May 30th, 2026Rural and regional businesses falling behind under Allan Labor Government

A new survey of regional businesses has demonstrated worsening trading conditions, rising costs, and collapsing confidence under the state government.

The Victorian Regional Chamber Alliance (VRCA) Business Health Survey shows:

• 81.1% of respondents said they had little or no confidence in the State Government – worse than any other level of government.  
• 58.8% of respondents are currently operating at 80 per cent or less of typical sales.
• Only a little over half are drawing a living wage for the significant hours they invest and risk they take.
• 54.2% of respondents believed that tax reform and reduction, regulatory compliance and burdens, and grants and financial support would make business easier.
• 42.3% of businesses did not recruit staff in the previous 12 months, with many reporting severe recruitment and retention difficulties.

Mrs McArthur said: “Regional and rural Victorians are working harder than ever, but are being forced to cut discretionary spending as households grapple with cost-of-living pressures and receive little tax relief – meaning less money flowing through local businesses.