Victoria: too many bureaucrats, too few front line staff

Monday 17 August 2026

Victoria’s state budget is drowning in debt, has the lowest credit rating in the nation, and risks further downgrades.

Moody’s recently warned that by the end of the decade, $1 out of every $10 in state revenue will be spent servicing Victoria’s debt.

The blowout of Victoria’s debt is despite residents paying the highest taxes in the nation:

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About the author

Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.