The Victorian Chamber Team was in the Budget lock-up to decipher the content and compile our review, the results of which was certainly a mixed bag for our members.

It was always going to be a difficult task to balance the needs of business, industry and all of us Victorians, with the need for fiscal consolidation.

A highlight for us in the budget was the phasing out of stamp duty on commercial property – a proposal we had significant input in – it’s one example of how we are able to work together to bring about pragmatic and innovative reform that will benefit business – and also the broader economy – for generations to come. It’s a brave and appropriate reform.

There’s some good news in the Budget for smaller businesses, particularly the increase in the payroll tax threshold from $700,000 to $900,000 in 2023-24 and $1 million in 2024-25, and we also welcome further investments into our TAFE sector.

But I’m not going to sugar coat our budget response beyond that. Business has been hit hard, and while there are a number of positive initiatives in the budget, it’s at best a tough budget for business.

We know there is certainly going to be pain for medium to large businesses, as well as property owners.

The new COVID Debt Levy on businesses with national payrolls of more than $10m, removal of the tax-free threshold for businesses with payrolls of more than $5m, and the new or increased land tax bill for owners of more than one property comes in addition to the previously announced 42 per increase to WorkCover premiums.

Our concern is that while we are all already operating under tough economic conditions, these increased costs will be passed to consumers, small business suppliers, commercial and residential tenants or through job cuts.

Four hundred and thirty members and guests heard directly from Victorian Treasurer Tim Pallas yesterday during the annual Victorian Chamber and Melbourne Press Club State Budget Lunch at Crown Palladium. Press Club Vice President Heidi Murphy engaged the Treasurer in a Q&A and he also took questions from the floor. The Treasurer gave his insights, and some further explanation to the businesses in the room, but we appreciate the accessibility he always gives our members.

We agree with the need to address the debt level, but hitting business hard was not the answer. Without viable businesses we don’t have employment opportunities and we don’t have healthy communities. The increased costs will be difficult for medium and large businesses to absorb without passing it on to consumers or small business suppliers, or through job losses.

We shared our views on behalf of business to many media organisations and publications following the State Budget release, including to the Herald Sun, the Age, the Australian Financial Review, the Australian, Sky News, the Today Show, Sunrise, Seven News, Nine News, Ten News, Win News, ABC Radio and 3AW. This was certainly a budget that generated a lot of public interest, and I’m sure you have absorbed a lot of it.

I hope your business can take something out of the Budget, but either way rest assured we will continue strongly advocating for more measures to support business and ensure it plays a leading role in our recovery.

As I said to the Treasurer respectfully, business wants to be a part of the recovery, but what we need right now is certainty. We have no further capacity to take more tax or levy hikes. We want a strong business sector in Victoria. We need a commitment to remove the COVID taxes sooner than 10 years if debt comes down by reduced Government spending or other growth initiatives. And finally, we need the Government to commit to work with business to accelerate growth.

It’s about certainty from here as it will build confidence, and the business community needs it.

Enjoy the rest of your week.