Victoria braces for credit rating downgrade

Tuesday 23 December 2025

The state of Victoria already has the highest debt load and the nation’s poorest credit rating.

Victorians also pay the highest taxes in the nation.

The Allan Government last week unveiled a suite of new ‘value capture’ taxes and levies on developers, landowners, and car‑park operators to help fund the Suburban Rail Loop East (SRL East), the $34.5 billion first stage of Melbourne’s orbital rail line.

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.