Why Victoria’s brutal budget hit should worry big business

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That Victorian Treasurer Tim Pallas has used the same playbook two out of the last three years should concern business leaders. ausbiz auspol

The leaders of Australia’s biggest businesses have every right to shake their heads at the Victorian government’sThey’ll be angry at the way Treasurer Tim Pallas has painted them as sort of pandemic profiteers.They’ll be disappointed that $4 billion worth of payroll tax increases for businesses come on top ofAnd they’ll be bemused that big business is now told to carry the can for the record-breaking, COVID-19 lockdowns that they warned at the time would risk lasting, economic pain.

And while Pallas might describe the payroll tax and property tax hit as temporary, these imposts are set to remain in place until 2033. But what new policy will need funding between now and then? What hole in the budget will need to be fixed? Today, those spending priorities include health and infrastructure at a state level, and aged care and defence at a federal level. Tomorrow’s priorities might include incentives to attract talent to offset the impact of an ageing population, or support for those workers displaced by artificial intelligence. Tackling climate change looms as a multi-generational challenge.

 

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