Victorian Treasurer Tim Pallas has hinted at tax changes as he promised to hand down a leaner third budget.
Mr Pallas told business leaders the 2017/18 state budget, expected in May, will include a "more sensitive, competitive tax mix".
He also suggested in his address to the Committee for Economic Development of Australia that state assets could be put to market to free up money for future infrastructure projects.
Mr Pallas would not be drawn on details about possible tax changes but highlighted "asset recycling" as an avenue to boost investment.
Last year, the government closed a $9.8 billion deal to lease the Port of Melbourne which freed up millions invested in road and rail projects.
Mr Pallas spoke favourably of the deal, and says the government was exploring other asset sales.
The Victorian government in December slashed its budget surplus forecast from $2.9 billion in the April 2016 budget to $1.7 billion as a result of big spending on the Hazelwood rescue package, ambulance response times and homelessness services.
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