Victorian budget a risk to recovery

Original article by Rachel Baxendale, Geoff Chambers
The Australian – Page: 1 & 6 : 21-May-21

The Victorian government’s May 2021 Budget shows that the state’s net debt will blow out to $156.3bn by mid-2025. However, the government has confirmed that the state’s deficit for 2020-21 will be much lower than previously forecast, at $17.4bn. The key measure announced in the Budget is a payroll tax surcharge of 0.5 per cent on businesses with a wages bill of more than $10m; this will rise to one per cent for businesses with wages costs of more than $100m. The surcharge is slated to raise $387m in 2021-22 and about $3bn over four years, with the proceeds to be used to finance a $3.8bn mental health package. The levy has been criticised by business leaders and federal Treasurer Josh Frydenberg, who warn that it will cost jobs and undermine the national economy’s recovery from the pandemic.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY

$32bn debt binge funds pledges

Original article by Rebecca Urban
The Australian – Page: 6 : 28-May-19

The Victorian Government’s May 2019 Budget has forecast a surplus of $1bn in 2019-20, rising to $1.5bn in the following financial year. State debt is projected to rise by $32.1bn over the forward estimates period, topping $54.9bn in 2022-23. The increased debt will be used to finance infrastructure projects, with expenditure on infrastructure to average $13.4bn a year over the forward estimates. Meanwhile, the government has scaled back its forecasts for growth in employment and gross state product over the next three years.

CORPORATES
VICTORIA. DEPT OF TREASURY AND FINANCE, MOODY’S INVESTORS SERVICE INCORPORATED, S&P GLOBAL RATINGS

State embarks on a dazzling spending binge

Original article by Patrick Durkin, Ben Potter
The Australian Financial Review – Page: 6 : 2-May-18

The Victorian Government’s May 2018 Budget has forecast a surplus of $A1.4bn in 2018-19, amid expectations that revenue will rise by almost nine per cent. The Government has attributed the strong Budget outlook to factors such as rising stamp duty and payroll tax revenue, the state’s economic growth and an increase in its share of GST revenue. The Government has also announced that it will invest $A13.7bn in infrastructure projects, including hospitals, schools and roads.

CORPORATES
VICTORIA. DEPT OF TREASURY AND FINANCE, SNOWY HYDRO LIMITED, MELBOURNE AIRPORT, MOODY’S INVESTORS SERVICE INCORPORATED, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF VICTORIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Surpluses stockpiled to protect state for rainy day

Original article by Rick Wallace
The Australian – Page: 6 : 28-Apr-16

Victorian Treasurer Tim Pallas unveiled the state’s 2016 Budget on 27 April. The State Government expects to achieve Budget surpluses of $A9.3 billion over the next four years. Capital spending has been increased to $A7 billion a year. Health and education will receive capital investment funding of about $A1 billion each. The Government intends to borrow up to $A16 billion, but it aims to keep net debt below five per cent of gross state product.

CORPORATES
VICTORIA. DEPT OF TREASURY AND FINANCE, AUSTRALIAN LABOR PARTY

No option for state but to make switch too

Original article by Rick Wallace
The Australian – Page: 8 : 22-Mar-16

The Victorian Government has been forced to change the date of its 2016 Budget from 3 May to 27 April, in response to a move to bring forward the Federal Budget by one week. However, the Opposition’s Budget reply is still scheduled for its original date in May, which has attracted criticism from treasury spokesman Michael O’Brien.

CORPORATES
VICTORIA. DEPT OF TREASURY AND FINANCE, AUSTRALIAN LABOR PARTY