Premier pitches three-pronged economic push for Victoria

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Allan also said Victoria could lead the way in AI development. He said advances in this area are estimated to add $30 billion to government output over the next decade.

But he acknowledged there was a delicate balancing act to protect people whose jobs were affected or even replaced by evolving technology, and argued that AI, used correctly, could create more jobs than it takes away.

“I am the daughter of a man who worked with his hands. I watched him get laid off with the stroke of a pen,” Allan said.

“I don’t want a future where 40 years from now a politician will have to say, ‘I’m the daughter of a man who once worked with the screen.’

“We can maximize the benefits while protecting our employees, so workers can better benefit from the change and not be left behind.”

To achieve this, Allan said the government will introduce two new AI-focused policies.

He has pledged to make Victoria the country’s hub for data centres, large facilities housing the servers and storage needed to enable artificial intelligence, but has expressed concerns about the energy and water they will require.

The state government will spend $5.5 million on a sustainable data center action plan to help determine where centers should be located so they are close to electricity, water and transport without straining Victoria’s existing resources.

The plan will also work with the TAFE sector to develop workers who can help build this central line, which government estimates could cost up to $25 billion in capital expenditure.

Australian Bureau of Statistics data published on Thursday showed a huge increase in spending on media and telecommunications buildings and equipment in 2025, driven in part by a rush to build more data centers around the world.

Allan also pledged $8.1 million for “AI career transformation” to help employees whose jobs are impacted by technology become AI experts.

“We will quickly target the sectors where we can make the biggest difference,” he said. “And we will offer it to more than 1,300 workers who are most at risk.”

Allan’s comments come almost a year after he unveiled his Economic Growth Charter, a set of policies aimed at encouraging private sector investment and giving business confidence in Labour’s economic credentials.

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State Opposition Leader Jess Wilson has sought to put the economy front and center with voters, laying the groundwork for a 2026 election campaign that will focus more on jobs after a year in which crime has dominated both sides of politics.

Allan told the Australian Economic Development Committee over lunch that he disagreed with some businesses’ commitment to legalize the right to work from home but would still pursue the policy.

“I listened to your opinions. I respect them. I did not change my mind,” he said. “And I think in the years to come these businesses will change their situation.”

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