Taxes on poker machines will be increased and Melbourne's parking congestion levy vastly expanded under new measures to keep Victoria's budget in the black until at least 2017.
Public transport fares will rise by 2.5 per cent, two-hour fares will expire after exactly two hours and weekend fares will also go up, the government announced on Friday.
From April, taxes on poker machines in bigger venues will be increased by 4.2 per cent, while the minimum player return ratio will be reduced from 87 per cent to 85 per cent.
The government also hopes to negotiate a deal with Crown Casino that would see the venue pay $5500 for each poker machine in 2013/14 and $22,175 from 2014/15 onwards.
People parking in and around the city will be slugged with Melbourne's congestion levy boundary to be expanded to include much more of the city.
Overall the picture looks bright for Victoria, which is on track to record a $221.8 million surplus in 2013/14.
The surplus is predicted to reach $2.7 billion by 2016/17.
Treasurer Michael O'Brien said Victoria is the only state to have a triple-A credit rating with both major ratings agencies and a stable outlook.
"Victoria has the strongest state finances in Australia," he said.
"In these challenging economic times, the coalition government must maintain a disciplined budget to ensure we can continue to invest in the critical infrastructure and services that Victorian families and businesses deserve."
But Shadow Treasurer Tim Pallas said the budget update is bad news for Victorian families, with the cost of living set to rise.
"Whether you're a commuter, whether you're a public transport user, whether you're a punter, you will be hit and you will be hit hard by these new initiatives," he said.
"This is a government obsessed with plundering the pocket of Victorians."
He said government was allowing gaming operators to take more profit from punters, which mean punters won't come to venues and jobs will be lost.
Crown's share price slumped on the news of the poker machine levy, falling 72 cents, or 4.33 per cent, the biggest fall of the ASX 200.
In a statement, Crown stressed its importance to the Victorian economy and confirmed it was in negotiations with the government.
"The discussions we are having with the Victorian government are positive and when completed will hopefully position the facility for sustained long term growth and help us to compete with the ever increasing interstate and international competition," Crown Resorts chairman James Packer said.
