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Audit Flags $2.6 Billion Loss, Rising Debt and Idle Trust Funds in Victoria

The watchdog warns of mounting fiscal risks, urging clearer public reporting on debt‑reduction measures.

Overview

  • VAGO reports a 2024–25 operating loss of $2.6 billion, about $400 million worse than budget and part of more than $50 billion in losses over six years.
  • Gross debt climbed from $168.8 billion to $187.9 billion, with annual interest costs projected to rise from $6.8 billion to $10.6 billion by 2028–29.
  • Around $1.5 billion sits unspent in purpose‑restricted trusts, including the Sustainability Trust, Community Support Fund and Growth Areas Public Transport Fund.
  • The audit details a $590 million bailout of the domestic building insurance program after VMIA losses and a transfer of the scheme to the Building and Plumbing Commission.
  • VAGO highlights an $18.3 billion superannuation gap requiring about $18.1 billion in contributions from 2026 to 2035, as the government reports $4.3 billion raised under its COVID Debt Repayment Plan and $9.9 billion in the Victorian Future Fund and forecasts a $611 million surplus next year.