Victoria Biggest Business Loser Post Pandemic

Written by:
27 May 2024
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‘’Victoria remains the nation’s biggest loser, with the slowest growth in business numbers since the Covid-19 pandemic, which is no doubt set to get worse due to the irresponsible economic management of the state government,’’ said Lachlan Clark, Research Fellow at the Institute of Public Affairs.

New IPA analysis of Australian Bureau of Statistics’ Counts of Australia businesses data shows that Victoria has had the slowest growth in the number of operating businesses since Covid-19 lockdowns concluded:

  • Western Australia (+8.8%)
  • Queensland (8.5%)
  • South Australia (8.0%)
  • New South Wales (7.4%)
  • Tasmania (6.7%)
  • Victoria (6.3%)

‘’The latest ABS data confirms Victoria is suffering long-term effects of the state’s failed Covid-19 response, the world’s longest lockdowns, and a recovery being stalled by a state government which imposes the highest taxes and has accrued the largest debt,” said Mr Clark.

The ABS data also shows that Victoria has had the largest number of businesses move to another state or territory. Since the Covid-19 lockdowns concluded, more than 3,000 Victorian businesses have moved to another state or territory:

  • Queensland (+4,276)
  • Western Australia (+1,048)
  • South Australia (+745)
  • Tasmania (-61)
  • New South Wales (-2,680)
  • Victoria (-3,085)

“Given Victoria’s disastrous pandemic response and economic management, it is hardly a surprise that businesses are fleeing Victoria and are re-opening in states and territories with more business-friendly environments, such as Queensland and Western Australia,” said Mr Clark.

Recent IPA research revealed that Victoria is the worst overall performing state in the nation with the highest tax burden, state debt burden, and energy price increases.

“The recent Victorian state budget demonstrates the consequences of a decade of reckless and irresponsible economic management,” said Mr Clark.

“Through deliberate policy decisions, the Victorian government has taken a wrecking ball to the state’s economy, with taxes, spending, and debt all at record highs, with no plan to pay it back.”

“What this latest data confirms is that Victoria is the worst place in the country to run a business, and unless significant corrective action is undertaken, businesses will continue to flee Victoria, and it will cost jobs,” said Mr Clark.

To download the IPA’s previous research click here.

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