Maximising Victoria’s Potential and Competitiveness: A practical reform agenda

Maximising Victoria’s Potential and Competitiveness puts forward a clear and urgent message ahead of the state election: the settings that once underpinned economic strength are no longer keeping pace and reform cannot wait.

The platform sets out both an honest assessment of current conditions and a practical roadmap for the next government, focused on removing barriers to investment, strengthening productivity, and ensuring Victoria remains a place where businesses can grow and employ with confidence.

This platform reflects direct feedback from membership and stakeholders from our network of more than 100,000 businesses and individuals across Victoria.

The message is that businesses are ready to invest, grow and employ, but are increasingly finding it harder than it should be. Settings across tax, energy, regulation and skills are placing pressure on competitiveness, and the data shows that impact is already being felt.

At the same time, Victoria’s economic position is under strain. Per capita growth is declining, business confidence remains weak, and investment is lagging behind other states.

This platform is our response, a practical reform agenda developed with industry, grounded in evidence, and shaped by what businesses need to succeed in a modern economy.

It is also a statement of partnership. Business will lead investment, but we need government to create the conditions that enable that investment to happen at scale.

Four levers to restore competitiveness

At the centre of the platform is a focused reform agenda built around four interconnected levers, each critical to rebuilding Victoria’s economic strength.

Energy

Victoria’s energy transition must continue but it must also work. That means ensuring the system delivers affordability, reliability and investor confidence, supported by transparent planning and faster approvals for critical infrastructure.

Tax and regulation

Victoria’s tax burden is now the highest in the country, and regulatory complexity continues to grow. Reform is needed to restore confidence, reduce costs, and ensure the state remains an attractive place to do business.

Global industries

Victoria has genuine strengths in sectors such as advanced manufacturing, agriculture and logistics. The platform proposes new “Industry Deals” to align infrastructure, approvals, skills and energy settings – creating the conditions needed to attract investment at scale.

Education and skills

Without a skilled workforce, investment cannot translate into jobs or growth. The platform calls for reforms to training, stronger employer incentives, and new Industry Skills Pacts to align workforce development with industry demand.

Urgent actions

Energy

• Commission a 2027 Victorian Adequacy Statement: Establish a credible post-Yallourn system adequacy plan before the plant closes in 2028 – identifying the firming, storage and network capacity that must be operational before Victoria loses 1450MW of firm generation.
• Clarify Victoria’s position on gas-fired generation in the Federal Government’s Capacity Investment Scheme before it concludes in 2027.

Tax and regulation

• Commission an independent fiscal review within the first 30 days of the next government, completed within six months, with findings tabled in Parliament.
• Establish and fund a regulatory stock review mechanism in the first budget, with the first priority area review commencing within six months.

Global industries

• Commence the first Industry Deal, focused on critical minerals, as early as practicable following the 2026 election, with agriculture and advanced manufacturing to follow in close sequence.
• Address the energy-manufacturing nexus as a matter of urgency to make tangible progress on gas supply, firming capacity and transmission sequencing before major industrial investment decisions are taken.
• Reform approvals for industrial investment – establish a fast-track pathway for major projects in foundation industries with clear timeframes, single-point accountability and recognition of industrial competitiveness as a public interest consideration.

Education and skills

• Launch the first Industry Skills Pact alongside the first Industry Deal, covering training places, incentives, provider capacity and migration settings.
• Introduce a payroll tax exemption for apprentice and trainee wages in the first budget following the 2026 election.

Message from leadership

Committee for Melbourne Chief Executive Scott Veenker said: “Melbourne’s future prosperity depends on restoring Victoria’s competitiveness.

“Melbourne has extraordinary strengths: world-class education, a highly skilled workforce, a globally connected economy and incredible liveability, but we cannot take those advantages for granted.

“Global investment is mobile and highly competitive. Cities and states that create certainty, affordability and confidence will win.

“Melbourne and Greater Melbourne need a long-term economic strategy that supports investment, housing, infrastructure, innovation and jobs growth together.

“This platform recognises that business and government must work in genuine partnership to secure Victoria’s future prosperity.”

View the full platform