The 2024-25 State Budget submission advocates for a stop to imposing additional costs on business, while empowering the private sector to launch our state into economic prosperity.

It underscores that Victoria’s current status as the most expensive state to do business in Australia hinders local and international investment.

The Submission is divided into four sections:

• Transform and Reduce Business Expenses
• Transform Foundations for Success
• Transform and Prioritise Growth
• Regional Transformation.

Each section provides targeted recommendations to enable businesses to thrive, ease the overall business environment, grow business productivity and propel regional businesses into the future.

The recommendations include:

Transform and Reduce Business Expenses

• Ensure no new or increased taxes and levies are applied to Victorian businesses to prevent business conditions deteriorating further.
• Raise the payroll tax-free threshold to $1.2 million and change Regional Victoria’s payroll tax rate to zero.
• Provide $3 million of funding over one year for the establishment of a Cyber Safe Squad program to take cyber safe advice and assistance to small businesses across Victoria and provide students with practical work experience in the cyber industry.
• Provide $1 million of funding over two years for small businesses in Victoria to participate in the Small Business Marketing Program.

Transform Foundations for Success

• Develop a comprehensive renewable energy roadmap that details industry’s transition to renewables and provides energy certainty and security to the business community.
• Establish subsidies or tax incentives for employers that provide work experience and internships to boost the labour pipeline.
• Allocate $10 million over two years to subsidise and enable businesses in Victoria (including in Regional Victoria and Suburban Melbourne) to participate in the Carbon Compass Program and benefit from its tailored carbon audit and management solutions.
• Develop next generation Public Private Partnership (PPP) models that leverage capital and capability available in the private sector to address the demands on existing infrastructure.

Transform and Prioritise Growth

• Provide seed capital funding for a joint-State-and-private-sector venture to develop a comprehensive innovation and commercialisation ecosystem.
• Develop a new ‘Export Victoria’ strategy to increase Victoria’s share of Australia’s total exports to 50 per cent.
• Develop a detailed 10-year tourism strategy to attract more local and international visitors to our great state and propel our local economy.
• Develop a state-wide business event acquisition plan that supports State Government strategies to increase Victoria’s export opportunities and attract investment in key sectors and capabilities central to the future growth and competitiveness of the Victorian economy.

Regional Transformation

• Take a ‘Team Victoria’ approach to manage migration changes.
• Continue investing in regional roads for increased safety and connectivity.
• Streamline support for businesses to access procurement opportunities.
• Allocate funds for a four-year business case to build a high-speed train service to Regional Victoria via dedicated lines from Southern Cross Station, starting with Ballarat.
• Fund Public Transport Victoria to facilitate free Wi-Fi access on trains to rural Victorian areas.
• Develop a dedicated planning strategy for Regional Victoria, including medium-density housing.
• Partner with internet service providers to enhance infrastructure to country areas.

The Victorian Chamber of Commerce and Industry, representing more than 85,000 members, clients and customers across all sizes and sectors, developed our submission through extensive industry consultation including survey data.

If adopted, the following targeted recommendations would contribute significantly to the overall prosperity of the State and harness the many opportunities that Regional Victoria presents.

Victorian Chamber of Commerce and Industry Chief Executive Paul Guerra said: “Enabling businesses to prosper translates into more jobs, more opportunities and better economic outcomes for all.

“Victoria faces financial challenges that demand a transformative growth strategy while managing costs to set us on a path to economic prosperity which is the cornerstone for the wellbeing of all Victorians.

“Our 44 policy recommendations, grounded in meticulous data analysis and industry consultation, advocate for business-centric budget priorities. Collaboration between the public and private sectors is essential for a commerce and confidence-led recovery, making Victoria the best place to live, work, learn, and operate a business.

“We aim to position Victoria as a global player by leveraging international offices and Commissioners for export opportunities, investing in domestic businesses, and fostering growth. By preparing a solid foundation, we can seize the opportunity of productivity, connectivity and prosperity for all, ensuring Victoria remains the ‘Best State in the Lucky Country’ for generations to come.”

The full document can be read via our 2024-25 State Budget Submission.

Victorian Chamber briefing

Join our Chief Executive Paul Guerra and Executive Director Policy and Advocacy Amelia Bitsis for a webinar and regional event discussing our State Budget Submission and business-related policy issues. Details below:

• VCCI State Budget Submission Overview Webinar
• Geelong State Budget Submission and General Update