Greens economic justice spokesperson Sam Hibbins accused Labor of planning an austerity budget that would let landlords and big businesses “off the hook”.

“This doesn’t have to be the case,” Hibbins said. “If the government made big profiteering corporations pay their fair share, they would be able to invest that money in cost-of-living relief for all Victorians.

“Rents, bills, and groceries continue to skyrocket and if the government doesn’t use this budget to step in, already-struggling Victorians will suffer more.”

While last year’s budget included hiked land and payroll taxes, it didn’t go far enough for the Greens, who wanted – among other things – stronger rent controls.

But the Allan government has been warned to stay away from going down the path of a major bank levy, as the federal government did in 2017. The federal levy applies to banks with more than $100 billion in total liabilities.

Shadow treasurer Brad Rowswell said a bank tax would simply be passed onto Victorians in the form of increased mortgage repayments and rents at a time when they could least afford it.

“Victorians need taxes axed, not new and increased taxes imposed on them during this cost-of-living crisis,” Rowswell said.

“More taxes mean more pain for families and businesses who are already being crushed by Labor’s tax regime.”

Loading

Australian Banking Association chief executive Anna Bligh said a state-based baking levy was an “ill-thought-out” and “reckless” proposal.

“It would do nothing but harm the Victorian economy, investment in the state and the 60,000 local banking jobs,” Bligh said.

“Banks are already among the highest corporate taxpayers in Australia, paying over $10 billion in tax each year.”

Asked if the government could rule out new taxes in the new financial year, an Allan government spokesperson said the budget would be handed down on May 7.

“We constantly review our revenue system to ensure it is appropriate to fund the services and infrastructure that Victorians rely on,” the spokesperson said.

“Global economic circumstances mean governments around the world are continuing to fight the aftermath of COVID and the rise in inflation.

“We will continue to deliver the promises we made at the last election and protect the jobs and services that families rely on.”

Get the day’s breaking news, entertainment ideas and a long read to enjoy. Sign up to receive our Evening Edition newsletter here.