Victoria’s economic chickens come home to roost

Monday 27 July 2026

When the state Labor government took office in 2014, Victoria had very low debt.

However, after more than a decade of poor financial management and waste, Victorians are now the highest-taxed people in the nation, and the state is the most indebted, with the poorest credit rating.

Victoria’s debt binge has been brought about by profligate spending on the public service, which has ballooned in size, as well as infrastructure, which has been mired in rorts and CFME corruption.

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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.