The Andrews Labor Government’s agenda to jack up taxes and make Victoria the highest taxing state in the nation presents the greatest risk to stimulating job growth for Victoria’s post COVID-19 recovery.
Steep rises in payroll tax, stamp duty and a new mental health tax on businesses already paying Payroll Tax will provide a huge disincentive for businesses to invest and grow in Victoria and place our state way behind other states who are, like the Federal Government, focused on cutting taxes to supercharge growth rather than increasing taxes like Victorian Labor.
With Labor’s land tax take rising by over $1.5 billion over the forward estimates, three quarters of a billion dollars of stamp duty increases on medium priced family homes, as well as a windfall gains tax primarily on regional city housing developments all combine to place Victoria at the back of the queue when it comes to competitiveness and efficiency across Australia.
With the Federal Government increasing its payments to Victoria in its budget by more than $6 billion, the Andrews Labor Government will instead hit Victorians with $5.8 billion in new and increased taxes.
Despite the Federal Government giving the greatest financial assistance to Victorians during lockdown through JobKeeper and JobSeeker, the Andrews Labor Government will instead slug Victorians with larger and more expensive family and small business taxes.
As such, even the Andrews Labor Government admits that unemployment will remain above national average for the entirety of the four year forward estimates.
More than $4 billion has been cut from the Department of Jobs, Precincts and Regions including from critical industry programs in Small Business, Agriculture, Trade Tourism, Major Events and Innovation to name a few. At a time when our exports sectors have been hit by the closure of Chinese markets, now is not the time to be making cuts to the department responsible for supporting businesses and developing new markets for Victorian businesses.
Increased taxes are a risk to our post COVID-19 recovery.
Comments attributable to Shadow Minister for Finance, Jobs and Trade, Matthew Guy:
“Labor’s plan to tax us into an economic recovery is a huge risk to Victoria’s post COVID-19 economy.
“With Victoria now the highest taxing state in the nation and with new and extra taxes on jobs and business, the Andrews Labor Government is without a doubt the biggest risk to the state’s economic recovery.
“The Liberals Nationals’ plan to cut payroll tax and stimulate economic and job growth through incentives is a stark contrast to Labor who have no plan post COVID-19.
“Labor’s admission that unemployment will remain above the national average for every year of the four year forward estimates is an admission that their high taxing economic strategy is a disaster. Labor clearly has no plan for Victoria post COVID-19.”
Comments attributable to the Shadow Treasurer, Louise Staley:
“This Labor Government has no plan to grow our economy, instead it has decided to slug Victorians through new and increased family and small business taxes.
“The Liberal Nationals know the only way to truly grow jobs is to grow local business, not tax it.
“Victorians are paying the highest taxes in the country and deserve excellent services but instead we have declining education outcomes, a health crisis, crumbling rural roads and, a child protection catastrophe.”