We should all be moving towards prosperity for everyone, and business remains at the heart of that and as the key driver. The 2021-22 State Budget announced yesterday is fiscally responsible with restrained, yet targeted spending. The Victorian Chamber’s State Budget Submission centred around three pillars of enabling business, growing business and the ease of doing business and there are many elements of the Budget that align with these themes.

Read our full 2021-22 State Budget Overview and what it means for your business on our website.

The Budget ticks a lot of boxes for business with job creation, addressing skills gaps, powering innovation and manufacturing and creating more inclusive workplaces for women. It recognises that COVID-19 has disproportionately impacted certain sectors including the visitor economy, CBD businesses, international education, events and the arts, as well as recognising that regional Victoria has spurred our recovery with significant funding to enable regional communities to continue that trajectory. It’s a great budget for regional businesses which now have the lowest payroll tax rate in the country.

Every Victorian will welcome the once in a generation reform to our mental health system and we should not underestimate the flow on effects that a fit for purpose system will have on our society. However, business is once again going to pick up the bill. Business also cannot continue to be taxed to fund project cost blowouts and the State Government needs to stop treating business as a fund of last resort.

It raises concerns about Victoria’s credentials as the best place in Australia to operate a business as the Mental Health and Wellbeing Levy, in particular, will be a disincentive for large and global businesses to have a base in our state.

Next year, the Victorian Chamber expects to see a pre-election Budget with a stronger focus on business and jobs which will be needed to propel our economy. This year’s Budget was an opportunity missed to swap stamp duty for a more efficient and equitable property tax and the Victorian Chamber will continue to lead the advocacy for this important structural economic change.

I am looking forward to today’s annual post-Budget lunch with Victorian Treasurer Tim Pallas MP in partnership with the Melbourne Press Club, where he will brief our guests on the Budget and take part in a Q&A. The Chamber is proud to be holding this event for the fifth consecutive year to give our valued members the chance to hear directly from the Treasurer.

We can all play a role in the growth and prosperity of Victoria and next week is our chance to do that when we come together for the Victoria Summit Vision Day. I am confident that through the Summit process we can create a plan that ensures Victoria remains the best place to live, work, learn and operate a business and drive real, tangible outcomes and policy for the state. Head to the Summit website now for your last chance to secure tickets.

It has become clear over the past 12 months that in order to emerge from this pandemic stronger than before, we need a collaborative approach towards defining a new path forward for Victoria. There is a lot of work to be done to continue our recovery and it is up to us as a state to come together and work out how best to leverage the vast opportunities that present.

Regards,
Paul