Property market slump takes $585m chunk out of government coffers

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Housing market slump and public sector wages bill have combined to cut more than half a billion dollars from state funds, budget update released on Friday says.

Victoria’s housing market slump and a burgeoning public sector wages bill have combined to take a $585 million bite out of state government coffers, a budget update released on Friday says.

The decrease in the Andrews government’s operating surplus was in large part due to a drop in revenue from stamp duty and rising public sector employee expenses. The government had previously forecast that a decrease in property sales would impact its budgetary position.as he flagged the possibility of limiting new annual wage increases of 2 per cent for public sector workers – some of whom are due to renegotiate workplace pay deals this year.Victoria’s public sector wages bill grew by $1 billion in the six months to December 31 last year, compared with the same six months in 2017-18, from $11.3 billion to $12.3 billion.

The government said the update showed the Victorian economy was well equipped to deal with future challenges, including a softening property market. Shadow treasurer Louise Staley said the economy was being weighed down by 12 new and increased taxes brought in by Labor. She also criticised the government's decision in November to double the state’s debt level from 6 per cent to 12 per cent of gross state product.

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Poor Ponzi Pallas, he thought he was an economic genius not a dunce.

What Uncle Fester is saying.......next state budget more taxes and big cuts to public service because labor has had a four year spending splurge.

One certainty with the Andrews Govt. Public sector wages bill will always increase.

Bet it doesn’t stop them handing out tax cuts in the next budget 🙄

This will be their reason why stampduty stays. Gov needs the revenue.

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