Victoria bites $117 billion bullet, begins the long march of land tax reform

The Andrews government’s ninth budget is its toughest. The bill from Victoria’s COVID experience, as well as the state government’s ambitious infrastructure spending, has finally come due.

The pandemic has added more than $30 billion to the state’s total net debt, bringing the total to a whooping $117 billion. (New South Wales’s state debt, by comparison, is about $80 billion.)

Victoria’s floods in 2022 have added to the debt. But so too has the Andrews goverment’s borrowing for its $90 billion “Big Build”, encompassing projects from removing Melbourne’s level crossings, extending Melbourne’s underground rail network and building a suburban rail loop.