The Andrews Labor Government has backed its positive plan for all Victorians, with a Budget that is underpinned by strong surpluses, while delivering tax cuts and the schools, hospitals, transport and services our growing state needs.
Building on strong economic management and five years of above-trend growth, the Victorian Budget 2019/20 delivers a $1 billion surplus in 2019-20, with surpluses averaging $3.4 billion a year over the forward estimates.
In a win for local jobs, this Budget again includes tax cuts for business, with the payroll tax-free threshold to be increased by $50,000 to $700,000 by 2022-23.
Regional payroll tax rate will also be cut to 25 per cent of the metropolitan rate by 2022-23, so that eligible regional businesses continue to benefit from the lowest payroll tax rate in the nation.
Regional Victoria will also benefit from a land transfer duty concession, starting at 10 per cent from July 1, 2019, it will increase by 10 per cent annually to eventually give a 50 per cent discount from 1 July 2023.
Since coming to Government, the Victorian economy has created 450,000 jobs and the Budget continues this job creation boom through a new dedicated $150 million Victorian Jobs and Investment Fund.
As promised, this Budget continues to invest in our major infrastructure projects, such as North East Link, Melbourne Airport Rail Link and the removal of a further 25 level crossings, with our infrastructure investment to average $13.4 billion a year over the forward estimates.
To fund these three major transport projects, the Government is meeting its pledge to stabilise net debt at 12 per cent of gross state product over the medium term.
We are building these projects because they are vital to keep our state moving and they create thousands of jobs. In Victoria, one in 10 jobs are in the construction industry, with our major projects creating 115,000 jobs alone.
Since the Labor Government was first elected, Victoria’s economy has contributed almost one-third of national economic growth – well above its share of the country’s population. This has been a job-driven economic boom – with Victoria contributing more than 40 per cent of all full-time jobs created in the nation.
This is a Budget that keeps our promises and delivers for all Victorians.
As stated by Treasurer Tim Pallas
“This is a Budget that keeps the promises we made to the Victorian people – it delivers surpluses, funds the projects that Victorians voted for and need, while cutting taxes to help business.”
“We are making the investments that our state needs now and for the future – including in our major projects that create thousands of jobs, as well as record funding for schools, hospitals, and the vital services that all Victorians rely on.”