Wednesday, 31 May 2023

Department of Treasury and Finance

Budget papers 2023–24

Gaelle BROAD (Northern Victoria) (17:24): The report I wish to speak on is the state budget papers 2023–24. We are all part of history in this chamber: we have witnessed the worst state budget in Australia’s history. Under Labor Victoria is going broke. Some are saying this budget is worse than the disastrous Cain and Kirner years. The government has described this budget as their most difficult yet. Well, budgets are not easy. Ask anyone who manages a household budget; it is not easy to spend less than you earn. Managing the state budget is not the same as buying a house. It is a significant responsibility because the state of the economy has a direct impact on every Victorian. Under Labor Victoria’s credit rating has dropped from AAA to AA. This government continues to waste taxpayers funds and somehow managed to create a budget that hikes up taxes and levies, yet the debt continues to climb.

Victorians pay more tax than any other state or territory, and instead of reducing wasteful spending, this government has introduced new taxes. Since Labor was elected nine years ago, Victoria’s tax take is set to double. Under Labor Victorians pay more and get less. We have the highest debt of any state ‍– more than Queensland, New South Wales and Tasmania combined. In 2014 our state debt was $22 billion. Now it is over $100 billion and is forecast to reach $171 billion by 2026. We are now paying over $10 million a day in interest, and that will rise to $22 million a day by 2026. The government often refers to free kinder and free TAFE, but nothing is free. All Victorians are paying for it. Only this government could manage to cut 4000 public sector jobs and end up with a wage bill that goes up a further $5 billion over the forward estimates.

There is little good news in this budget for regional areas, so it is no surprise that no regional paper was published. The recent state budget reduces funding in key areas, including regional roads, health and agriculture. The regional development budget has again been cut – halved – in this year’s budget. Since 2020 it has been slashed by 80 per cent. Victoria’s road maintenance funding has been cut by 45 per cent since 2020. This government has bypassed regional Victoria. As the Kilmore and Shepparton bypass projects missed out on funding in the budget, large trucks are going to continue to drive right through their main streets.

Labor has cut a further $1 billion from the health system after cutting $2 billion in last year’s budget, despite the crisis that we are experiencing. I spoke to a lady in Bendigo who attended Bendigo Hospital with up to 50 people in the emergency waiting room and ambulances lined up as drivers could not leave because no beds were available. There is no plan in this budget to solve regional Victoria’s health workforce issues, and more people are going to be on the waiting list. Major hospital redevelopments and upgrades that are badly needed in regional towns like Mildura and Shepparton have not been funded. Agriculture funding has also reduced by 34 per cent on last year. In relation to the Commonwealth Games, the government has dropped the baton. The games are less than three years away, and we need further information to ensure these games leave a legacy.

Sadly, I have raised this issue a number of times in the Parliament, but there is nothing for stroke support centres. The Bendigo centre along with Shepparton and other centres have closed their doors. I just want to acknowledge the local staff in Bendigo who are giving their time in a voluntary capacity over the next six months to support stroke survivors and their families. When I see cost blowouts and money wasted by this government, I am very frustrated when groups like this do not receive the support that they deserve. Stroke can certainly happen to any one of us, and it was very sad to read in the Bendigo Advertiser just today about Harriet Caldwell, a teenager from Bendigo that experienced a rare spinal stroke on 4 May and has been told she may never walk again. It is encouraging to learn that she has had some movement with physio treatment, and the local community has already raised $50,000 to support the family. It is a tough road now, travelling between Bendigo and Melbourne to get help, and we wish Harriet well with her recovery.

This budget has also placed further pressure on the housing sector – $1 billion in taxes on property will flow directly through to higher rents, and there is no stamp duty relief for first home buyers in this budget. Businesses have been hit with WorkCover premium increases, and schools have been caught off guard, forced to pay payroll tax to contribute another $420 million. A coalition government will repeal this payroll tax in 2026 if elected to government. It is a budget that shows this government plays favourites, and life is only going to get harder under Labor. I am looking forward to a change of government in 2026.