It’s a mixed bag for agriculture and regional Victoria, with question marks remaining over country road funding.
The Victorian government has been slammed for comparing its skyrocketing debt to people struggling to pay their mortgages.
It comes after Victorian Premier Daniel Andrews tried to blame its debt on Reserve Bank Australia rate rises.
Economists have said it’s disingenuous for the state government to align itself with people who’re struggling to pay their personal mortgages.
This is ahead of what’s expected to be a “horror” state budget to be handed down in Victoria on Tuesday.
In his speech delivered to state parliament this afternoon, Tim Pallas said the state budget invested more than $5 billion in regional projects.
But with its debt reduction focus, the 2023-24 financial blueprint contained far fewer regional infrastructure projects compared to last year’s pre-election prospectus.
Victorian Treasurer Tim Pallas in his office with the 2023-2024 State Budget report. Picture: David Caird
Prior to his parliamentary speech, the Treasurer told reporters his budget for the coming financial year was focused on paying down debt incurred during the 2020-21 coronavirus period.
“This has been the most difficult budget I’ve had to frame and this is my ninth budget now,” Mr Pallas said.
“This is the start of a new era, a post Covid era. In many ways we’re paying off our Covid credit card debt.
“These measures are temporary, they’re targeted and above all, they’re responsible.
MORE CASH FOR FLOOD RECOVERY
Rebuilding regional infrastructure following the 2022 floods flows into the new financial year with $677 million in 2023-24 to continue repair work to infrastructure damaged across central Victoria.
A young family being rescued after their home was flooded waist-deep in water during the floods. Picture: Jason Edwards
As part of the $677 million expenditure, cash will be directed to mental health services in flood-hit districts; cash for councils for flood recovery programs; and covering emergency services response costs.
Specific flood projects include the replacement of the Rochester police station and repairs to the SES centres in Heathcote and Rochester.
“We provided immediate support to flood-hit communities but clearly there is more work to do,” Mr Pallas said.
AGED CARE AND HEALTH FUNDING
New aged care projects gained a nine-figure package with $162 million to build three new public sector residential facilities in Cohuna, Maffra and Numurkah.
There is also a $44 million package for the acquisition of position emission tomography (PET) scanners for Ballarat, Shepparton, Wangaratta and Warrnambool.
One of the largest single health projects was a $30 million allocation for a new ambulance station at Armstrong Creek – a suburb sandwiched between Torquay and Geelong’s southern suburbs.
Also in regional health spending is $11 million for scholarships to encourage final year speech pathology and occupational therapy degree students in regional locations.
QUESTION MARK OVER ROADS FUNDING
In transport expenditure, $601 million has been allocated to construct 23 new VLocity trains for the V/Line network.
The Treasurer also announced $219 million for additional train services across Victoria, with patronage already rising after train fares were capped earlier this calendar year.
The Prairie-Rochester Road is one of many damaged by the 2022 floods and is significantly potholed. Picture: Zoe Phillips
However, on regional roads funding – the budget papers were opaque with a ‘to be confirmed’ disclaimer allotted to repairing highways and regional arterials.
CASH TO TACKLE TEACHER SHORTAGES
In education, $32 million has been committed to attracting and retaining teachers in regional Victoria.
The regional teacher cash package includes allowances for pre-service teachers to undertake placements in rural classrooms.
Since the Andrews Government came to power in November 2014, several technical schools have been constructed across regional Victoria- usually attached to existing TAFE sites.
This coming financial year, $26 million will be directed to construction of tech schools in Warrnambool and Wangaratta.
More than 40 schools statewide will receive upgrades next financial year but only a handful are located outside the metropolitan boundary including Ararat Secondary, Moe Primary and Wonthaggi Primary.
ENERGY TRANSITIONS
Also in connection to last year’s election campaign commitments is the pledge to resurrect the State Electricity Commission.
More than $7 million was allocated to the Latrobe Valley Authority’s operations to “support economic transition in the region.”
Victoria’s Yallourn coal-fired power station will shut down in 2028. Picture: Jason Edwards
At the 2022 election, Premier Dan Andrews made a revived SEC a key part of his bid to reclaim the Morwell electorate for Labor.
National Party candidate Martin Cameron was ultimately successful in winning the swing constituency but Mr Andrews said the government would stick to its pledge of establishing an SEC office in Morwell.
In broader infrastructure funding, $10 million has been allocated to the Tiny Towns Fund.
The fund is distributed to rural councils and community organisations for towns with fewer than 5000 residents.
Meanwhile, the Treasurer outlined changes to payroll tax in a bid to stimulate business growth heading into the 2024-25 financial year.
From July 2024, the payroll tax free threshold will be lifted from $700,000 to $900,000.
At the start of the following financial year, the payroll tax free threshold will again be lifted to $1 million.
“Victoria will be the first state in the nation to remove this handbrake to business growth,” Mr Pallas said.
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