As Victorians pay the highest taxes in Australia, the Liberals and Nationals have today launched a discussion paper aimed at reforming Victoria’s tax system and easing the burden on singles, families and businesses.
‘Making Victoria’s Tax System Work – Reducing cost pressures for families, community groups and business’was launched today and seeks public input on how to make Victoria’s tax system more competitive, encourage investment in our state and ease the burden on Victorians.
Victorians pay the highest taxes – $5,074 per person – of any state in Australia, including the highest property taxes per capita – $2,120 per person – in the nation.
Furthermore, new figures released by the Parliamentary Budget Office today show Victorian businesses are also being heavily slugged, facing the largest increases in worker compensation premiums and paying some of the highest levels of payroll tax in Australia.
The paper also outlines the 49 new and increased taxes that the Andrews Government has imposed across the state since it was elected in 2014, including the jobs tax and rent tax, as well as the schools tax announced in this year’s budget.
With the Andrews Government flagging its new Holiday and Tourism Tax – its 50th new or increased tax or charge – just days ago, the discussion paper’s release presents an opportunity to consider Victoria’s tax system as a whole and work with Victorians to ease their tax burden.
The Liberals and Nationals will seek submissions from young people, families, sole traders, retirees and businesses across Victoria on how to reform and improve Victoria’s tax system.
Opposition Leader John Pesutto said: “Victoria’s tax system is broken and we want to fix it with the help of Victorians from across our state.
“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 apolicy 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.”
Shadow Treasurer Brad Rowswell said: “Victoria’s tax system needs to encourage opportunity and promote a growth agenda for jobs, investment, competitive markets, and digital transformation.
“Instead, Victoria’s tax system is punitive. It discourages rather than incentivises investment and job creation in our state. It adds costs to businesses and families actively trying to get ahead. It undermines choice and creativity.”
Shadow Finance Minister Jess Wilson said: “Fundamentally, our state’s tax system is uncompetitive. Why would a business relocate to or grow and create more jobs in Victoria when payroll tax and land tax hit harder in Victoria than in other states?
“We want to hear from all Victorians on how being hit with tax after tax is creating an unsustainable environment and what they think is needed to be done to fix it.”
Victorians are encouraged to make a submission to the ‘Making Victoria’s Tax System Work – Reducing cost pressures for families, community groups and business’ review and address any of the considerations raised in the discussion paper that they feel is relevant to them.
Submissions will close on 31 October 2023 and the Liberals and Nationals Coalition will be consulting further with communities before releasing milestone policies as part of its economic reform agenda in the lead up to the 2026 State Election.
All Victorians are encouraged to submit their views and ideas at www.bettertaxsystem.com.au.
