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Victoria Ranked Worst State for Business Again

The Business Council said high payroll and property taxes together with slow planning approvals underpin the poor score and have prompted rival tax‑relief pledges ahead of the state election.

Overview

  • The Business Council of Australia published its 2026 Regulation Rumble on Tuesday and put Victoria last for the third consecutive year.
  • The council cited high payroll tax, heavy property taxes, complex business licensing and slower planning decisions as the main reasons Victoria scored worst.
  • Victoria’s planned planning reforms under the ‘Better Decisions Made Faster’ laws are legislated but do not take effect until 2027, so they were not reflected in this year’s ranking.
  • At a Victorian Chamber of Commerce event on Tuesday, Premier Ben Carroll and Opposition Leader Jess Wilson each offered pro‑business measures and parties pledged reviews or cuts to land tax, payroll tax and stamp duties.
  • One bright spot for Victoria was a planned phase‑out of business insurance duties by 2033, while South Australia topped the index for the fourth year as the report compares payroll taxes, planning speed, licensing complexity and insurance costs across jurisdictions.