The day after handing down his ninth State Budget, Mr Pallas joined more than 400 guests for his eighth State Budget Lunch hosted by the Victorian Chamber and Melbourne Press Club. 

The event provided an exclusive opportunity to engage with the Treasurer and find out more about the 2023-24 Budget.  

Mr Pallas said this year marked a new post-COVID era for Victoria and its finances, representing “two Budgets in one”. 

The first part was about paying off the COVID emergency debt in a way that was “temporary, targeted and responsible”.  

Mr Pallas conceded many of the measures, including the $31.5 billion COVID Debt Levy, would largely impact medium and large business and multiple property owners. 

Mr Pallas said the levy was “reasonable and proportionate to ability to pay” amid rising company profits and rent revenue, with Victoria now in a period of strong post-COVID growth. 

“Victoria has a historically low unemployment rate of around four per cent and more than 440,000 new jobs in the market, helping the Budget shift towards an operating surplus within two years and stabilising debt,” Mr Pallas said. 

“With the economy strong, now is the time to confront the situation squarely, to repay the kind of debt that kept Victoria going through the pandemic. We will repay that debt over 10 years by 2033. 

“We're making progress in this budget on that. But we're not there yet and there's no room for complacency or triumphalism. But I'm getting increasingly confident.” 

The second part of the budget was focused on ‘Future Victoria’, with a capacity to deliver election commitments and invest in key infrastructure, energy, education and health projects. 

Business welcomed some of the Budget measures, including the shift from stamp duty to land taxon commercial property, the increase in the payroll tax threshold for small business, reduction of business insurance duties and funding for regulatory reform. 

Mr Pallas thanked the Victorian Chamber for its advocacy on stamp duty reform and maintained that Victoria is “a great place to do business”. 

“This is a recognition to the outstanding work of the Victorian Chamber. I want to thank them for engaging with us. It appealed to me and we've come on a long journey in working out how we might transition from stamp duty to an annual property tax for commercial industrial properties.” 

Victorian Chamber Chief Executive Paul Guerra thanked Mr Pallas for his engagement, outlined business concerns and voiced the Chamber’s commitment to ongoing dialogue with the Government to advance business interests in the State. 

“Yesterday’s budget 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,” Mr Guerra said. 

“The Victorian Chamber has a transparent and collaborative relationship with the State Government and we appreciate the opportunity to put the case of business.  

“I’m not going to sugar coat our budget response. Business has been hit hard, and the Treasurer knows my view.  

“We aren't here to whinge either. That's not our style. We will recover and it will take each of us in the room today and beyond.”