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Regional Victoria must be at the centre of Victoria's economic future

The Victorian Chamber of Commerce and Industry & Committee for Melbourne

Regional Victoria holds the key to the state’s future prosperity, but decades of underinvestment, rising business costs, workforce shortages and growing infrastructure pressures are limiting its potential.

The Victorian Chamber of Commerce and Industry (VCCI) and Committee for Melbourne (CfM) have launched a major business-led reform agenda, advocating for the next Victorian Government to place Regional Victoria at the centre of state’s economic growth strategy.

The platform demonstrates Victoria cannot achieve its economic ambitions without a stronger focus on regional growth.

Regional Victoria is home to many of the industries that underpin the state’s economy, including agriculture, food production, manufacturing, logistics, tourism, renewable energy generation and critical minerals. It is also where much of the infrastructure required to support Victoria’s future growth will be located.

Yet many regional businesses continue to face increasing challenges.

Businesses are dealing with rising energy costs, workforce shortages, complex regulation, limited access to training pathways, transport bottlenecks and growing uncertainty about future investment conditions.

VCCI’s recent State Election Survey found more than one in four Victorian businesses had considered shutting down during the previous 12 months, while concerns around operating costs, taxation, access to workers and regulatory burden continue to intensify.

Unless Victoria becomes a more attractive place to invest and grow a business, regional communities risk losing opportunities, jobs and investment to interstate and international competitors.

The platform identifies four key areas for reform.

1. Affordable and reliable energy for regional industries

Regional Victoria is expected to play a critical role in delivering Australia’s energy transition, hosting much of the renewable energy generation, storage and transmission infrastructure required over coming decades.

The platform advocates for greater transparency, accountability and planning around the energy transition, including annual system adequacy reporting, faster approvals for critical infrastructure and clearer policies regarding gas supply and energy reliability.

Importantly, VCCI and CfM argue regional communities must share in the economic benefits generated by energy projects and have confidence that energy policy decisions will support local industries and jobs.

2. Lower costs and less red tape for regional businesses

A comprehensive review of Victoria’s finances, taxation settings and regulatory burden is required to improve business competitiveness.

Regional businesses often face disproportionately higher operating costs due to freight, transport and workforce constraints.

Reducing unnecessary regulation and creating a pathway to lower business taxes would encourage investment, expansion and employment across regional Victoria.

The platform also calls for stronger accountability around major government infrastructure projects and long-term fiscal management to ensure public resources are directed effectively.

3. Backing Victoria’s regional industries

VCCI and CfM are proposing a new model of Industry Deals to support sectors where Victoria has a genuine competitive advantage.

These deals would bring together government and industry to coordinate infrastructure, workforce planning, approvals, energy supply and investment attraction.

Priority industries include agriculture, food processing, advanced manufacturing, freight and logistics, tourism, critical minerals, defence and emerging technology sectors.

Regional Victoria is uniquely positioned to benefit from growing global demand for food, clean energy, advanced manufacturing and critical mineral supply chains.

Securing these opportunities will require governments to move beyond fragmented policy approaches and provide businesses with greater certainty and support.

4. Building the workforce regional Victoria needs

Workforce shortages continue to be one of the most significant barriers to growth for regional businesses.

The platform proposes a series of reforms designed to strengthen workforce participation, improve training outcomes and create clearer pathways into employment.

Recommendations include payroll tax exemptions for directly employed apprentices and trainees, stronger support for Group Training Organisations, expanded regional training opportunities and targeted investment in literacy, numeracy and digital skills.

The platform also advocates for Industry Skills Pacts that align training and workforce development directly with future industry demand.

This would ensure regional employers have access to the skilled workers needed to support future investment and economic growth.

Regional Victoria has a unique opportunity to become one of Australia’s leading centres for industry, innovation, energy generation and advanced manufacturing, and realising this opportunity will require deliberate reform and stronger collaboration between business and government.

To be attributed to Victorian Chamber of Commerce and Industry Chief Executive, Sally Curtain: 

“Regional Victoria is one of our state’s greatest economic strengths, but too often it is viewed through the lens of individual projects rather than a comprehensive growth strategy.

“The industries that will drive Victoria’s future prosperity are overwhelmingly concentrated in regional communities - from agriculture and food production to renewable energy, manufacturing, tourism and critical minerals.

“Businesses are telling us they want to invest, expand and employ more people, but they need confidence that Victoria remains competitive.

“Our platform is about restoring that confidence and creating the conditions that allow regional businesses and communities to thrive.

“Victoria’s future economic success will not be delivered solely from Melbourne. It will be delivered through stronger partnerships with regional communities and businesses across the entire state.”

To be attributed to Committee for Melbourne Chief Executive, Scott Veeker:

“Melbourne and regional Victoria are deeply interconnected. The success of one depends on the success of the other.

“The food we export, the energy we generate, the freight we move and many of the industries that support our economy are built in regional Victoria.

“As Victoria’s population continues to grow, the role of regional centres will become increasingly important in supporting economic development, housing growth and workforce participation.

“This platform recognises that a stronger Melbourne requires a stronger regional Victoria.

“We have an opportunity to create a more balanced, resilient and competitive Victorian economy, but it will require governments and business to work together to unlock the full potential of our regions.”

Contact details:

To organise television or radio interviews/grabs with Victorian Chamber Chief Executive Sally Curtain or Committee for Melbourne Chief Executive Scott Veenker, please call 0423 883 945 or email [email protected]