Victoria ranks last again in state business-friendliness scorecard
The Business Council's annual ranking placed Victoria last for the fourth straight year, citing high taxes and complex licensing rules.
Victoria has ranked last in the Business Council's annual state-by-state policy ranking for four straight years. South Australia topped the list again, helped by the lowest payroll tax rates and the simplest licensing system among Australian states.
Victoria scored poorly on high taxes and complicated licensing requirements. The council flagged Victoria's new 'Better Decisions Made Faster' planning laws, set to take effect in 2027, as likely to improve its standing once implemented.
The council assesses states on payroll tax rates, land taxes, planning approval speed, licensing complexity, and workers' compensation costs. Queensland and Western Australia ranked sixth and seventh, while New South Wales came fifth despite planning reforms.
The Business Council chief said Victoria faces 'serious challenges' from 'high taxes and unnecessary regulation' that slow growth and raise unemployment. Both major Victorian parties have pledged payroll tax relief ahead of the November state election.
- 4 consecutive years since 2023
- Years last-ranked
- November election
- Election timing
- Bran Black
- Business Council chief
Why it mattersThe ranking influences where businesses invest and choose to expand, affecting job creation and economic growth across states.
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