The projects worth billions funded with Victoria’s secretive ‘credit card’ revealed

Victoria drew almost $10 billion from a controversial fund last year to cover hospital spending, infrastructure work and settlement of the Commonwealth Games dispute.

An analysis of known treasurer’s advances from the 2023-2024 financial year, compiled by the state opposition and provided to The Age, shows Treasurer Tim Pallas signed off on cash injections for 161 projects totalling $9.6 billion.

A treasurer’s advance refers to a minister’s funding request that bypasses the cabinet. It is often used for urgently needed funds that aren’t listed in the budget.

The spending spree included a $1.45 billion advance for the Department of Health for extra hospital spending, $1.36 billion for the Department of Transport and Planning for Suburban Rail Loop East main works, and $380 million for Treasury and Finance to cover the Commonwealth Games settlement payment.

While the $380 million Commonwealth Games figure was already known and the treasurer previously suggested that the cost would come from budget contingencies, it has now been confirmed that the money came from a treasurer’s advance.

Other advances included $110 million for government-funded school tutors, $15 million to extend the payment scheme for customers of liquidated builders, $8 million for power outage payments, and $900,000 for state funerals and memorials.

The treasurer also signed off on $15 million for “operating and wages funding” for both the Department of Jobs and Department of Government Services. The Department of Premier and Cabinet also received approval to spend $600,000 on parliamentary advisers.

The $9.6 billion figure did not include unused funding from prior years and was calculated by reviewing documents provided to parliament’s public accounts and estimates committee.

A decade ago, during its final year in office, the former Coalition government used treasurer’s advances to pay for just 19 policies worth a total of $364.6 million.

Victorian Treasurer Tim Pallas.Credit: Joe Armao

The exponential increase has prompted the opposition to claim the government is using the advance to avoid scrutiny on how it is spending taxpayer money.

Opposition Leader John Pesutto said Labor’s “misuse” of treasurer’s advances should not be allowed to become the new norm.

“The Allan Labor government’s increasing reliance on emergency payments to fund core government business reflects just how dire Victoria’s finances have become,” Pesutto said. “Labor’s misuse of treasurer’s advances undermines transparency, accountability and proper financial management.”

But Environment Minister Steve Dimopoulos, who was taking questions on behalf of ministers on Sunday, insisted treasurer’s advances didn’t exist just for disasters or emergencies.

“It’s happened in my portfolio with a bunch of different projects,” Dimopoulos said. “The government will decide to hold some money centrally in contingency for a particular project. When the agency that’s responsible for delivering that project delivers milestones, it then gets paid.

“It’s pre-budgeted, it’s just milestone payments. It’s responsible government.”

The $9.6 billion in treasurer’s advances is shy of the $12 billion “credit card” limit that The Age revealed in May was available to Pallas.

Labor MPs have been told to limit funding requests for their electorate as senior ministers prepare for another difficult budget.

Victoria’s net debt is expected to peak at $187.8 billion by the middle of 2028 – equivalent to about one-quarter of the state economy.

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