Billions from Victoria's incoming COVID-19 debt levies and a state debt fund will be redirected to tackle poverty and the housing crisis under a bold push by the Greens.
The State Taxation Acts Amendment Bill 2023 and Victorian Future Fund Bill 2023 are expected to be debated in the upper house when parliament returns this week.
Under the first bill, Victorian businesses with national payrolls above $10 million and multiple property owners would be taxed over 10 years to repay $31.5 billion in COVID-related debt.
Legislation for the state's already established $7.9b future fund would also be tweaked to ensure it can only be used to reduce debt, which is on track to hit $171.4b by mid-2027.
The Greens will move amendments to the reforms to convert the COVID debt taxes to an "ending poverty" levy, redirecting more than $20b to cost-of-living relief through programs.
They also want to amend the future fund legislation so it can only be invested in building more public housing, and will oppose the bill if their change is not passed.
Victoria's mounting debt would be managed over the long-term using the economic benefits of reducing poverty and ending homelessness, the Greens argue.
State party treasury spokesman Sam Hibbins questioned the value in raising billions of revenue from big business and property investors to only reduce debt by about 15 per cent.
"The reality is with the revenue raised from tax changes and the future fund, the state government can tackle poverty, end homelessness and create the fair society we all want to live in," Mr Hibbins said.
The Victorian Greens have been demanding stronger rental supports in exchange for supporting the state government's tax changes but have stopped short of issuing an ultimatum.
Treasurer Tim Pallas has ruled out a rent freeze but the Andrews government plans to release a housing statement in September.
Prime Minister Anthony Albanese announced a $2b social housing fund alongside Premier Daniel Andrews at the Victorian Labor conference on Saturday.
Victoria will receive $496m over the next fortnight as part of the fund and all money will be committed by mid-2025.
The state opposition has vowed to oppose the COVID-19 debt levies and repeal the proposed scrapping of payroll tax exemptions for some "high-fee" non-government schools if elected in 2026.
