Victoria Ranked Australia‘s Least Attractive State for Buisness for Second Consecutive Year
Melbourne, Australia – Victoria has again been identified as the least favorable state in Australia for businesses, according to a new report, raising concerns about the state’s economic competitiveness and its impact on the national landscape. The findings, released today, mark the second year in a row Victoria has held the bottom ranking, prompting criticism from the Business Council of Australia and calls for urgent policy changes.
The report’s assessment comes as Victoria struggles with comparatively weak economic performance, which analysts say has a disproportionately negative effect on Australia’s overall global competitiveness.The continued poor ranking signals a deepening challenge for the state government, which faces mounting pressure to address concerns over tax and regulatory burdens hindering private sector growth. Businesses operating in Victoria are increasingly vocal about the need for policy commitments focused on reducing red tape and lowering taxes.
Business council of Australia chief executive Bran Black expressed disappointment with the results, stating, “Victoria is at the back of the pack for business tax and regulatory settings,” and warned that this approach “drags down businesses and drives investment from the state.” He emphasized the urgent need for policies that actively support private sector-led economic growth.
At a recent announcement regarding a submarine cable laying project, Victorian Premier Jacinta Allan defended the state’s fiscal policies, noting that Victoria collects less revenue per person than Western Australia. She asserted her commitment to supporting both businesses and workers within the state, contrasting her approach with what she characterized as a lack of support from ”commentators from Sydney.”
The ongoing concerns center on Victoria’s higher payroll and land taxes compared to other states. The Business Council’s report underscores the potential for these factors to stifle investment and economic expansion within Victoria, with broader implications for Australia’s national economic standing. The state government is now under increased scrutiny to implement reforms aimed at improving the business surroundings and attracting investment.
