Victoria named Australia’s worst state for business again

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Victoria has been named Australia’s hardest state to do business in for the second year in a row, according to the Business Council of Australia’s 2025 report.

The state ranked eighth overall, with the report pointing to high property and payroll taxes and heavy licensing rules as major hurdles for businesses — despite recent planning reforms aimed at speeding up housing approvals.

In contrast, South Australia topped the rankings for the third straight year, praised for low payroll taxes, simpler approvals, and consistent planning regulations.

The report assessed all states and territories across 10 key areas, including taxes, trading hours, insurance, business licensing, and planning processes.

Victoria performed reasonably well in retail trading hours and workers’ compensation, but those gains were outweighed by the state’s tax and regulatory burden.

The report highlighted Victoria’s nation-leading commercial stamp duty and high land tax rates, including new COVID-related surcharges and absentee owner taxes introduced in 2024.

Premier Jacinta Allan defended her government, arguing Victoria continues to attract investment and build more homes than any other state.

“The Business Council doesn’t understand what’s important to Victorian businesses and workers,” she said.

Backing her stance, tech entrepreneur Bevan Slattery praised the government’s support, calling it “outstanding” during the launch of a $500 million subsea fibre optic cable project connecting Sydney, Melbourne, Adelaide, and Perth.

The Business Council warned that Victoria’s weak performance could hurt national competitiveness, with CEO Bran Black urging the state to cut taxes and red tape to encourage private investment.

Despite the criticism, Allan stood firm:

“I’ll always back Victorian businesses and workers — no matter what commentators from Sydney say.”

Credit : Theage

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