The Victorian Liberals and Nationals have pledged to cut payroll tax, reverse Labor’s land tax hikes, and deliver a “real” surplus if they win the upcoming state election.
Opposition Leader Jess Wilson sought to strengthen the Coalition’s election pitch on Friday, unveiling a “comprehensive plan to clean up the books, repair the budget and turn our economy around”.
As part of the plan, the Opposition will gradually increase the payroll threshold from $1 million to $1.2 million over two years, before reducing the metropolitan payroll tax rate to 4.8 per cent.
It is expected to deliver payroll tax relief to 23,000 Victorian businesses.
“Victoria’s per capita economic growth is the worst in the country… We need more business investment in Victoria and more jobs to grow our economy and grow State revenue from this,” Ms Wilson said.
“This tax reform will make it cheaper for businesses in Victoria to create jobs. It will increase economic growth which will make the debt reduction task easier.”
The Opposition Leader also announced a commitment to reverse Labor’s 2023 land tax changes, by incrementally lifting the land tax threshold from the current level of $50,000 back to the old level of $300,000 over a five year period.
“This will mean more than 270,000 land tax payers will have lower land tax bills by up to $975 per year under a Liberal and Nationals Government,” she said.
While acknowledging the changes were “modest”, Ms Wilson sought to pitch the Coalition as “disciplined and responsible”.
“My team and I would love to do more – and to do it sooner. But I have to be honest with Victorians,” she said
“None of this will be easy. It will take time. But this is a clear signal about the priorities of a Government I will lead – to reduce taxes, invest in and prioritise essential services and end the waste.”
The Opposition’s 10-year economic plan also includes already announced policies, including a pledge to slash the number of “back office roles” in government departments through a Victorian Public Service hiring freeze.
As well as pledges to scrap Labor’s emergency services levy, and taxes on schools, visits to the GP, and short-stay accommodation.
It also includes the commitment to lift the stamp duty free-threshold to $1 million for first home buyers, repeal the state’s Treaty legislation, and implement a “Charter of Budget Honesty” and “Real-Time Expenditure Tracker”.
But the centrepiece of the plan is a commitment to deliver a “real surplus” by 2032.
“We will progressively reduce this deficit once elected with a view to returning to a cash surplus – a real surplus – by 2032. We won’t pretend, like the Government, we are in surplus now – we are not,” she said
Unlike Labor’s “operating surplus” – which excludes spending on major infrastructure projects – a cash surplus would allow the government to start paying back Victoria’s net debt – which is forecast to hit a record $199.3 billion by mid 2030.
“It won’t be easy, but our plan outlines a disciplined and responsible pathway to a cash surplus which will allow us to repay the $200 billion debt burden Labor has left Victorians,” Ms Wilson added.
The Opposition Leader unveiled the economic plan during a budget response speech in which she accused the Allan government of having “no serious economic plan” and “no vision”.
“It’s hard to call it a budget. It’s a credit card statement for 11 years of Labor failure,” she said.
“No reform, no serious economic plan, no vision. Just the usual platitudes, excuses and misdirection.”
“But after 12 years of higher debt, higher taxes, higher interest and poorer services – was anyone really surprised?
“By almost every measure we are the worst performing State in the Commonwealth by a country mile.
“Our debt, which our children and grandchildren will have to pay, is growing to unprecedented levels. Our services are crumbling. Our teachers are marching on the streets. Our roads are falling to pieces.
“And I look across at the Treasurer and the Premier and I don’t see people with the energy to tackle these issues.”