Victorian Liberals to pursue tax reform

Victoria’s opposition will launch a discussion paper proposing a swathe of tax reforms, arguing the state has the highest taxes in the nation.

Victorian Opposition Leader John Pesutto. Picture: David Crosling

Victoria’s opposition will launch a discussion paper proposing a swathe of tax reforms, arguing the state has the highest taxes in the nation.

Ahead of the return of state parliament next week after the winter break, Opposition Leader John Pesutto and Treasury spokesman Brad Rowswell are seeking input from Victorians to devise policies aimed at making the tax system more competitive.

The Coalition claims Victoria has the highest annual taxes of any state in Australia, at $5074 per person, and the highest property taxes, at $2120 per person.

New figures released by Victoria’s Parliamentary Budget Office show state businesses face the largest rises in workers’ compensation premiums, and some of the highest payroll tax bills.

The paper lists 49 new and increased taxes the Andrews government has imposed since coming to government in 2014, including taxes on private schools and property announced in the May state budget.

Mr Pesutto said the state government’s consideration of a new tourism levy or rent freeze – flagged over the weekend – has Victoria on track for a 50th new or increased tax.

“Victoria’s tax system is broken and we want to fix it with the help of Victorians from across our state,” the Liberal leader said.

“We need a tax system that eases the burden for singles, families, community groups and business at a time when they are all experiencing unprecedented cost pressures.

“Just this week we saw the Andrews government again float a policy thought bubble, with its new holiday and tourism tax, to try to pay for their gross incompetence and waste on major projects, including the debacle that is the 2026 Commonwealth Games cancellation.

“We can’t tax our way to prosperity and it’s time for a comprehensive review of our tax system to get the balance right and ensure we are providing some much-needed relief for workers, families and businesses.”

Mr Rowswell said Victoria’s tax system needed to encourage opportunity and “promote a growth agenda for jobs, investment, competitive markets, and digital transformation”.

Mr Pesutto and Mr Rowswell urged Victorians to make a submission to the discussion ahead of an October 31 deadline, with findings to be used to inform opposition policy ahead of the 2026 state election.