Joint Statement - Labor’s tax-and-spend approach chaos hits business confidence

Joint Statement – Labor’s tax-and-spend approach chaos hits business confidence

Richard Riordan, Shadow Minister for Planning and Housing

James Newbury, Shadow Treasurer

Confidence in the Allan Labor Government’s ability to manage Victoria’s economy has plunged to a record low, with new data from the Property Council confirming what every business owner, builder and investor already knows – Labor is toxic for business and investment.

The latest Procore/Property Council Industry Sentiment Survey reveals that the Allan Government’s net performance index has plummeted to -54, its worst-ever result and more than 40 points below the state’s historical average.

Shadow Treasurer, James Newbury, said Labor’s relentless tax raids and war on the private sector are driving jobs and investment out of Victoria.

“Jacinta Allan and her government have attacked the private sector for years – now, businesses are saying enough is enough,” Mr Newbury said.

“At a time when business insolvencies in Victoria are soaring and confidence is at rock bottom, Labor’s answer is always more tax, more red tape and more reckless spending.”

“Like the broader community, the business sector has said loudly and clearly: Jacinta Allan and her government are toxic for Victoria’s future.”

The Property Council report shows that 54 per cent of industry leaders now cite taxes and charges as the most critical issue facing the sector, with Victoria’s property tax regime ranked the most punitive in the country.

Shadow Minister for Planning and Housing, Richard Riordan, said Labor’s attacks on housing and construction are worsening Victoria’s housing crisis.

“Continued tax and regulatory attacks on property owners and the private construction industry have shattered confidence in the Allan Government,” Mr Riordan said.

“In the middle of a housing crisis, we’ve got 20 per cent of newly built homes sitting unsold and property investors fleeing the state. Labor’s endless planning chaos and tax grabs are driving investment interstate.”

“Victoria has become a confidence-free zone – and it’s renters, homebuyers and jobseekers who are paying the price.”

The survey also found:

• Victorian property confidence is 17 points below the national average;
• Expectations for state economic growth in Victoria remain negative;
• Office values are tipped to decline, while commercial projects stall under the weight of Labor’s tax regime.

Mr Newbury said Labor’s economic mismanagement is the real cause of Victoria’s structural budget crisis.

“Labor has taxed and spent its way into the biggest state debt in Australian history – and the only thing growing faster than the debt is the level of business frustration.”

“Every tax hike, every new regulation, every broken promise makes it harder to build homes, grow jobs and deliver the services Victorians rely on.”

The Liberals and Nationals are calling on the Allan Government to use next month’s State Budget to deliver urgent tax relief for Victorian businesses and a clear strategy to restore economic confidence and investment.

“Victoria should be the best place in Australia to start and grow a business – not the hardest,” Mr Newbury said.

Labor can’t manage money, can’t manage the economy and Victorians are paying the price.

Richard Riordan, Shadow Minister for Planning and Housing

James Newbury, Shadow Treasurer