$1.4 billion deficit amid WorkCover insurance claims and higher interest rates
Since then, workers’ mental health compensation claims have been denied at twice the rate they were before eligibility was tightened.
Victorian Managed Insurance Corporation has also launched a “capital management plan” that will introduce a new charge to its customers to improve its financial position.
Opposition finance spokeswoman Bridget Vallence said these “persistent deficits” in Victoria’s public sector had exposed pressure on the state budget and government mismanagement.
“Every extra dollar spent on debt and interest is one less dollar for better health, education, community safety and transportation services, and another dollar that future generations will have to pay back.”
The Allan government said operating result was just one of many metrics that determined the financial health of these companies.
“The Victorian economy is strong and well supported by our economic plan, with operating cash surplus of $3.2 billion and net debt $4.7 billion lower than the revised forecast in the 2025-26 budget,” a spokesman said.
Finance Minister Jaclyn Symes accused the opposition of a funding black hole.Credit: Joe Armao
“We monitor and support the financial sustainability of all institutions in the public financial institutions sector and have implemented significant reforms to support the financial sustainability of the WorkCover programme.”
Finance Minister Jaclyn Symes has stepped up her attack on how the Coalition’s tax policies will affect the state’s bottom line, pointing to analysis by her office that estimates the proposed changes would cost almost $11 billion.
“This is a desperate opposition that will say anything to anyone to appeal to popular opinion,” Symes said. “Whatever the cost, there is a multibillion-dollar black hole.”
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The coalition rejected the sum, pointing out that the total cost of its policies was $5 billion.
Shadow treasurer Jess Wilson said the tax increase was “like a reflex” for Labor.
“Labour knows the highest tax regime in the country is hurting Victorians and our economy, but they have no choice but to continue squeezing money out of hard-working Victorians while net debt grows by $2 million an hour.”
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