Public works cash, tax hike in Vic budget

It's said to be a tighter budget than the two before it, but it won't stop Victoria's Andrews government from continued infrastructure investment.

Victorian Premier Daniel Andrews

A tighter budget won't stop Victoria's Andrews government from continued infrastructure investment. (AAP)

It's predicted to be a tighter budget than the two before it, but Victoria's Andrews government will still spend big on infrastructure and attempts to fix the law and order mess.

The state's financial blueprint will be released on Tuesday and the lead-up has seen modest spending announcements balanced with some tax hikes.

Treasurer Tim Pallas announced those in the market for a new car will pay more stamp duty from July 1, reaping the government more than $100 million a year.

From the same date investment property transfers between partners will no longer be exempt from stamp duty.

It's estimated about 3000 people a year use such an arrangement and it will generate $20 million a year.

Land tax will also be revalued annually instead of biannually from 2019.

Mr Pallas flagged in February more public assets could be sold off to help state coffers after the Melbourne port's 50-year lease raked in $9.7 billion.

Pre-budget infrastructure announcements included $100 million for planning the North East Link toll road, $800 million for more level crossing removals and $271.55 million for the Melbourne Park redevelopment.

And in a bid to fix the law and order headache $2 billion was committed last year for more police and community safety initiatives.

A $308 million program that will subject Victoria's most violent criminals to the same post-sentence restrictions as sex offenders was announced on Thursday.

Victoria is also battling with Canberra over a $1.45 billion bonus payment from the port sale.

To wedge the federal government, if the money is delivered it will all go to regional rail, mostly in safe coalition electorates.

On top of all this, new public sector pay deals mean recurrent costs will rise again.

To pay for it all, Mr Pallas unveiled a $2.9 billion surplus at the last budget - but by mid-year that surplus tumbled to $1.7 billion.

Mr Pallas assures Victorians they will continue to see surpluses.

"We will not be compromising our investment in health, in education, in infrastructure for roads and public transport, while running a tight budget," he said in a statement to AAP.

"We'll be efficient in the way we spend money and we'll assure Victorians that we'll manage debt within the levels that we've set, deliver strong surpluses and not spend any more than we earn."


Share
3 min read

Published

Source: AAP


Share this with family and friends


Get SBS News daily and direct to your Inbox

Sign up now for the latest news from Australia and around the world direct to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Download our apps
SBS News
SBS Audio
SBS On Demand

Listen to our podcasts
An overview of the day's top stories from SBS News
Interviews and feature reports from SBS News
Your daily ten minute finance and business news wrap with SBS Finance Editor Ricardo Gonçalves.
A daily five minute news wrap for English learners and people with disability
Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS
SBS World News

SBS World News

Take a global view with Australia's most comprehensive world news service
Watch the latest news videos from Australia and across the world