Victoria faces mounting economic challenges as business confidence reaches historic lows and debt concerns dominate the political discourse ahead of the state election on November 28. Business owners across Melbourne are expressing deep unease over regulatory pressures, tax burdens, and overall economic conditions that are increasingly inhibiting investment and growth.
Michael Haycroft, a 61-year-old entrepreneur from Carrum Downs in Melbourne’s southeast, exemplifies the struggle many local business owners face. With land tax costs around $20,000 annually and a business environment described as the weakest in the country, Haycroft is divesting two of his three companies as he approaches retirement. “Confidence is the lowest I’ve seen in my life,” he said, citing heavy regulation and a lack of policy support for entrepreneurial risk-taking. "It just puts the brakes on a business."
This economic uncertainty is reflected in broader data showing a sharp rise in insolvencies, which nearly doubled from 2,863 in 2023-24 to 4,100 in 2025-26. Victoria now accounts for 29 percent of all business failures nationally, surpassing its 26 percent share of the population. Additionally, Melbourne’s Central Business District currently holds the highest office vacancy rate among Australian capital cities, with about 20 percent of office space unoccupied.
In response, a number of pro-business advocacy groups have intensified their efforts to pressure politicians to address the state’s financial sustainability. Amplify, an apolitical campaign group founded by Seek co-founder Paul Bassat, calls for a credible plan to reduce Victoria’s estimated $200 billion debt. Bassat’s bipartisan board includes prominent figures such as former New South Wales Premier Dominic Perrottet, former Queensland minister Kate Jones, and Tabcorp CEO Gillian McLachlan. Bassat warned that the upcoming election risks turning into a "spendathon" without a strong focus on debt reduction.
Other groups, such as FixVictoria—which received support from the Liberal-aligned Cormack Foundation—and BetterVictoria, have also launched advertising campaigns targeting issues including debt, crime, overregulation, and public spending priorities. BetterVictoria promotes increased investment in infrastructure alongside crime reduction and cost-of-living measures.
Premier Ben Carroll, who assumed office following Jacinta Allan, has pledged reforms aimed at business relief. He has announced plans for a land tax cut in the first budget and revealed a policy to delay an absentee owner tax on newly constructed but unoccupied homes for up to two years. The government has also committed to reducing reliance on public service consultants, removing certain non-essential public expenditures, and simplifying late-night trading licenses.
Carroll’s approach contrasts with his predecessor’s more conciliatory style; the Premier has assembled advisors including Avalon Airport chief Ari Suss and former trade minister Philip Dalidakis to reshape the government’s engagement with business. Carroll emphasized fiscal discipline, stating he has implemented billions in savings to curb unnecessary spending.
Public concern over state debt is reflected in recent polling by Wolf and Smith, where 80 percent of respondents identified debt and deficits as key issues influencing their vote. More than 70 percent said they were personally worried about Victoria’s debt levels, and over 75 percent want deficit reduction prioritized.
Ahmed Fahour, chair of the Premier’s Business Council and head of property developer Gurner, has stressed the need for a clear strategy focused on productivity improvements to restore business confidence. He called for comprehensive reviews of payroll tax and other levies, stronger measures to tackle crime, and efforts to leverage Victoria’s property and energy sectors. "These reforms need a clear timetable and urgent delivery," Fahour said, underlining the connection between disciplined spending and sustainable economic growth.
As Victorian voters prepare to head to the polls, debt management, regulatory reform, and economic revitalization remain at the forefront of the political debate, with business leaders and politicians alike seeking ways to reverse the state’s fiscal and confidence woes.