Dec 12, 2024, 1:56 AM
Dec 12, 2024, 1:56 AM

Victoria's new economic plan fails to address business concerns

Highlights
  • Victoria's Economic Growth Statement was unveiled to address economic stagnation after being labeled the least business-friendly state.
  • The plan outlines 40 initiatives focused on reducing regulatory burdens and enhancing business investment.
  • Critics emphasize that while the intent is positive, concrete actions are necessary to ensure successful implementation and real economic growth.
Story

In Australia, on December 10, 2024, the Victorian government announced an Economic Growth Statement aimed at revitalizing the state's struggling economy. This initiative was introduced shortly after Victoria was ranked the least business-friendly state in the country. The plan includes 40 initiatives developed with industry cooperation, intended to tackle some of the pressing issues Victoria faces. Premier Jacinta Allan emphasized the need for streamlining processes for hospitality businesses while promising quicker environmental approval processes. Additionally, the government aims to facilitate investment by creating a centralized portal for investors and unlocking 6,000 hectares of industrial land, valued at approximately $9.5 billion. They have also allocated $20 million towards the Victorian Industry Development Fund, targeting key sectors like advanced manufacturing, health technologies, and digital technology, among others. Other promised changes include slashing red tape that could save businesses up to $500 million over five years and reducing the number of regulatory bodies from 37 to 18 by 2030. While there are positive receptions around the government's intentions, many experts express skepticism regarding the depth of the measures proposed. Critiques highlight that, although the Economic Growth Statement acknowledges the state’s “image problem,” it does not adequately address deeper systemic issues affecting business growth in Victoria. Bran Black, CEO of the Business Council of Australia, stated that such measures were a positive step but underscored the need for practical implementations. He pointed out the importance of lowering payroll taxes and addressing regulatory licensing as pivotal for achieving long-term improvements in the state's business landscape. Despite recent growth in Victoria's gross state product, much of this was attributed to population increases rather than effective economic policy. In unveiling the plan, Premier Allan stressed the importance of making Melbourne a business magnet, which she embraced during the launch of the Economic Growth Statement. However, critics are urging that moving forward requires substantial actions to rebuild trust in the state's economic direction and achieve meaningful shifts in how businesses operate in Victoria, making the economic landscape more favorable for investors and entrepreneurs alike.

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