Victorian taxpayers will soon be burdened with an additional $12 million to implement the state’s contentious emergency services levy, following the revelation of a significant funding gap. This information emerged during an inquiry where Treasurer Jaclyn Symes faced scrutiny from the budget estimates committee after the most recent state budget announcement.
Symes disclosed that $12 million would be required for administrative expenses related to collecting the levy, contradicting the government’s earlier assurances that all revenue from this tax would be reinvested into emergency services. The tax, which is set to double for homeowners and farmers from 1 July, has faced increased calls for abolition amid growing discontent.
Both Symes and Premier Jacinta Allan have encountered criticism for failing to accurately communicate the overall costs associated with key government projects. One notable example is the ambitious Suburban Rail Loop, for which a staggering $34 billion has been allocated; however, there remains no estimation of ongoing operational costs for the trains once the project is completed.
Allan noted that any potential operating costs would be determined as the launch date approaches. Additionally, department officials admitted they had not yet conducted analyses regarding the ramifications of a possible downgrade to the state’s credit rating, despite facing multiple alerts to manage the state’s financial health effectively.
Victoria’s credit rating has already slipped two levels to AA, with a further downgrade threatening to hamper funding for crucial projects outlined in the budget. Treasury and Finance Secretary Chris Barrett explained that the absence of such modelling is because the department’s current fiscal strategy is designed to preserve and enhance the existing credit rating.
Taxpayers are already on track to bear a staggering $28 million daily in interest to manage a burgeoning $194 billion state debt by 2029. In light of these financial pressures, Symes is scheduled to travel to New York to engage with international credit rating agencies in a bid to improve the state’s financial standing. The future of the emergency services levy and broader fiscal health is likely to remain a contentious issue for the government and its constituents.