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Action one: Open doors

Backing business to invest, expand and innovate. As a state, we have so much to offer.

But as we heard from industry – we can do even more to attract new investment, and back new opportunity for existing business.

It’s why we’re opening the door and rolling out the welcome mat – giving businesses certainty that ours is a state where they can invest, expand and innovate.

Through new land, dedicated support, and increasing trade opportunities, the Government is sending a clear message:

Victoria is open for – and to – business.

Not only will these reforms back Victorian industries and businesses – it means backing more high-quality, well-paying Victorian jobs.

Initiatives

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The Fund will build on our existing strengths across the Government’s five priority sectors, supporting eligible business with high growth potential both through grants – leveraging matched funding provided by industry – and by partnering with commercial lenders to establish a loan facility for innovative Victorian start-ups and scale-ups.

The fund will open in mid‑2025.

The Government will deliver a 10-year plan to unlock industrial land.

This decade-long pipeline of work will give businesses certainty on how and when land will be released - enabling them to plan for the long-term.

We’re also taking immediate action to increase available industrial land by:

This includes a new one-stop shop for institutional housing investment, to prioritise and facilitate institutional investment at scale in housing.

A streamlined, single entry point for business on all investment-related engagements within the Victorian Government. Invest Victoria will provide dedicated facilitation support to businesses looking to invest in Victoria, including:

The Investment Coordinator-General will be an escalation point to ensure agencies, regulators and statutory authorities meet all required approvals deadlines for major projects of state significance.

This new oversight will reduce delays, and enhance accountability across government departments and agencies.

The Coordinator-General will begin in early 2025.

The Coordinator-General is modelled on the success of RVAC, which, in its first year of operation, facilitated 93 million tonnes ($2 billion in gross production value) of quarry materials.

We’re making sure that success continues, extending the RVAC until 2027, bringing to market more concrete and other materials used in housing and vital infrastructure.

We’ll also support new critical minerals projects – including developing maps that identify areas that have the highest likelihood of developing successful critical minerals operations, and providing dedicated support to facilitate engagement with community and Traditional Owners.

The new package will help more small and medium-sized businesses take their products to global markets, identify new markets, and diversify their customer base – including through one-to-one facilitation services.

In addition to delivering on the Victorian Government’s commitments under the new India Strategy, we will also develop a refreshed China Strategy to guide engagement with one of our most important partners.

The Strategy will be delivered in 2025.

Through the establishment of a new fund, we’ll help our universities and TAFEs establish global partnerships, and find new ways to deliver international and transnational education both here in Victoria and with overseas partners.

The Government will unlock more Market-led Proposals, with new alternative and flexible pathways.

This will help unleash the creativity and capital of the private and superannuation sectors for major residential development and other projects.

The program will provide up to 1,000 small business owners across the Government’s five priority sectors with up to three 1-hour mentoring sessions with an experienced professional.

This program will provide dedicated support for businesses, helping them navigate challenges, build capacity, and achieve measurable success.

Defence activities represent a significant opportunity for Victoria. It’s why we’ll make Victoria the natural choice for defence-related contracts, with funding for:

The Development Facilitation Program will be expanded to rezone significant underutilised land holdings sooner.

For example, this will fast-track approvals on repurposing and redevelopment of former industrial or institutional sites, golf courses or racing tracks, and university-owned land that is surplus to educational needs.

To support the repurposing of underutilised university-owned land and investment in research, education and innovation, universities can access an exemption from windfall gains tax where the revenue from the land will be used for the university’s charitable purpose.

Breakthrough Victoria will boost its investment in Venture Capital funds to crowd in more private capital to the state to turbocharge investment in Victoria.

This work will also see Breakthrough Victoria sharpen its alignment with priority sectors and ensure its complementary role along with LaunchVic in Victoria’s growing innovation ecosystem.

Victoria will build on its biotech capabilities, enabling industry sponsored clinical trials via specialised networks and delivering a new statewide fellowship program to support participation, awareness and capability building in clinical trials across health services.

The Recycled First policy will be expanded to major Government projects in non-transport sector, where this can be done without increasing business costs.

This reform will reduce landfill and support businesses producing recycled materials. Government will consult with industry before the policy’s extension into other sectors.

Opening the door to growth also means enabling the supporting infrastructure that businesses need to thrive. That includes access to cheap and reliable energy.

Victoria has the lowest power prices of any state in the nation and the most ambitious renewable energy agenda in the country.

Already we’ve accelerated approvals and assessments for renewable energy projects, established the Gas Substitution Roadmap to help our state navigate the path to net zero emissions, and released our holistic plan to transition the Victorian economy to renewable energy, Cheaper,(opens in a new window) Cleaner, Renewable: Our Plan for Victoria’s Electricity Future(opens in a new window).

While gas has a role to play in our energy transition, it’s a dwindling resource.

Victoria produces more gas than it consumes and has been a net exporter to other states for many years – but gas supplies in the Gippsland and other legacy basins are depleting. As the Lead Scientist has also confirmed, there are currently no proven and probable onshore gas reserves in Victoria.

Eastern Australia now faces the potential for gas supply risk despite the approval of massive increases in LNG export from Queensland gas fields in the last 10 years. The Australian Energy Market Operator (AEMO) forecasts a growing risk of peak day supply shortfalls in the east coast gas market with more significant risks from 2028.

New investment is needed if gas supply from 2028 is to keep up with demand from homes and businesses, and for gas-powered electricity generation.

Here in Victoria, we’re taking strong and decisive action. Earlier this year, we approved the only application made for new gas extraction in Victoria since we came to government, and have passed new legislation that paves the way for offshore gas storage projects. And as we work to protect gas supply for the businesses who need it most, we’re doing it in a commonsense way – supporting households to switch to electric appliances, while also ensuring Victorians can keep cooking with gas.

This builds on the existing supply and infrastructure proposals under development, spanning domestic offshore gas exploration, storage projects, pipeline infrastructure upgrades and gas import terminal projects.

Victoria is also working with AEMO, the Commonwealth and other relevant states to ensure a national, integrated response to this supply risk – that delivers certainty of supply to industry at a price that ensures businesses remain competitive. Several options to secure new supply are being considered, including import terminal proposals, where they meet planning and environmental requirements.

Victoria recognises existing Commonwealth controls on gas exports, the Australian Domestic Gas Security Mechanism and the Heads of Agreement with east-coast gas producers. In 2018, Victoria introduced a legislative framework that prevents any petroleum production licensee supplying petroleum to an LNG exporter unless the licensee has first taken all reasonable steps to supply that petroleum to a domestic customer. While the market operator has a role in forecasting and responding to gas supply security risks and Victoria has led reforms to e sure it can manage gas storage better, there is a need for stronger action – at every level of government.

As an issue that is impacting our national long-term energy security – we require national action. The Victorian Government is calling on, and committed to working with, the Commonwealth Government on a federal gas reserve – because Australian gas should go to Australians first.

We’re taking action at a state-wide level too. To start building the capability and markets to support the long-term needs of its industrial gas users, Victoria is releasing a Renewable Gas Directions Paper, to test options for developing a thriving renewable gas sector through the new Victorian Industrial Renewable Gas Guarantee. Renewable gases like biomethane and renewable hydrogen are the most likely technologies to decarbonise Victorian industry gas consumption where electrification is not an option.

This will not replace gas in the short or medium term, and does not diminish the need for urgent, significant and national reforms to shore up our supply of gas. It will, however, be an important component in decarbonising Victoria’s industrial sector in the longer term to support net zero emissions by 2045 and beyond.

Building on this work and the reforms outlined in Cheaper, Cleaner, Greener: Our Plan for Victoria’s Energy Future(opens in a new window), the Government’s Economic Growth Statement will:

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To support more global investment in renewable energy to Victoria, we’ll enable faster planning approvals.

Not only will this make it easier to attract investment projects to our state – it can help deliver cheaper and more reliable energy for businesses, while also creating jobs across regional Victoria.

All new potential gas projects can access the accelerated assessment pathway for new planning permits, delivering faster decision-making and approvals for gas extraction, storage, transmission or importation projects, helping ensure reliable access to gas for Victorian businesses.

This will provide a clear policy signal to industry that the Government welcomes investment in waste-to-energy infrastructure.

In addition to the initial 2 million cap increase, the Government will begin work to raise the cap to 2.5 million tonnes per annum, subject to a regulatory impact statement being completed.

The Directions Paper will set out the state’s direction on renewable gas action, including biomethane and renewable hydrogen.

Updated 11 December 2024

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