GOVERNMENT SPENDING POLICY – VICTORIA

Victorian Labor enters debt-and-tax spiral

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Original article by Lily McCaffrey, Damon Johnston
The Australian – Page: 1 & 6 : 21-May-25

S&P Global analyst Rebecca Hrvatin has responded to the Victorian government’s 2025 budget by emphasising the need for fiscal discipline, particularly in the lead-up to the state election in November 2026. The budget papers show that Victoria’s net debt is forecast to rise from about $155bn at present to $194bn in 2028-29, while the state’s annual interest bill will top $10.5bn by that date. The state’s wages bill is in turn expected to blow out to $42bn in 2028-29, despite plans to shed about 1,200 full-time equivalent public sector jobs. Meanwhile, tax revenue is expected to rise to about $48bn in 2028-29, compared with $36.8bn in 2023-24; this is despite the absence of any new taxes in the budget.

CORPORATES
S&P GLOBAL RATINGS

No cost-benefit analysis done for $2b in legacy Games projects

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Original article by Rachel Eddie
The Age – Page: Online : 26-Jul-23

The Victorian government is under scrutiny over its plans to proceed with $2bn worth of Commonwealth Games-related infrastructure in regional areas. Premier Daniel Andrews has admitted that the government has not done a cost-benefit analysis of the expenditure on new social and affordable housing and upgraded sports facilities in regions that were to have hosted Games events. He contends that such an analysis is not necessary, as it is "common sense" that an increase in affordable housing is needed in regional Victoria. National Party senator Bridget McKenzie says she is shocked but not surprised that the state government has not undertaken a cost-benefit analysis, adding that the $2bn investment will not be sufficient to address problems in regional Victoria.

CORPORATES
VICTORIA. DEPT OF PREMIER AND CABINET, NATIONAL PARTY OF AUSTRALIA

$32bn debt binge funds pledges

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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

Debt to double to $60 billion as Labor drops cap

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Original article by Patrick Durkin
The Australian Financial Review – Page: 9 : 23-Nov-18

The Victorian Government’s election costings show that the state’s debt ceiling will blow out to 12 per cent of gross state product as a result of its infrastructure spending program, which will be partially funded via debt. Treasurer Tim Pallas had previously sought to cap state debt at around $30bn, or less than six per cent of gross state product. Labor has also advised that the state’s Budget surplus for 2019-20 is projected to be $1.7bn, compared with expectations of a $2.3bn surplus in 2018-19. The Coalition intends to retain the existing debt ceiling and will seek to reduce the state’s debt by $1.1bn over four years if it wins the state election.

CORPORATES
AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF VICTORIA, NATIONAL PARTY OF AUSTRALIA, VICTORIA. DEPT OF TREASURY AND FINANCE, MELBOURNE WATER CORPORATION

State embarks on a dazzling spending binge

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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

Labor bracing for backlash over $40m timber buyout

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Original article by Samantha Hutchinson
The Australian – Page: 7 : 4-Jul-17

The Victorian Government has entered into an agreement to acquire a majority stake in the Heyfield timber mill in the Latrobe Valley. The mill has been under threat of closure, with the potential loss of 250 jobs, due to insufficient supply of timber from state-owned forests. Agriculture and Regional Development Minister Jaala Pulford said the Hermal Group, the mill’s parent company, had agreed that there will be no loss of jobs while the sale process is being finalised. The Government is understood to have paid between $A38 million and $A42 million to conclude the deal.

CORPORATES
VICTORIA. DEPT OF ECONOMIC DEVELOPMENT, JOBS, TRANSPORT AND RESOURCES, HERMAL GROUP, AUSTRALIAN SUSTAINABLE HARDWOODS, PITCHER PARTNERS CORPORATE ADVISORY PTY LTD, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA

Smelter’s future hanging on power supply deal

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Original article by Pia Akerman, Tessa Akerman
The Australian – Page: 2 : 22-Dec-16

The Federal and Victorian environment ministers, Greg Hunt and Wade Noonan, have held talks with Alcoa CEO Roy Harvey in New York. Harvey declined to make a commitment regarding the future of the Portland aluminium smelter, despite being offered some $A230m worth of federal and state financial assistance to keep the plant open. He said the smelter’s fate depends on the outcome of negotiations with AGL Energy regarding a new power supply agreement.

CORPORATES
ALCOA INCORPORATED, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, VICTORIA. DEPT OF ECONOMIC DEVELOPMENT, JOBS, TRANSPORT AND RESOURCES, AGL ENERGY LIMITED – ASX AGL, AUSTRALIA. CLEAN ENERGY FINANCE CORPORATION, AUSTRALIAN GREENS, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES, KEPPEL PRINCE ENGINEERING PTY LTD

We’re about to rock

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Original article by John Masanauskas
Herald Sun – Page: 3 : 13-Dec-16

The Victorian Government will contribute $A10m in funding for the Australian Music Vault. The exhibition and education facility will include an Australian Music Hall of Fame, and it will be based at the Victorian Arts Centre. Music industry veteran Michael Gudinski has welcomed the announcement of the Hall of Fame and the fact that it will be located in Melbourne.

CORPORATES
VICTORIAN ARTS CENTRE, MUSHROOM RECORDS PTY LTD, THE FRONTIER TOURING COMPANY PTY LTD

Surpluses stockpiled to protect state for rainy day

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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