Victoria's latest budget: A mixed bag for hospitality
The recently unveiled Victorian state budget has sparked considerable discussion within the business community, particularly among those in hospitality. Chris Lucas, who oversees venues like Chin Chin and employs 2500 staff nationally, has expressed his strong disapproval, calling the budget "extremely disappointing" for small businesses.
Lucas criticised Treasurer Jaclyn Symes's fiscal strategy, pointing to the state's projected net debt of $194 billion by June 2029 and an anticipated annual interest repayment of $10.5 billion within three years.
“Rather than reduce our debt with the increased GST take or remove taxes it’s being wasted on more frivolous expenditure to buy votes,” Lucas told The Australian.
“Victoria faces an unprecedented challenge after ten years of wasteful spending and some of the highest taxes in the nation. As a consequence our economy is at a standstill with little or no growth and a declining standard of living.”
The popular restaurateur accused the state government of misrepresenting the “no new taxes” claim, pointing to a doubling of the emergency services levy, which he said would negatively impact farmers, small businesses, and households. He also highlighted the increased and expanded congestion levy, which he believes will likely be passed on to consumers and businesses.
“With over 60 new taxes and levies introduced in the last few years this state has now become an investment no go zone and is causing enormous damage to our communities and small businesses.
“The government seems to not listen or care enough about the crisis brought about by their policies which is terribly distressing for so many Victorians.”
Despite these criticisms, the budget forecasts a slim operating surplus of $600 million for 2025-26 and did not announce new taxes. Revenue is expected to be bolstered by the emergency services fire levy, projected to generate $1.6 billion annually, and the congestion levy, which will increase city parking prices. Overall, tax revenue is anticipated to reach $48 billion by 2028-29, a substantial increase from $36.8 billion in 2023-24.
Tim Piper, head of the Australian Industry Group, said that while he doesn't foresee a recession, the budget offered “very little...that engenders confidence for business”. He noted that the $240 million funding is insufficient within a $107 billion budget, suggesting it had characteristics of an election budget. Piper reiterated that the government's “no new taxes mantra fails to recognise the additional taxes already announced that businesses will pay”, and considered the $300 million for business support inadequate compared to cost-of-living aid.
Jonathan Jackson, 21st May 2025
