Victorians continue to face higher taxes, poorer services and fewer economic opportunities as new figures reveal the dire state of Victoria's finances under the Allan Labor Government.
Released today, the 2025-26 Budget Update has confirmed since June 30 2025:
- Interest expenses have increased by $154 million to an estimated $7.72 billion for 2025-26 - a blowout of almost $1 million a day.
- Employee expenses have increased by $201 million.
- Total tax revenue from Victorian households and businesses has increased by $418 million.
- Victoria's net debt has grown by $1.7 million an hour and is expected to reach a record $192.6 billion by 2028-29.
Furthermore, the report confirms nine cents out of every dollar of revenue will be spent servicing Victoria's record debt over coming years, as interest expenses are expected to reach $10.47 billion by 2028-29 - the equivalent of $1.2 million an hour.
This year, Victoria will spend more on interest repayments than it does on Ambulance Victoria, Victoria Police and family violence services combined.
This unsustainable fiscal position follows the release of the Independent Review of the VPS by Helen Silver AO, which found: "The payment of interest on debt is now creating inflexibility in the available capacity of the state's budget and will continue to impact output capacity over the medium term."
Following a decade of financial mismanagement under Labor, Victoria has the most debt, the highest unemployment, the highest property taxes, the worst credit rating and is the hardest place to do business of any state in the nation.
Leader of the Opposition and Shadow Treasurer, Jess Wilson, said: "Labor's gross financial mismanagement is the single greatest threat to Victoria's future.
"For more than a decade, Labor's waste and reckless spending - such as $200,000 on office pot plants - has driven our state deeper and deeper into the red.
"Under Labor, Victoria's record debt is growing by $1.7 million an hour - meaning higher taxes, poorer services and an unconscionable financial burden for the next generation.
"As Victoria's alternative Premier, my first priority is getting our finances under control so we can ease cost of living pressures and sustainably invest in the frontline community safety, health and housing services Victorians deserve.
"Labor cannot manage money and Victorians are paying the price."
