VCCI and CfM Call for Economic Reforms
Criticism has been directed at the 2026 Victoria State Budget by the Victorian Chamber of Commerce and Industry (VCCI) and the Committee for Melbourne (CfM). They claim it fails to enhance the state’s business competitiveness.
These organisations highlight that, while the budget provides some cost-of-living support and targeted investments, it does not sufficiently tackle deeper economic challenges. Rising debt levels remain problematic, with ambiguity about when they will peak.
Compared to other states, Victoria’s economy underperforms. Weak business investment growth and declining productivity are significant concerns. Meanwhile, the Gross State Product per capita continues to fall, pressuring families and businesses. VCCI Chief Executive Sally Curtain stated, "Budgets are about choices, and business wasn’t chosen today. This budget addresses some cost-of-living pressures, but it does not deal with the root causes that are making life harder for businesses and households."
Concerns about Victoria’s economic performance, particularly regarding business investment and productivity, have arisen due to the budget’s approach. It lacks measures to reduce taxes and regulatory pressures, which hinder investment.
VCCI and CfM urge the government to stabilise debt, reduce taxes, ensure affordable energy, unlock housing supply, and enhance skills and workforce participation.
Limited action has been taken to ease the cumulative burden of taxes and regulations on business, despite this being a key barrier to investment and growth. The lack of commitment to these areas risks Victoria falling behind more competitive jurisdictions.
Committee for Melbourne Chief Executive Scott Veenker commented, "This is a Budget that will feel like a missed opportunity for many Victorian businesses. There are positive investments in services and infrastructure, but the broader economic settings remain a concern."
A robust private sector is necessary for funding essential services. Without it, economic growth may slow, leading to declines in investment, jobs, and incomes. Households could face increased pressure if these issues persist.
Addressing Victoria’s economic problems requires urgent government attention. This involves taking steps to stabilise and reduce debt as a share of the economy, provide certainty in reducing tax burdens, and deliver reliable, affordable, and secure energy.
Unlocking housing supply through meaningful planning and tax reform, backing skills, education, and workforce participation are also critical. Partnering with the private sector to unlock investment and productivity is essential for long-term growth.
