Victorian budget 2023 hits big business and landlords to pay back COVID-19 debt

Big businesses, holiday-home owners and landlords will be asked to foot the bill for the Victorian government's COVID-19 debt, as part of a 10-year fiscal repair plan unveiled in the state budget. Key points: The COVID levy will impose increased taxes on big business and property owners over 10 years Net debt is still expected to rise to roughly a quarter of the state's economy The state's budget is expected to climb back to a $2.9 billion cash surplus this year, but a $1 billion operating surplus will not be reached until 2025-26 Some jobs in the public service will also be slashed, with between 3,000 and 4,000 corporate and office staff set to go as part of a four-year $2.1 billion efficiency drive. Credit rating agency S&P Global Ratings, which downgraded Victoria's credit rating from AAA to AA in 2020, said the budget's COVID debt repayment strategies were a positive sign but Victoria's fiscal outlook remained "weak" compared to other states. Credit rating agency Moody's said inflationary pressure, billions committed to election promises and capital spending on projects such as social housing and modernising the electricity grid would "elevate execution risk" for the state's budget repair.