Victoria’s peak business and industry body is advocating for the 2023-24 State Budget to provide targeted support to enable business to play a pivotal role in driving Victoria’s economic growth.

The submission builds on The Victorian Chamber’s 2022 State Election Platform, Powering Victoria’s Future, and is centred around four key pillars: strengthening Victoria’s jobs and skills, building Victoria as the best state to own and operate a business, driving Victoria’s economy and growing Regional Victoria.

Victorian Chamber of Commerce and Industry Chief Executive Paul Guerra said: “Off the back of a recent State Election, the ask from the business community is to support them with appropriate energy cost reduction and enabling Victorian business to be competitive with other states.

“This year’s State Budget must provide small, medium, large and family businesses with the right conditions to contribute to Victoria’s economic growth.”

Key areas of recommendations include:

Energy

• Develop and implement energy efficiency incentives for businesses, such as tax breaks or grants, to encourage the adoption of energy-efficient technologies and practices.
• Fund an ESG (Environmental, Social, Governance) education campaign that empowers businesses to implement ESG initiatives and improve reporting practices.

Taxation

• Increase the payroll tax threshold from $700,000 to $1.2 million across Victoria and to be comparable with NSW’s payroll tax rate, decrease the rate from 1.21 per cent to zero in Regional Victoria to increase regional attractiveness for business investment and growth.
• Conduct a review of state taxes, including the release of a green paper to identify the costs and benefits of state tax reform to inform long-term tax reform aimed at increasing increase Victoria’s competitiveness.

Regulation

• Fund Better Regulation Victoria and Services Victoria to lead cultural change, develop a ‘one door’ approach for State and Local Government regulation, and provide an escalation point for Victoria’s regulatory system.

Regions

• Fund a targeted, industry-led ‘Work in the Regions’ initiative to encourage people to work in regional industries experiencing skills shortages.
• Conduct an audit of all accommodation options across Regional Victoria to adequately prepare for the Commonwealth Games.

Major events

• Create a $200 million events attraction fund to secure world-leading events and ensure we remain the number one state for events. This should include a business plan for securing the Rugby World Cup 2027, the 2034 FIFA World Cup and COP27.

Manufacturing

• Provide R&D incentives to small and medium manufacturing businesses to boost the local industry.

Skills and training

• Develop a standardised microcredentials framework, including defining the role, accreditation requirements, and funding mechanisms of microcredentials, to enable the rapid reskilling and upskilling of the workforce.

The Victorian Chamber’s submission also includes an express request to ensure the State follows a path to return to Budget surplus.

Mr Guerra said: “Making it easier and more economically attractive to own and operate a business in Victoria will incentivise more investment across the State which leads to additional jobs for Victorians and economic growth.

“Empowering business with the skills that are needed now and into the future will not only allow our State’s first-class manufacturing and service industries to grow, but also provide significant economic growth.

“The Government should also focus on fiscal repair to reduce the State’s debt via cost reduction and project control. It’s imperative that the forecasted path to budget surplus is met, as we must protect the State’s ability to borrow money at competitive rates, via our credit rating.”

The full list of recommendations is available on the Victorian Chamber's Budget submissions page.