Interest rate rises smash Andrews’ broken budget

Victorian families and small businesses are set to pay even more for Daniel Andrews’ broken budget as recent interest rate rises take Labor’s record debt from bad to worse.


Eight years of Labor’s waste and mismanagement will see Victoria’s net debt reach a forecast record $167.5 billion in 2025-26 – equivalent to the aggregate net debt of New South Wales, Queensland and South Australia combined.


Now with interest rates rising, the cost of this record debt is hitting taxpayers – meaning higher taxes and fewer services.


Recent interest rate rises have caused a massive $1.9 billion hit to the budget, more than the cost of building both the Melton and Barwon Women’s and Children’s Hospitals or running Ambulance Victoria for more than a year.


Furthermore, this increase has entirely wiped out Labor’s projected budget surplus in 2025-26, only five weeks after it was announced.


Shadow Treasurer, David Davis said Victoria’s recovery was being risked by Daniel Andrews’ waste and mismanagement.


“Victorians cannot afford more of Labor’s waste, mismanagement and budget blowouts.”


“Daniel Andrews is addicted to debt and covering up mistakes using other people’s money. Labor wastes, you pay.”


“Instead of throwing away money to pay for Labor’s debt, the Liberals and Nationals will end the waste and put money into fixing the health crisis.”


“Only a Matthew Guy Liberals and Nationals Government will guarantee no new taxes so local communities can recover and rebuild in confidence.”


David Davis MP

Shadow Treasurer