Victorian opposition backflips on major election issue

The Victorian Liberals have performed a major policy backflip over a controversial tax ahead of the state election.

The Victorian opposition has performed a major policy backflip ahead of the state election, after the party announced a change in its stance towards a controversial mental health levy.

The tax, announced in last year’s state budget to address gaps in mental health, was initially opposed by the party, with leader Matthew Guy arguing businesses should not have to bear the brunt of the levy.

The tax, which is expected raise $843 million per annum, came into effect this year and charges a surcharge to businesses with more than $10 million in wages.

The opposition voted against the bill when it was introduced in parliament in May last year with Matthew Guy vowing to scrap the tax at a press conference in February

“We’ve said that we don’t want to increase taxes or put on new taxes,” he said at the time.

Opposition leader Matthew Guy (left) repeatedly stated the party would scrap the $843 million levy. Picture: Jake Nowakowski

But in a noticeable backflip on Monday, his colleague shadow treasurer David Davis and mental health spokesman Emma Kealy maintained the levy would remain.

“We said initially that we didn’t support the tax,” Ms Kealy told reporters.

“The tax is now in place, it has been in place since January of this year. We’ve always said we’d support the Royal Commission’s vision of what they want to achieve for Victoria.”

Deputy Premier James Merlino called the Liberals “divided” on Monday. Picture: NCA NewsWire / David Geraghty

Following the press conference, Victorian deputy Premier James Merlino accused the opposition of backflipping on the major policy and called the Liberal party “divided”.

“This is a rabble of an opposition,” he said.

“They’ve been spooked by the South Australian election. They know they can’t go to an election talking about health cuts.”

It comes just months ahead of the November 26th election, with key battles expected to play out over the budget, health and the rising cost of living.

Mental health has also been a central issue for both parties, following two years of consistent lockdowns placing severe pressure on Victorians, particularly the state’s youth.

The pandemic further highlighted gaps in the mental health system, with Labor pushing through implementing crucial recommendations from the Royal Commission, and the Victorian Liberals pushing its own promises if elected.

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Originally published as Victorian opposition backflips on major election issue