Released today, the Auditor-General's Report on the Annual Financial Report of the State of Victoria: 2024-25 has confirmed:
- The General Government Sector (GGS) suffered an operating loss of $2.6 billion in 2024-25 - $400 million worse than budgeted.
- Victoria's gross debt to GSP ratio has reached 30 per cent - higher than every other Australian state.
- Debt continues to grow faster than both the economy and revenue.
- Interest expense is increasing faster than revenue and is expected to reach 9 per cent - or $10.6 billion - of total operating expenditure by 2028-29.
- The Allan Labor Government has failed to report on the progress of it's 'COVID Debt Repayment Plan' since its introduction in 2023-24.
- The Allan Labor Government contributed $221 million less than budgeted to the State Superannuation Fund.
- Significant emerging financial risks, including the growing indebtedness of the state, rising interest and debt refinancing costs, unplanned infrastructure cost escalations and increasing employee costs.
The Auditor-General also found "over the last 12 years, financial measures and targets have been gradually revised from specific and quantifiable to less-specific targets" highlighting the continued deterioration of financial transparency and accountability under Labor.
The report has confirmed over the past six years, the GGS has now accumulated more than $50 billion of operating losses, as the most recent 2024-25 Financial Report confirmed Victoria's net debt is growing by more than $2 million an hour.
Leader of the Opposition, Jess Wilson, said: "This report confirms Labor has lost control of the books.
"Under Premier Jacinta Allan, Victoria's financial position is rapidly deteriorating with persistent operating losses driving our state deeper and deeper into the red.
"Labor's waste, reckless spending and ever-increasing debt means higher taxes and less money for frontline health, housing and community safety services.
"As Leader, my first priority is to get the budget back under control so we can lower cost-of-living pressures on Victorians and begin to restore economic opportunity to our state."
Shadow Minister for Finance, Bridget Vallence, said: "This is a scathing report that reveals the real-world consequences of Labor's decade of financial mismanagement.
"Only a Wilson Liberal and Nationals Government will end Labor's era of waste and reckless spending and sustainability invest in the frontline services Victorians need and deserve.
"Labor can't manage money, and Victorians are paying the price."
