The Winners and Losers in the 2022 Victorian Budget

The Victorian Government delivered the 2022-23 State Budget on Tuesday 3 May 2022, supporting the economic recovery through the ‘Pandemic Recovery Plan’.

This year’s State Budget focuses on Victoria’s economic growth and recovery. The Government is determined to provide further opportunities and create more jobs for people, to build booming places and regions as well as to support inclusive communities.

Victoria Delivers ‘Pandemic Recovery Plan’ Budget

Victorian Treasurer Tim Pallas MP gave over Victoria’s 2022-23 financial plan on 3 May 2022. The Budget aims to help Victorians to recuperate from the effect of COVID-19.

Zeroing in on medical services, work opportunities, education and regions, the financial plan incorporates an aggregate of $22.2 B in new spending initiatives in the lead up to the Victorian State Election on November 26.

With a budget shortfall this time of $17.6 B, debt is anticipated to be more than $167 B by the year 2025 to 2026 which is equivalent to 26.5% of the state economy. In any case, $15 B in additional taxes from the booming real estate market (notice the increase in tax rates in the previous year) has assisted the budget bottom line, alongside with a projected population growth by 5.5% this financial year and 3.25% next year as international migration is expected to reopen.

Here are the winners and losers in the Victorian Budget.

BUDGET OVERVIEW:

This summarises the State’s economic and fiscal view, and the Government’s strategic priorities and objectives for 2022-2023.

• $12 B ‘Pandemic Repair Plan’ for medical services, incorporating $2.9b in health infrastructure, $2.4 B for additional emergency services and new staff, $1.5 B for medical procedures, and $1.3 B for psychological well-being or mental health initiatives
• $2.6 B of investment in this year’s budget for the upcoming Commonwealth Games in 2026
• $1.7 B for the transformation of Melbourne Arts Precinct
• $1.8 B to upgrade 13 new schools and buildings
• $1 B for low-interest credits and guarantees for up to 6,000 new social and affordable housing projects
• $383 M to deliver transport infrastructure as part of the Big Build
• $120 M Victorian Industry Fund for the promotion of advanced, high-level manufacturing including $20 M budget to draw in investors in Victoria
• $30 M investment in a Regional Jobs and Infrastructure Fund
• $28 M over the next 2 years to help and improve the construction industry.
• $246 M to support the Sick Pay Guarantee pilot, with extra $163 M allocated for the Test Isolation Payment and Pandemic Leave Disaster Payment
• $109.9 M budget allocation for skills and training

Moreover, the 2022-2023 Budget incorporates these initiatives to increase revenue:

BALANCING GAMBLING TAX

The budget introduced changes with the gambling tax rates. This is to guarantee a level playing field for all operators.

MOTOR VEHICLE DUTY EXEMPTION FOR WHEELCHAIR ACCESSIBLE COMMERCIAL PASSENGER VEHICLES

The motor vehicle duty exemption concerning the sale/transfer of wheelchair accessible commercial passenger vehicles is aimed to encourage new operators in the Program. This is aligned and consistent with Recommendation 8 of the Inquiry into the Multi-Purpose Taxi Program (Program) Report published in April 2022.

WHAT’S NEXT?

Emergency services is the major focus in the 2022-23 election-year Victorian budget. Contact us today at Success Accounting Group to help you navigating the implications and opportunities of this Budget for you and your business.

Book in your Tax Planning now with less than 50 days left before the end of financial year.

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