Victorian budget 2018: Treasurer Tim Pallas grants tax cuts to business, free TAFE to students

Updated May 01, 2018 16:25:54

Photo: Victorian Treasurer Tim Pallas said the 2018 budget was his "favourite". (ABC News: Danielle Bonica)

Related Story: Treasurer aims to 'dazzle' burbs and bush with budget bag of goodies

Map: Melbourne 3000

Free TAFE courses for tens of thousands of students, tax relief for regional businesses and a record investment in mental health services have headlined the Victorian Government's election-year budget.

With most of Labor's billions for schools, hospitals and infrastructure already announced ahead of Tim Pallas's budget, there were few surprises waiting, and the pitch from the Treasurer is designed with suburban and regional voters in mind.

The Government will make 30 "high-priority" TAFE courses free from next year, under a $172-million plan to get more Victorians trained.

Twenty of the non-apprenticeship courses have been identified, and another 10 courses will be announced in future.

Eighteen "Apprenticeship Pathway" courses will also be offered for free.

The budget also includes $303.5 million for new classes and places.

"We need to shed ourselves of this view that there is only one path to excellence in the workforce, an academic one," Mr Pallas said.

"We have to recognise that there are people out there who have skills and aptitudes who should be appropriately rewarded, and the Government needs to play a substantial part in skilling those capacities."

'A fantastic opportunity'

Victorian Council of Social Services chief executive Emma King said offering free TAFE courses was "an absolute winner".

"We currently have 10,000 students who drop out of school every single year," she said.

"So we've got so many students who will be able to undertake TAFE courses.

"These are those who are previously lost to our system in many cases, and we are giving so many of our young students, as well as our older people, a really fantastic opportunity to train in a way that they simply haven't had for years."

The Government says its investment in infrastructure construction, disability services and family violence prevention has created strong demand for workers with the skills taught in the selected TAFE courses.

Treasurer Tim Pallas's fourth budget outlines a surplus of $1.4 billion and a massive infrastructure spend, while reducing state debt to 4.6 per cent.

It outlines more than $13 billion in infrastructure spending, including $4.2 billion for health, $4.3 billion for regional Victoria and $1.25 billion for schools.

"This is a Labor budget that invests in the projects that our state needs and the people we need to deliver them," Mr Pallas said.

Hospital crisis hubs

Photo: There will be dozens more mental health beds in Victoria's hospitals. (ABC News: Danielle Bonica)

The budget outlines a $705-million package for mental health and to tackle the scourge of methamphetamine ice. That includes $232 million for 89 additional mental health beds.

It also spells out $101 million for six emergency department crisis hubs, including five in Melbourne, to respond to patients with drug, alcohol and mental health issues.

Mr Pallas said spending on mental health recognised the impact it had on many Victorians' lives.

"Putting in place these arrangements will, in our view, make a very substantial difference," he said.

"Being able to provide more mental health beds, being able to provide access to appropriate counsellors and mental health and support workers I think will be a key part of the strategy."

Payroll tax relief

While spending big on infrastructure, the Andrews Government appears to be listening to business groups, announcing it will lift the payroll tax-free threshold to $650,000.

In regional areas, payroll tax will be slashed to 2.425 per cent, which is half the metropolitan rate.

Ahead of today's budget, Treasurer Tim Pallas pledged there would be no new taxes and charges in the budget.

The budget papers spell out a strong financial position, with average surpluses of $2.5 billion a year over the next four years built on population growth and continued strength in the property market.

Population is expected to grow by 2.2 per cent in 2018-19 before levelling out to 2 per cent from 2020-21.

The Government boasts that it has created 333,900 jobs since the Andrews Government came to office in November 2014.

Public service costing more

There has also been growth in the public service workforce, something the Opposition is likely to seize on, with public sector wages up more than 10 per cent.

Photo: The Government said extra police had contributed to public service costs. (ABC News: Stephanie Anderson)

Mr Pallas defended the increase in employee spending.

"This is about providing services to a growing population," he said.

"In the year to June 2017 we've seen the Government employ a significant number of frontline staff including something like 3,000 healthcare workers, 1,500 teachers and staff, a thousand police and emergency services staff.

"We've employed a lot of people … it would be a disservice to the community if we didn't."

Topics: states-and-territories, government-and-politics, budget, community-and-society, melbourne-3000, vic

First posted May 01, 2018 13:12:07