Victorian budget: Tim Pallas hints at new taxes

Treasurer Tim Pallas has refused to rule out new taxes in his state budget, which was due to be handed down today.

Victorian Treasurer Tim Pallas. Picture: AAP

Victorian Treasurer Tim Pallas has refused to rule out new taxes in his state budget, which was due to be handed down today, but has been postponed until after the federal election.

Having already warned that Victoria is facing at least a $2.4bn writedown in stamp duty due to the property market downturn, Mr Pallas said: “I’m not ruling in or ruling out anything,” when asked if Victorians can expect new taxes.

The Treasurer said he had made it clear that the Andrews Labor government would not “curtail the capacity of the state to deal with the variable economic circumstances” by ruling out tax increases.

“We gave no such commitment, and quite frankly I think any aspiring treasurer or actual treasurer who gave those commitments would be doing the economy and the community a grave disservice,” he said.

“I think Victorians will be very pleased with this budget. It will be a Labor budget. It will honour our commitments to the Victorian people.”

Victorian opposition treasury spokeswoman Louise Staley said Mr Pallas had “all but confirmed there will be new taxes in the budget”.

“Victoria is already the highest taxed state in Australia and now we are going to see more and higher taxes in the state budget.

“Now we know the real reason why the Andrews Labor government delayed the state budget until after the federal election — they’ve got more new taxes planned.

“On the night before the 2014 election, Daniel Andrews was interviewed on Seven News by Peter Mitchell and gave a guarantee that he would not increase or introduce new taxes.

“Instead, Daniel Andrews is now the highest taxing Premier in Victorian history. His 12 new or increased taxes have seen Victorians’ tax bills increase by 35 per cent since he was elected.”

“As the saying goes, when Labor runs out of money, they come after yours.”

The Victorian budget is now due to be handed down nine days after election day, on Monday May 27.

Announcing the decision to delay the budget earlier this month, Mr Pallas blamed the “stark difference being offered to our state by federal Labor and the federal Liberals and Nationals.”

“Until we know who we will be dealing with in Canberra, it would be irresponsible to finalise our budget at this time,” the Treasurer said.

Western Australia is proceeding with its state budget on May 9, despite the federal election campaign.