Victoria’s 2023-24 budget is not a big surprise for the local community because major initiatives are already announced during the campaign. The priority of the budget is to address the state’s mounting debt generated during the Covid-19 pandemic.
However, big businesses and landlords will never get much in this budget, as they are responsible for repaying a major portion of the state debt. The government argues that it is good for those who get benefits during a pandemic to contribute towards repaying the borrowed funds.
Small businesses will get benefits from a raised payroll tax-free threshold, exempting more businesses and reducing the tax burden for others in the budget. Parents who have three and four years olds get the benefits of free kindergarten education which fulfills a major campaign promise. Apprentices will also receive free car registrations and a healthcare system, especially mental health services.
Investment property owners, approximately 860,000 individuals, will also face increased taxes because of a lower land tax threshold and the addition of fixed charges. The budget also affects the public sector as they will experience job cuts, and private schools will have their payroll tax exemption reduced.
Overall, the budget of Victoria 2023-24 aims to address the state’s debt while implementing measures to support small businesses, early childhood education, apprentices, and mental health services.