Victorian Economic Growth Statement

The Victorian Government’s Economic Growth Statement: Open for business was delivered on Tuesday 10 December. It was a commitment from the May 2024 Budget. The Statement outlines how the Allan Labor Government will boost the private sector and encourage investment.

The statement focuses on four key actions:

1. Open Doors: Backing business to invest, expand and innovate
2. Cut Red Tape: Making it simpler to do business in Victoria
3. Build New Skills: Ensuring a workforce that’s ready to go
4. Reach Every Community: A strong Victoria underpinned by a strong regional Victoria

Action 1: Open Doors

The Victorian Government has heard from industry that it needs to do more to attract new investment, and support new opportunity for existing business.

Initiatives under this action include:

• Deliver a 10 year plan to unlock industrial land
• A streamlined single entry point for business – an investment front door
• Establishment of a new Investment Coordinator General

Energy Transition

The open doors action also includes a dedicated focus on the energy transition to renewables by 2050, this dedicated section effectively confirms that the Victorian Government recognises the need for gas to get to net zero by 2050. This has marked a significant shift in rhetoric and now policy from the Government over the last 12 months.

Four key initiatives are highlighted

• Fast track new gas projects through the Development Facilitation Program (DFP). More information on the DFP process can be found here.
• Release a new Renewable Gas Directions Paper, working towards developing a strong renewable gas sector to support the long-term needs of industrial gas users.
• Enable faster planning approvals for projects in Victoria’s renewable energy zones by incorporating them into the State Planning Policy Framework
• Increase waste-to-energy cap to 2million tonnes per annum to enable more municipal, commercial and industrial waste to be used to generate energy rather than landfill.

Key Initiatives

Victorian Industry Development Fund: A $20 million fund launching in mid-2025 to support high-growth businesses in the five priority sectors through grants and loan facilities, encouraging innovation and leveraging matched funding from industry.

10-Year Industrial Land Plan: A decade-long strategy to unlock industrial land, providing businesses with certainty and room for growth. Immediate actions include fast-tracking planning for major precincts like Merrifield North and rezoning land in Altona North and Hastings to support job creation.

Investment Front Door and Coordinator-General: A streamlined one-stop shop for business investment and a dedicated Coordinator-General launching in 2025 to ensure approvals for major projects are timely, reducing delays and enhancing government accountability.

Resources Victoria Approval Coordinator Extension: The RVAC will be extended until 2027 to support quarry materials production and critical minerals development, including mapping high-potential areas and fostering community and Traditional Owner engagement.

SME Export Boost: A $10.9 million package to help small and medium-sized businesses access global markets, identify new opportunities, and diversify their customer base.

India and China Trade Strategies: Delivery of a new India Strategy and a refreshed China Strategy in 2025 to strengthen economic partnerships and trade with key markets.

International Students Fund: A fund to help universities and TAFEs establish global partnerships and expand international education delivery in Victoria and overseas.

Market-Led Proposals Pathways: New flexible pathways to unlock private sector creativity and capital for major projects, including residential developments.

Boosting Business Skills Mentoring Program: Up to 1,000 small business owners will receive mentoring sessions to help them build capacity and navigate challenges.

Defence Supply Chain Growth: Support for SMEs to participate in defence supply chains through trade facilitation, workforce development, and innovation, capitalising on AUKUS opportunities.

Strategic Redevelopment Sites: Fast-tracking rezoning of underutilised sites, including former industrial and university land, with tax exemptions for universities reinvesting in research and education.

Venture Capital Growth: Breakthrough Victoria will increase investments in venture capital funds, aligning with priority sectors to attract private capital and bolster the innovation ecosystem.

Clinical Trials Expansion: Enhancing biotech capabilities with specialised clinical trial networks and a new fellowship program to boost trial participation and awareness.

Recycled First Policy Expansion: Extending the use of recycled materials to government projects beyond the transport sector, reducing landfill while ensuring business costs are not increased.

Action 2: Cut Red Tape

The Victorian Government has head from industry that onerous and outdated regulations stifles innovation and slows growth, as such it is removing unnecessary red tape and simplifying government processes.

Initiatives under this action include:

• Halve the number of business regulators by 2030 – from 37 down to at least 18 with a target of reducing the regulatory burden for businesses by $500million by 2030
• Speed up Environmental Effects Statement (EES) process targeting assessment review of no longer than 18 months
• Deliver new priority assessment teams within key regulators to fast-track the assessment of priority projects

Key Initiatives

Halve Business Regulators by 2030: The number of business regulators in Victoria will be cut from 37 to 18, creating the lowest number in any Australian state. This will simplify government interactions for businesses, with clearer contact points and reduced processes, particularly for construction and food industries.

Faster Environmental Effects Statements (EES): EES assessments will be limited to 18 months or less, achieved through sharper scopes, quicker alternatives like Environmental Reports, and streamlined public engagement. This will encourage investment while maintaining environmental protections.

Priority Assessment Teams: From 2025, dedicated teams within key regulators will fast-track assessments for high-value, complex projects, guiding applications through the process efficiently.

Digitisation and AI Program: A new program will replace fragmented regulatory systems with streamlined, digital solutions using AI, speeding up licensing and approvals, and addressing regulatory challenges for businesses.

Streamlined Liquor and Planning Approvals: Hospitality businesses will no longer need separate planning permits and liquor licences to serve alcohol, saving up to $7,000 and reducing opening times by up to six months.

Permanent Outdoor Dining Flexibility: The requirement for planning permits for outdoor dining on public land will be permanently removed, supporting cafes and restaurants to expand and attract more customers.

$500 Million Regulatory Burden Reduction by 2030: Reducing duplication, digitising processes, removing unnecessary permits, and simplifying regulations will save businesses significant time and money, with a cumulative benefit of $500 million.

Action 3: Build New Skills

The Victorian Government has heard from industry that it needs to continue to have the right workers with the right skills and continue to create a pipeline of talent.

Key initiatives under this action include:

• Rapidly upskill and reskill workers through the Digital Jobs Program
• Support the establishment of more Skills Solutions Partnerships

Key Initiatives:

Future of Housing Construction Centre: A new centre at Melbourne Polytechnic will train workers in modern construction technologies like prefabrication and modular construction, ensuring faster, cost-effective, and sustainable solutions to meet Victoria’s housing and infrastructure needs.

AI for Prior Learning Recognition: An AI pilot led by Bendigo Kangan Institute will enhance recognition of prior learning, helping workers avoid unnecessary training and enabling faster, more accurate skill assessments for employers and students.

First Peoples Leadership Academy: A leadership academy, proposed by the Yuma Yirramboi Council’s Koori Caucus, will foster the next generation of First Peoples leaders in business, government, and community roles.

Support for Aboriginal Businesses: Increased funding will assist Aboriginal businesses through trade initiatives, support for Kinaway Chamber of Commerce and Ngarrimili, and hosting the 2025 World Indigenous Business Forum.

Opening Victorian Public Service Jobs: Barriers to advertising Victorian Public Service roles externally will be removed, encouraging greater exchange of people and ideas between government and the private sector.

Digital Jobs Program: The program will provide training in digital skills critical to innovation in construction and advanced manufacturing, rapidly upskilling and reskilling workers for emerging opportunities.

Action 4: Reach Every Community (Regional Victoria)

A strong Victoria relies on a strong regional Victoria. The Allan Labor Government is looking to grow the regional economy, with initiatives that focus on unlocking industrial land, reducing red tape and regulators.

Key Initiatives:

$10 Million for Regional Trunk Infrastructure: The government will invest in critical trunk infrastructure such as water, sewerage, roads, and electricity to unlock more industrial land in regional Victoria through competitive funding rounds, prioritising viable projects with co-investment. 

Boost Destination Marketing Fund: A cooperative fund, jointly funded by government and industry, will match up to $7 million to promote Victoria as a tourism destination to international, intrastate, and interstate audiences, boosting visitation. 

Agricultural RNA Technology Research: Investment in agricultural applications of RNA technology will enhance crop yields, reduce insecticide use, and decrease methane emissions from cattle, leveraging Victoria’s leadership in mRNA technology. 

Smarter Regulation for Regional Victoria: Targeted investments will simplify regulation for businesses in regional Victoria, focusing on sectors like freight, logistics, and food production, while digitising regional council systems. 

Pilot Regional Launching Pads: New shared collaboration spaces in regional areas will support businesses, entrepreneurs, and investors by providing a place to meet, work, and grow, with five regional and one metro Launching Pad being piloted. 

Regional Victoria Economic Web Portal: A new web portal will showcase business investment opportunities in regional Victoria, attracting both domestic and international investors to the region. 

Priority Industries

To give industry certainty the Government has outlined priority sectors for future economic investment in Victorian that will align with and support the actions.

• Advanced Manufacturing and Defence 
• Health Technologies and Medical Research 
• Circular Economy 
• Digital Technologies 
• Agribusiness 

Advanced Manufacturing and Defence

Victoria’s manufacturing sector contributes $39.2 billion to the economy, exports $11.2 billion worth of goods annually, and supports over 275,000 jobs.

The Allan Labor Government is prioritiding advanced manufacturing technologies to address inefficiencies and support growth. A key focus is on modern construction methods, such as prefabrication and modular construction, to improve efficiency and reduce costs for housing and infrastructure projects. These innovations are essential for meeting the state’s ambitious infrastructure and housing targets.

Victoria’s strategic position in defence manufacturing is also central to the government’s plans. Already the leader in armoured vehicle procurement, the state aims to capitalise on opportunities from Commonwealth investments in local manufacturing and defence, including through the AUKUS agreement. These efforts will enhance dual-sector applications in areas like renewable energy and transport, driving technological innovation and economic growth.

Advanced manufacturing plays a critical role in sustaining high living standards for Victorians. It supports vital infrastructure and renewable energy initiatives while ensuring robust supply chains amid global uncertainties. With a skilled workforce and cutting-edge engineering capabilities, Victoria is well-positioned to remain a manufacturing powerhouse and sharpen its competitive edge.

Health Technologies and Medical Research

Victoria is recognised as one of the global leaders in health-related technologies and is looking to capitalise on this momentum by developing this capability and attracting global industry and investment for research, product development, manufacturing and commercialisation in Victoria.

This focus on health technologies is supported by world-class facilities, including the National Drug Discovery Centre, the Aikenhead Centre for Medical Discovery, Moderna’s mRNA Vaccine Manufacturing Facility, BioNTech’s mRNA research and clinical manufacturing facility, and CSL Seqirus’ vaccine and anti-venom manufacturing facility.

Circular Economy

As Victoria transitions to net zero emissions by 2045, the state is set to become a global leader in low-carbon production. Leveraging its industrial strengths, skilled workforce, resource base, and low-carbon research clusters, Victoria is expanding capabilities and developing innovative products and technologies. National funding programs, such as the $22.7 billion Future Made in Australia fund and the $15 billion National Reconstruction Fund, provide significant opportunities for Victorian businesses to integrate into renewable energy supply chains.

Building a circular economy is essential for achieving net zero targets and ensuring the state’s resilience in a decarbonising world. With major hubs established by Moderna and BioNTech, Victoria is uniquely positioned as the only location globally where both mRNA leaders conduct research, development, and manufacturing. Additionally, Victoria is a national leader in clinical trials, covering a wide range of diseases and advanced health technologies. This complete ecosystem – from research to testing to production – strengthens Victoria’s position to further grow the sector.

The government has outlined its plan to focus on critical mineral processing and battery production. Victoria’s rich critical mineral resources offer opportunities for extraction and downstream processing, including the design, production, and recycling of energy storage products for local and export markets. Growth will also continue in offshore and onshore wind, solar, and energy storage, driving private investment to create long-term jobs and economic benefits while leveraging Victoria’s renewable resources and highly skilled workforce.

To support this emerging industry, the Victorian Government established Resources Victoria, which aims to unlock sustainable mineral development. A roadmap will be created to attract world-class mineral projects and investors to the state while upholding strong environmental standards and fostering greater consultation with local communities.

Digital Technologies

Victoria’s digital technology sector contributed $35.6 billion to the state’s economy in 2023 and employs 30% of Australia’s digital technology workforce. Recognising its role as a driver of economic growth and productivity across industries, the Allan Labor Government’s Economic Growth plan focuses on maintaining global competitiveness through advancements in research development, commercialisation, artificial intelligence (AI), machine learning, and quantum technology applications.

To support this vision, the government will continue the Digital Jobs Program, providing vital digital skills training for sectors such as construction and advanced manufacturing. Additionally, a new Digitisation and AI Program will be launched to streamline government processes, addressing regulatory challenges faced by businesses and enhancing operational efficiency.

By combining cutting-edge innovation with practical support, these initiatives aim to strengthen Victoria’s position as a leader in the digital economy and unlock new opportunities across key industries.

mRNA Technology and Agricultural Advancement

The Allan Labor Government is increasing investment in developing agricultural applications of RNA technology, which holds the potential to boost crop yields, manage pest populations, and combat climate change by reducing methane emissions from cattle. 

Applying RNA technology to the agricultural industry will deliver significant benefits to Victoria’s food and fibre industries, strengthen the circular economy, and generate substantial economic value for the state. 

Victoria is Australia’s top-ranked state for agribusiness exports, contributing nearly half of the state’s total goods exports and valued at over $15 billion annually. The state is also a hub for food innovation, with renowned facilities such as the CSIRO’s National Food Innovation Centre, Monash Food Innovation Centre, and the AgriBio Centre for AgriBiosciences in Bundoora. 

Future priorities for agribusiness include exploring new and existing export markets, expanding value-added food production and manufacturing, and fostering innovation and commercialisation opportunities for agribusinesses.

Premier’s Business Council

A new council will foster direct engagement between business and government. Ahmed Fahour AO, CEO of Gurner Group, will chair the council, which comprises leaders from diverse industries, including manufacturing, finance, education, and the arts. 

Additionally, business forums led by industry associations and unions will enable ongoing dialogue to strengthen Victoria’s economy. 

The council members announced are as follows:

• Andrew Dillon, CEO of the AFL
• Andrew Irvine, CEO of National Australia Bank
• Anthony Pratt, Chairman of Visy
• Bihong Wang, President of Asian Australian Business Association of Whitehorse
• Carol Schwartz AO, Chair of Equity Trustees and Our Community, Director of Trawalla Group, Member of Board of the Reserve Bank of Australia
• Carolyn Viney, CEO of Assemble
• Elizabeth Lewis-Gray, Co-Founder and Chair of Gekko Systems
• Lisa Barron OAM, Founder of Lisa Barron, Melbourne Made Womenswear Designer
• Mark Mentha, Co-Founder and Partner at KordaMentha
• Mike Schneider, CEO of Bunnings
• Mitu Bhowmick Lange AM, Founder and Director of Mind Blowing Films
• Nick Reece, Lord Mayor of the City of Melbourne
• Penny Fowler, Chair of Royal Botanical Gardens, Tourism Australia and the Good Friday Appeal
• Professor Sharon Pickering, Vice-Chancellor and President at Monash University

See Victoria’s Economic Growth Statement in full here.