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State Budget bleak for south-west

TUESDAY evening’s State Budget delivered by treasurer, Tim Pallas, covered a range of regional concerns, but the Opposition have claimed there was little to celebrate outside the metropolitan region from the assembly of economic items.

In selling the budget, the government pointed to unemployment of below four per cent as a positive - “which hasn’t happened for nearly 50 years” - and especially highlighted the regional rate of 3.7 per cent, but conceded the Real Gross State Product (GSP) per person was “expected to slow to 1.5 per cent in 2023-24 as high inflation and interest rates weigh on the economy”.

$32 million was announced to retain and attract teachers across regional Victoria, including an allowance for pre-service teachers to undertake placements in regional and remote schools.

$1m will provide scholarships to encourage final year speech pathology and occupational therapy degree students, and students undertaking a Certificate IV in Disability, to work in regional Victoria.

There was $162m to build three new public sector residential aged care facilities, but none are in the south-west (Cohuna, Maffra and Numurkah); however, there was $42m to ensure public sector residential aged care services maintain nurse-to-patient ratios and $50m to continue operating local public health units across regional Victoria.

There was $400m for another round of the Power Saving Bonus and $190m to continue to cap regional public transport fares at the same price as metropolitan fares.

The budget also earmarked $601m to build another 23 new Victorian-made VLocity trains, with $219m provided to deliver additional train services across Victoria, including extra weekend services on major regional train lines.

Tourism was addressed with $3.9m to halve camping fees at national and state parks and the Tiny Towns Fund will also provide $10m in grants to eligible local organisations and councils in towns with fewer than 5000 people.

There was $31m to back producers in the food and beverage industry through the continuation of grant programs, an additional $17m for enhanced biosecurity protections and $677m to meet the emergency response and recovery needs of flood-affected communities.

The government pointed to an overall $5 billion invested in regional Victoria, but the negative reaction from rural stakeholders was swift and strong.

Victorian Farmers Federation president, Emma Germano, said regional Victorians were being made to pay as a consequence of the government’s decisions.

“Regional Victoria contributes almost 15 per cent to the state’s economy and is the home of about a quarter of all Victorians, but has been left reeling with only five per cent investment in the State Budget,” she said.

Agriculture has also been hit hard with cuts of $232.5m, or almost 34 per cent, from last year.

With an overall $1b cut from health following a $2b cut last year, Lowan MP, Emma Kealy said she was outraged funding for several key health projects in the Lowan electorate was omitted, listing Hamilton Base Hospital ICU and Emergency Department and much needed upgrades to the Mortlake campus of the Terang-Mortlake Health Service and the Willaura campus of the East Grampians Health Service.

“There is virtually no funding for new capital projects in Lowan, with most projects included in (Tuesday’s) budget having been previously announced by Labor, and funding now being drawn out over several years,” she said.

Regional Cities Victoria (RCV) criticised the discontinuation of the Regional Jobs and Infrastructure Fund (RJIF) which has made over $100m available annually through the grants program since it was established by the Bracks Government more than two decades ago.

RCV spokesperson, Cr Shane Sali, said the RJIF has been used to create jobs, help businesses relocate to regional cities, build community centres, and make regional Victoria a better place to live, work and visit.

“It is incredibly disappointing that this funding has not been continued and there is no support available for local infrastructure projects in our growing regional cities,” he said.

Despite ongoing deterioration of rural roads and highways, road asset management has now experienced an almost 45 per cent cut since 2020 (down from $702.2m to just $441.6m in the last year alone) and regional development more than 80 per cent in the same period.

Also, from next year, those with second homes or investment properties will pay a new flat rate tax of up to $975, plus an additional levy based on land value.

But the threshold for Victoria’s land tax will be lowered from $300,000 to $50,000.

Mr Pallas said about 860,000 landowners would be affected by the land tax change and claimed it was aimed at businesses and property owners who had benefitted from the COVID-19 period.

The Opposition said Victoria was broke with state debt projected to climb to $171.4b by 2026-27 and interest payments to more than double to $22m a day.

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