Victoria has been named Australia’s worst state for doing business, finishing last for the second year running in the Business Council of Australia’s annual comparison of taxes and red-tape burdens.

Despite recent planning changes in the state designed to slash housing permit-approval times and spur construction, the 2025 report ranks Victoria eighth, citing high property taxes, uncompetitive payroll tax settings and onerous business licensing requirements.

Labor-led South Australia topped the Business Council’s comparative analysis of state and territory tax and regulatory systems for the third year running. It was praised for low payroll tax rates, streamlined approvals and relatively consistent planning rules.

To come up with its ranking, the Business Council compares each jurisdicti

See Full Page