Victoria's debt and interest costs soar after 12 years of Labor
Net debt nearly doubled pandemic peaks at 24.9% of state income this year, with interest costs rising sharply.
Victoria's Labor government kept debt and spending under tight control in its early years, reducing net debt to 3.9% by 2016-17. The pandemic forced spending to surge, reaching 18.8% of state income.
Victoria's government under Jacinta Allan never restored fiscal discipline as pandemic spending eased. Spending stayed above 16% of state income instead of dropping lower.
Taxes also rose sharply to over 6% of state income. As a result, net debt is forecast at 24.9% this year.
Interest costs have exploded: from around $2 billion a year in the mid-2010s to around $9 billion this year. By 2030, interest payments are forecast to reach nearly $12 billion.
Meanwhile, Victoria's unemployment has worsened relative to the national average. Job participation has improved, but the state now has the worst jobless rate in Australia at 5.2%.
- 24.9% of state income
- Net debt this year
- Around 9 billion dollars
- Interest costs this year
- Nearly 12 billion dollars
- Interest forecast 2030
- 5.2% (worst in Australia)
- Unemployment rate
Why it mattersHigh debt and interest payments drain money that could fund services and schools, while Victoria's sluggish jobs market lags other states.
AustraliaVictorian taxpayers face higher costs as debt servicing explodes, and the state's economy is underperforming on jobs as an election looms.
✓ Claims checked against the source and corrected before publish. checked 2 h ago
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