00:00The message from the bush has been loud and angry.
00:07What do we want?
00:08We have the tax!
00:09The government isn't quite doing that, but it is delaying its tax hikes on farmers.
00:13This is good news for farmers. It recognises the dry conditions.
00:18The Treasurer is also delaying additional charges on Victorian landlords,
00:22amid confusion and anger about how the levy will be collected.
00:25I don't want it to be a debacle. I don't want it to get it wrong.
00:30And I don't have the confidence just yet that we are ready to go.
00:34I guess that's an omission, I suppose, at this point, of the fact they got it rolled.
00:38Outspoken Wimmera farmer Andrew Wiedemann says farmers were facing 184 per cent increases.
00:44We were obviously quite surprised that they made this announcement this early,
00:48but we know they're coming under political pressure.
00:50This will save tens of thousands of dollars from farmers every single year in years to come.
00:55So for two years we've got this reprieve now.
00:58We need to go further. We need to make sure that this is a permanent change.
01:01The back down will cost the budget $466 million over four years.
01:05Despite this, Victoria is on track for a $700 million surplus this year,
01:09a $100 million improvement on May's budget.
01:12There's a marginal improvement on net debt too,
01:14which is still forecast to hit $192.6 billion in three years.
01:20Despite Treasury making more money than expected,
01:22the government hasn't banked the windfall, instead continuing to spend.
01:26What we are seeing today in black and white from the government
01:29is the fact that the state of the finances here in Victoria is in a dire state.
01:34Victoria's interest repayments continue to rise.
01:37This year it's $7.7 billion.
01:39That's $21.2 million every day this year.
01:42In three years it will reach $10.5 billion.
01:45That's $28.7 million every day.
01:48The state of the budget will be on the ballot paper next year,
01:51and this update shows the government intends to keep spending
01:53to deliver its agenda, including using debt.
01:56The opposition wants a fight on fiscal responsibility.
01:59It just has to find a way for that message to cut through.
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