Australian Industry Group is calling for a responsible budget – not an election budget – when the Victorian State Budget is handed down next week.
Victorian Head of Australian Industry Group, Tim Piper, said the State's financial position leaves little room for pre‑election giveaways without further damaging public finances.
"Victoria cannot afford to promise freebies to the electorate without it having consequences," Mr Piper said.
"Any handouts announced in the lead‑up to the election will need to be paid for over the long term. With the State already carrying a significant and growing interest bill, all political parties must be disciplined and realistic in their commitments. And that includes the State Budget next week.
"Industry has been repeatedly asked to dig deeper to fund government priorities, and businesses are jack of it. When I meet with businesses in metropolitan and regional areas, the growing level of government costs imposed are at the top of their agenda.
"Additional taxes, levies or cost burdens are not sustainable and must be avoided. Election commitments must be carefully weighed against the State's mounting debt and the ongoing interest costs Victorians are already carrying.
"New support measures should be genuine investments in Victoria's future – measures that grow the economy, build skills, strengthen the workforce and keep our community safe.
"There are many opportunities for government to deliver real benefits to the community, but that begins with improving economic efficiency and creating the right conditions for businesses to innovate and invest."
Mr Piper said the Government must prioritise certainty and stability for both business and the broader community.
"This budget must recognise the State's difficult financial circumstances while still backing productive economic activity and long‑term growth, showing how the Government intends to reduce the debt level in the State," he said.
