Controversial new taxes in the Victorian Labor budget will be opposed by the state coalition but it has stopped short of promising to repeal all but one.
As state parliament returned following last week's budget, Opposition Leader John Pesutto confirmed the coalition would vote against proposed COVID-19 debt levies on businesses and property investors.
The opposition has also pledged to wind back the Andrews government's plan to remove a longstanding payroll tax exemption for high-fee schools if elected in 2026.
"We don’t believe Victorians who work hard and send their kids to independent schools should be punished for the financial incompetence of the Andrews government," Mr Pesutto told reporters on Tuesday.
The Victorian Liberal leader said the proposed change, which is expected to impact about 110 schools across the state and net $422.2 million over the next four years, was not fair.
Parents who send their children to independent schools with low and modest fees would end up footing the bill, he said.
"That's just not fair," Mr Pesutto said.
"What we're seeing here is the Andrews government open up a new frontier of taxation."
The budget papers state the education minister will determine which non-government schools keep their exemption, with the consent of the treasurer.
Premier Daniel Andrews wouldn't confirm which schools are on the list after The Age reported the threshold has been set to target those with student fees of just above $8000.
But he said schools ineligible for the Victorian government's capital grants program will lose their exemption when the changes take effect from July next year.
Independent Schools Victoria welcomed the coalition's repeal pledge, declaring the proposed tax is causing great anxiety and uncertainty for school leaders, staff and parents.
"We continue to hope that the Victorian government will reconsider this tax on learning, in light of its likely unintended consequences," its chief executive Michelle Green said.
It came as the State Taxation Acts Amendment Bill 2023 and other budget spending measures were debated in the lower house on Tuesday.
The taxation bill includes the 10-year levies on Victorian businesses with national payrolls above $10 million and multiple property owners to repay $31.5 billion in COVID-19 debt.
Mr Pesutto would not commit to scrapping the COVID levies, saying it would not be fiscally responsible to do so until closer to the election.
"We'll need to have a much clearer idea of what we're inheriting by November 2026," he said.
Victoria's net debt is forecast to hit $171.4b by mid-2027, equating to 24.5 per cent of gross state product.
In his budget reply speech, shadow treasurer Brad Rowswell said the coalition would legislate a debt cap if elected but is yet to settle on a figure.
"We will live within our means," he told the chamber.
The Victorian Greens are demanding a two-year rent freeze in exchange for supporting the state government's tax legislation but have not issued an ultimatum.
"The ball is now in the government's court," state party leader Samantha Ratnam said.
Treasurer Tim Pallas has ruled out a rent freeze but left the door open for a cap to be considered as part of the government's housing and planning strategy statement to be released in September.
With the coalition opposing the tax legislation, Labor will need the support of up to six crossbenchers for it to pass the upper house.
