Statement from the Shadow Treasurer - Peak bodies confirm Labor is damaging our economy

Statement from the Shadow Treasurer – Peak bodies confirm Labor is damaging our economy

James Newbury, Shadow Treasurer

Two of Victoria’s pre-eminent peak bodies, the Victorian Chamber of Commerce and Industry and Master Builders Victoria, have released budget submissions, calling on the Allan Labor Government to commit to significant economic reform, given the detrimental impact of high taxes, regulatory burdens and economic instability in Victoria.

The Victorian Chamber of Commerce and Industry has sharply criticised the Labor Government’s financial mismanagement in their submission, stating, “Our fiscal position is problematic. This creates a heavy burden of taxation and means Victoria is at risk of losing its competitiveness and attractiveness as a place to do business.”

The Chamber of Commerce and Industry further highlighted Victoria’s record levels of General Government Sector gross debt, with gross debt forecasted to soar to $228.2 billion by June 2028, emphasising the urgent need for “sound financial management” and “a clear and well defined long term financial plan is required”.

The Master Builders Victoria echoed these sentiments, stressing the severe issues within the building and construction sector. In their submission, the Master Builders pointed out, “persistent challenges—including regulatory complexity, workforce shortages, and the rising cost of construction—continue to impact the industry’s capacity to meet demand.”

Alarmingly, the Master Builders Victoria reported a worrying 10.7 per cent drop in detached house building approvals in the last three months of 2024, compared to the previous year, highlighting that instead of the Allan Labor Government meeting their promise to deliver 80,000 homes each year, we are going backwards. As the Master Builders have further pointed out: “just under 53,000 new homes received approval across the state in 2024.”

Both organisations have urged immediate action from the Allan Labor Government, including:

• The Victorian Chamber calls for a commitment to stabilise and reduce state debt, commit to no new taxes (or levies) on businesses, and substantial cuts to the regulatory burden.
• Master Builders Victoria has called for urgent reform of property-related taxes and increased transparency and efficiency in government tendering processes.

Shadow Treasurer, James Newbury said: “The two pre-eminent peak bodies in Victoria have confirmed what we know, the Allan Labor Government is mismanaging our money and damaging Victoria’s future”.

“The economy is drowning in debt, businesses are crippled by excessive taxes and red tape, and our vital construction sector is on its knees. The Allan Government’s economic incompetence is not only costing Victorians billions in debt repayments but is directly impacting housing affordability, employment opportunities, and our overall competitiveness.”