Victorians will vote on November 28, and the current Labor government has outlined its plans for small businesses and startups. Premier Ben Carroll has made several promises to address the challenges faced by local entrepreneurs, including rising interest rates and inflation. These challenges are compounded by the perception that Victoria is a difficult place to do business, as highlighted by the Business Council of Australia’s ranking.
One key pledge is to allow employees to work from home two days a week, a policy first proposed by former Labor Premier Jacinta Allan. Carroll believes this will benefit working parents, but its implementation has faced delays and legislative hurdles. Responding to industry concerns, Carroll delayed the reform’s start date from September 1, 2026, to July 1, 2027, with small businesses given an additional six months to adjust. Despite these setbacks, Carroll told 3AW he remains committed to the reforms, emphasizing the need to balance the benefits for families with the requirements of businesses.
Manufacturing and Land Tax Reforms
Labor has proposed a substantial fund to boost specific sectors, including advanced manufacturing, defense, food and fiber, and health and medical research. The ‘Make It Here Fund’ totals $350 million, comprising $200 million in equity co-investment and $150 million in grants. This initiative requires a 2:1 private sector match, meaning for every dollar of government funding, two dollars of private investment are needed. Labor estimates the package would create 5,000 manufacturing jobs, providing a significant boost to the state’s economy.
Additionally, the party plans to adjust land tax policies, which have been a major point of contention. Victoria’s land tax regime was a major contributor to the state ranking last in the Business Council of Australia’s 2026 ‘best places to business’ list. Labor aims to gradually raise the threshold from $50,000 to $300,000 over six years, potentially saving affected taxpayers up to $975 annually, according to Labor’s estimates. This reversal of the 2023 changes, which lowered the threshold from $300,000 to $50,000, is intended to alleviate the financial burden on property owners and improve the state’s business environment.
Red Tape Reduction and Business Support
Furthermore, Labor intends to waive stamp duty for businesses restructuring due to federal tax reforms on discretionary trusts. This waiver would last three years and necessitates new legislation, providing relief to businesses facing additional costs from federal changes.
Transport and Entrepreneurial Initiatives
If re-elected, Labor would cap weekly toll road fees at $30 for small businesses. This policy applies to cars, motorcycles, and vehicles under 4.5 tonnes, including utes and vans. Small businesses can claim rebates for up to five vehicles.
The government also proposes establishing a ‘Growth Area Entrepreneur Club’ in Melbourne’s northern suburbs, backed by $100,000 in state funding.
As a bonus, if re-elected, Labor plans to revamp the Food Act 1984, allowing pubs to welcome dogs into their venues if they choose. In conclusion, these proposals aim to support small businesses and startups in Victoria, addressing various challenges and improving the state’s business environment.
