Victoria’s Bold Move: Cutting Regulators in Half While Taxes Remain Stubbornly High
The Victorian government plans to reduce business regulations significantly, but tax reforms are still off the table, leaving many entrepreneurs disappointed.
Victoria, Australia, Regulations, Taxes, Economic Growth, Business Council
Melbourne: The Victorian government is making some big changes to help businesses. They’re planning to cut the number of regulators from 37 down to at least 18 by 2030. This could save businesses around $500 million over five years. Sounds good, right?
But here’s the catch: while they’re slashing red tape, they’re not touching taxes. So, businesses might feel a bit lighter on regulations but still weighed down by high tax rates.
The government is kicking off these changes in the manufacturing and food sectors first. However, they won’t share a detailed plan until 2025. Premier Jacinta Allan mentioned that regulations should help, not hinder businesses.
They’re also focusing on five key areas for growth, including advanced manufacturing and digital technologies. Plus, there’s a $20 million fund for start-ups and small businesses in these sectors, set to launch in 2025.
Despite the positive steps, the Business Council of Australia isn’t thrilled about the lack of tax reform. They recently ranked Victoria as the worst state for businesses, so they’re hoping for more action on that front.
To further support businesses, the government is forming a Premier’s Business Council, which will include some big names from various industries. But not everyone is convinced this is enough. Opposition leader John Pesutto called the economic statement a “fraud,” criticizing the government’s overall performance.
On the flip side, Treasurer Tim Pallas defended their record, highlighting that the Victorian economy has grown by 27.4% over the last decade. However, this growth comes with a hefty price tag, as the state’s debt is projected to rise significantly in the coming years.
Overall, while the plan to cut red tape is a step in the right direction, many are left wondering when, or if, tax reforms will ever come.