Introduction

The Victorian Labor Government has been one of Australia’s most dominant state political forces over the past decade, winning landslide victories in 2014, 2018 and 2022. However, this electoral success has been accompanied by an extraordinary catalogue of scandals, controversies and governance failures that have raised serious questions about accountability, transparency and the proper use of public funds.

These controversies encompass financial mismanagement, ethical breaches, and administrative failures, each contributing to a complex narrative of political challenges.

These scandals have seriously undermined public confidence in the Victorian Labor Government and created a ubiquitous perception of the prevalence of corruption within it, as verified by a recent survey conducted by the Independent Broad-based Anti-corruption Commission [IBAC], Victoria’s premier agency for investigating corruption.

The same survey revealed abysmally low levels of confidence among the community, businesses, and public officials regarding the IBAC’s ability to detect, investigate, report and prevent corruption in Victoria.

This report provides a comprehensive examination of these issues, organised thematically to highlight patterns of behaviour and systemic problems within the government’s operations.

1. Integrity and Corruption Scandals

1.1 Ambulance Victoria Scandal (2023-2024)

The Ambulance Victoria scandal involves serious misconduct allegations against six employees from its payroll department. The employees were accused of embezzling approximately $3.5 million. The allegations include submitting false claims for overtime hours not worked and failing to log in for scheduled shifts.

The investigation began in early 2023 when a whistleblower within the organisation raised concerns, prompting Ambulance Victoria to refer the matter to the IBAC.

The accused staff members have been suspended while internal and external investigations are underway.

Premier Jacinta Allan described the alleged actions as “disgraceful” and unacceptable for any sector, emphasising the need to let the inquiry conclude before determining further steps.

Despite the controversy, the government has expressed confidence in Ambulance Victoria’s executive leadership during the ongoing investigation.

1.2 Branch‑Stacking Operations (2020–2022)

One of the most significant scandals to rock the Victorian Labor Party involved widespread branch‑stacking operations exposed in June 2020 through investigative journalism by 60 Minutes.

Key findings: The Independent Broad‑based Anti‑corruption Commission (IBAC) conducted a joint investigation with the Victorian Ombudsman that found branch stacking was “widespread” throughout the Victorian ALP. The investigation, known as Operation Watts, revealed:

• Former minister Adem Somyurek led a systematic branch‑stacking regime for years with factional allies, paying for others’ Labor memberships to influence parliamentary candidate preselections
• Public funds were misused for party‑political purposes, including the employment of staff who performed factional work rather than their designated public duties
• Multiple MPs were implicated, including Marlene Kairouz and Robin Scott, who resigned from their ministry positions 
• Federal MP Anthony Byrne provided explosive testimony about the extent of corruption within the party
• Minister Luke Donnellan resigned from the cabinet in October 2021 after being named during IBAC public hearings

Consequences: The joint IBAC–Ombudsman report made 21 recommendations, including the establishment of a parliamentary ethics committee and parliamentary integrity commissioner, both to be implemented by 2024, and a ban on MPs employing close family members in their electorate offices. The report warned that the conduct “could have a deeply damaging effect on public confidence in democracy and its institutions.”

While the investigation found that branch stacking itself was not illegal, the misuse of public funds and parliamentary resources for partisan purposes constituted serious corrupt conduct. The report found evidence of nepotism, forged signatures, bullying behaviours, and attempts to interfere with government grants.

1.3 COVID‑19 Hotel Quarantine Disaster (2020)

The Victorian Government’s hotel quarantine program became the source of one of Australia’s most catastrophic public health failures during the COVID‑19 pandemic.

The crisis: More than 18,000 COVID‑19 infections and 800 deaths were traced back to breaches in the hotel quarantine program, where private security guards failed to follow proper infection control procedures. The program’s failures led to Victoria’s devastating second wave of COVID‑19 in 2020, necessitating one of the world’s longest and strictest lockdowns.

Government response and accountability: A judicial inquiry into the hotel quarantine program found:

• The inquiry was unable to identify a single person responsible for the decision to hire private security guards instead of using Australian Defence Force personnel or police 
• Health Minister Jenny Mikakos resigned in September 2020 after Premier Daniel Andrews told the inquiry that her department was “ultimately responsible” for the botched program 
• No individual was held criminally or administratively accountable for the decision‑making failures

The hotel quarantine failure had enormous economic, social and health consequences for Victoria, contributing to the state’s economic decline and psychological trauma from extended lockdowns. Critics described the lack of accountability as emblematic of a government culture that avoided responsibility for major failures.

1.4 City of Casey Corruption Scandal (2023)

In July 2023, IBAC released a damning report following a five‑year investigation into corruption at the City of Casey, which had significant implications for the Andrews Government.

Key findings: IBAC found that property developer John Woodman paid two councillors more than $550,000 each in exchange for their support to rezone tracts of land in Cranbourne West. The investigation revealed troubling interactions between Premier Daniel Andrews and the developer.

Premier’s involvement: IBAC found that Andrews had asked a lobbyist to apologise to Woodman after his government rejected a planning amendment the developer was seeking. Opposition Leader John Pesutto stated: “What premier whose first duty is to the people more broadly, asks a registered lobbyist to apologise to a property developer for rejecting a planning application?”

Significantly, IBAC chose not to accept Andrews’ evidence over that of a registered lobbyist, indicating serious concerns about the Premier’s credibility. The opposition described this as “further evidence of a culture of secrecy, a complete lack of transparency and a mode of operation by Victoria’s premier where he says one thing in private and another in public.”

1.5 Fire Services Reform Controversy (2016–ongoing)

The controversial firefighters’ union pay deal and fire services reform have been the subject of an ongoing IBAC investigation since 2019.

The scandal: Former emergency services minister Jane Garrett quit cabinet in 2016 rather than sign off on a controversial firefighters’ union pay deal. The dispute highlighted concerns about the undue influence of the United Firefighters Union (UFU) on government policy and spending decisions.

IBAC has been investigating the union’s role in the fire services reform, examining potential corruption in the amalgamation of the Metropolitan Fire Brigade and Country Fire Authority into Fire Rescue Victoria. The inquiry has been conducted largely behind closed doors, with reports suggesting the final findings may be damaging to key government figures.

The timing of Daniel Andrews’ resignation in September 2023, ahead of the release of anticipated IBAC findings, raised questions about whether he sought to avoid accountability for decisions made during his premiership.

2. Electoral and Parliamentary Misconduct

2.1 Red Shirts Rort (2014)

Labor was found to have misused $388,000 in parliamentary allowances to pay political campaign staff during the 2014 election.

The scheme: About 21 past and present Labor MPs breached parliamentary guidelines when staff employed using parliamentary funds were diverted to help campaign for members during the election campaign. This represented a systematic abuse of taxpayer‑funded resources for partisan political advantage.

Investigation and consequences: The rort was subject to Ombudsman and police investigations spanning more than 12 months. Despite clear evidence of public funds being misused, no criminal charges were laid, leading to criticism that there was insufficient accountability for what amounted to electoral fraud funded by taxpayers.

2.2 Second Home Allowance Rorts (2017–2019)

Multiple Labor MPs were found to have improperly claimed allowances intended for country members.

Key cases: 

• In 2017, former Speaker Telmo Languiller and his deputy Don Nardella resigned after being involved in rorting an allowance for country members 
• In April 2019, former Victorian assistant treasurer Robin Scott paid back $60,000 in second‑home allowances he unknowingly received between 2014 and 2016

The scandal led to the creation of an independent tribunal intended to take pay issues out of MPs' control, representing a rare positive reform emerging from the controversy.

2.3 Printing Allowance Misuse (2017)

Upper house MP Khalil Eideh’s electoral office was accused of misusing printing allowances to fund party branch stacking in 2017. A parliamentary‑wide audit found questionable invoices, which were referred to IBAC for investigation, highlighting how parliamentary entitlements were systematically exploited for factional party purposes.

3. Ministerial Misconduct and Bullying

3.1 Adem Somyurek Bullying Allegations (2015)

In May 2015, small business, innovation and trade minister Adem Somyurek was stood down from cabinet after his then chief of staff, Dimity Paul, accused him of bullying, a claim he denied. He resigned in July 2015 after an investigation by the Secretary of the Department of Premier and Cabinet.

This incident was a precursor to Somyurek’s later, more serious involvement in the branch‑stacking scandal that would emerge five years later.

3.2 Steve Herbert’s Dogs (2016)

In November 2016, training and skills minister Steve Herbert resigned for using his taxpayer‑funded driver to chauffeur his two dogs, Patch and Ted, between his Melbourne and Trentham homes.

Herbert told parliament he had arranged for his dogs to be driven without him, but did not know how many times, as the trips were not logged. He repaid $192.80 in travel expenses and donated $1,000 to a Woodend animal shelter before leaving parliament in 2017.

While seemingly minor compared to other scandals, this incident exemplified an attitude of entitlement and casual misuse of taxpayer resources among Labor ministers.

4. Public Sector Politicisation

4.1 Ombudsman’s Damning Report (2023)

In December 2023, Victorian Ombudsman Deborah Glass released a comprehensive report finding that “creeping politicisation” had become a reality in Victoria’s public sector.

Key findings: The investigation, one of the most intensive in the Ombudsman’s 50‑year history, interviewed 45 highly placed public officials and reviewed millions of individual records across more than a dozen agencies. It found:

• A “culture of fear” was preventing Victorian public servants from providing frank and fearless advice to the government 
• Marginalisation of the public sector and erosion of a core Westminster principle: an impartial public service that serves the government of the day while providing “frank and fearless” advice 
• Frequent direct appointments of former ministerial staffers through “rushed and shoddy” recruiting processes, sidestepping open and advertised processes 
• Poor record‑keeping and opaque selection methods undermined public confidence that senior hiring decisions were merit‑based 
• An over‑reliance on consultants rather than developing policy through the public service

Specific examples: The Suburban Rail Loop project was cited as a prime example of problematic decision‑making. The Ombudsman found it “was subject to excessive secrecy and ‘proved up’ by consultants rather than developed by public servants. Its announcement ‘blindsided’ the agency set up by the same government to remove short‑term politics from infrastructure planning.”

Culture of fear: The report noted that “one of the first callers to the investigation’s dedicated submissions phone line stated people were generally ‘shit scared’ of upsetting the government – a sentiment which surfaced often as the investigation unfolded.” Current and former senior public servants were reluctant to be interviewed, fearing retribution.

The Ombudsman found that career insecurity meant many executives were worried about being sacked or being seen as “blockers,” which could lead to cost blowouts as officials were reluctant to push back against politically popular, costly projects.

4.2 Public Sector Expansion

Victoria’s public service expanded by 59% over 15 years to 2024, while the population grew by just 29%. The wage bill increased by 152% over the same period – the largest increase in the nation.

This dramatic expansion raised questions about efficiency, productivity and whether the growth served genuine public needs or instead represented rewards for political supporters and an expansion of government influence.

5. Infrastructure Disasters and Cost Blowouts

5.1 Inadequate Firefighting Infrastructure (2026)

The controversy centres on claims that a large share of Victoria’s firefighting fleet is ageing, unreliable and frequently off the road, leaving limited spare capacity during periods of heightened bushfire risk.

Key issues:

• Career, volunteer and land‑management firefighters say Victoria is in a “fire truck crisis”, with too many trucks beyond their recommended service life and frequent breakdowns or safety defects taking vehicles off the road.
• Critics argue this has created gaps in frontline coverage, forced the reshuffling of limited trucks across regions, and left some communities feeling exposed during high‑risk fire seasons.
• The government and fire agencies acknowledge pressures on the fleet but insist Victoria remains well protected through contingency plans, new‑truck funding and redeployment of resources.

Key evidence: ageing and offline trucks

• For the CFA (the volunteer rural service), campaigners and volunteers say about 800 tankers across Victoria are “out of date and unreliable”, with roughly 230 more than 30–31 years old.
• In some local areas, such as the CFA’s Benalla Group, 14 appliances are reportedly operating beyond their recommended service life, prompting safety concerns from volunteer representatives.
• For Fire Rescue Victoria (FRV, the urban/career service), union and volunteer groups say around 65% of FRV’s roughly 200–213 trucks are past their 15‑year replacement age, with some being 20-35 years old.
• Internal and parliamentary reports describe “critical” shortages when more than 29 FRV trucks are off the road at once. On several days in October and November, up to 34 trucks (about one in six) were reportedly out of service for maintenance or faults.

Other vehicles grounded

• Separately, about 290 rapid‑response 4WD fire vehicles used by Forest Fire Management Victoria (FFMVic) and the environment department were grounded because of mechanical and safety concerns, just ahead of a forecast dangerous fire season.
• These vehicles had been part of a major investment to boost bushfire capability, but were withdrawn pending repairs, increasing pressure on CFA brigades and other resources.

Stakeholders and their positions

Firefighters, unions and volunteers

• The United Firefighters Union, CFA volunteers’ groups and local leaders describe the situation as a “time bomb”, arguing that outdated and failing trucks are unsafe for crews and unreliable for communities.
• They highlight incidents of trucks breaking down on the way to, or at, fires and stress that when trucks fail or are sidelined, regional and farming communities feel the impact first.
• Leaders in farming and volunteer groups note that many volunteers already pay a fire services levy, donate time and, in some cases, contribute their own equipment. They argue they should not also have to compensate for what they see as state under‑investment.

Government and agencies

• The Victorian government points to recent budgets and annual reports to claim the CFA is “better funded and better resourced” than under previous governments, with more money for volunteers, equipment, stations and tools.
• A CFA chief officer has said fleet replacement occurs as budget permits and is complicated by an asset base worth more than a billion dollars.
• The Fire Rescue Commissioner stresses that when critical safety issues are reported, trucks are taken out of service and replaced using a pool of spare appliances and redeployments, and that vehicles are not returned to the fleet until they are safe and operational.

Funding, policy and accountability debates

• Volunteer and union groups argue that, despite nominal funding increases and a recent announcement of about 40 million dollars for new CFA trucks, the service’s real purchasing power has fallen and multi‑year deficits (totalling more than 145 million dollars) have constrained fleet renewal.
• They say previous warnings—going back at least a decade—that most urban fire trucks would exceed their replacement age by 2025 were not acted on quickly enough, leaving today’s backlog of ageing appliances.
• Campaigns such as “Fire Truck Crisis” and petitions following major fires—burning more than 400,000 hectares and destroying nearly 400 homes—call for an independent parliamentary inquiry into whether fleet funding, policy and management decisions left Victoria under‑prepared.
• Critics also claim that an additional state fire services levy has not translated into a modern, reliable fleet, while the government maintains that current investment demonstrates its commitment to emergency services.

Practical impacts on the ground

• Reports from regional brigades describe operating with trucks that lack modern safety features, have unreliable mechanical systems, or experience failures, such as non‑functioning air‑conditioning systems and other defects, during operations.
• Where local appliances are out of service, brigades may rely on distant “reserve” trucks or support from neighbouring brigades, raising concerns about response times and coverage if multiple incidents occur simultaneously.
• With some specialist rapid‑response vehicles out of action, authorities have activated other vehicles, accelerated repairs and explored borrowing emergency response vehicles from other states to maintain readiness ahead of high‑risk seasons.

In essence, the controversy is not that Victoria literally has no fire trucks, but that a significant proportion of its CFA, FRV and land‑management fleets are old, often sidelined for faults and lack sufficient spare capacity—raising sharp debates over funding, fleet management and political accountability at a time of escalating fire danger.

5.2 West Gate Tunnel Project ($10.2 billion and rising)

The West Gate Tunnel project represents one of the most significant infrastructure controversies, transforming from a $500 million election promise in 2013 to a $10.2 billion reality that opened three years late in December 2025.

Cost escalation: Year – Estimated cost 

• 2013 (Opposition promise) – $500 million 
• 2015 (Unsolicited proposal) – $5.5 billion 
• 2017 (Contract signing) – $6.7 billion 
• 2025 (Completion) – $10.2 billion

Controversies: 

• The project was developed from an “unsolicited proposal” by Transurban rather than being designed by state planners 
• Motorists using CityLink are paying tolls for an extra decade, until 2045, to fund the project, even if they never use the West Gate Tunnel 
• The arrangement was criticised as a “sweetheart deal” with Transurban that boosted the private company’s profits at public expense 
• In 2024, builders sued the project engineers over alleged “design errors” that led to massive time and cost blowouts 
• Design errors included numerous problems discovered only after construction commenced, requiring substantial rectification works

The project’s evolution from Andrews’ “shovel‑ready” promise to a massively delayed and over‑budget reality exemplified concerns about rushed political decision‑making overriding proper planning processes.

5.3 Metro Tunnel Blowout ($15.5 billion)

Initially estimated to cost $11 billion, the Metro Tunnel project blew out to $15.5 billion. Originally slated for completion by 2025, the project faced up to 12 months’ delay in the construction of the final stations.

CFMEU “ghost shifts” scandal: In 2023, the Metro Tunnel became embroiled in the CFMEU corruption scandal when it was revealed that taxpayers were being rorted for unfilled “ghost shifts” on the major project site.

• Subcontractors submitted false invoices for shifts that were never worked, inflating the project’s costs 
• The labour‑hire company MC Labour, which had a near‑monopoly on labour‑hire services at the Metro Tunnel site with CFMEU support, was at the centre of the allegations 
• Two CFMEU delegates were dismissed following the investigation 
• Industry insiders estimated the fraud may have cost taxpayers “many millions” of dollars

The scandal represented systematic corruption on one of Labor’s flagship infrastructure projects, with the CFMEU using its influence to facilitate fraudulent billing practices.

5.4 Suburban Rail Loop ($35–125 billion estimated)

The Suburban Rail Loop (SRL) has become perhaps the most controversial infrastructure project in Victorian history, with cost estimates ranging widely and serious questions about its viability and value for money.

Cost uncertainty: 

• Original 2018 projection: up to $50 billion for the complete project 
• 2021 business case: $30.7 billion to $57.6 billion for eastern and northern sections 
• Parliamentary Budget Office estimate: approximately $125 billion, including operational and ancillary expenses 
• Current official estimate for SRL East alone: $34.5 billion (widely expected to increase)

Governance failures: Infrastructure Australia released a scathing assessment in March 2025, expressing “low confidence” that SRL East could be completed within budget. The report found:

• “The costs, benefits of whole SRL, including SRL Airport and SRL North, are undefined” 
• Cost estimates produced in 2020 do not reflect design and scope changes undertaken in recent years 
• Industry‑wide cost increases since 2020 add further risk and uncertainty 
• The economic justification for SRL East and SRL North may be exaggerated 
• Infrastructure Australia recommended the government prepare an “exit strategy” should the project need to be scrapped

Political decision‑making: The Ombudsman’s 2023 report highlighted the SRL as a prime example of politicised decision‑making, noting it was “subject to excessive secrecy and ‘proved up’ by consultants rather than developed by public servants.” The announcement “blindsided” Infrastructure Victoria, the independent agency established by the same government to remove short‑term politics from infrastructure planning.

The project’s planning and approval process exemplified concerns about a government that made major spending commitments based on political considerations rather than rigorous public‑sector analysis, potentially wasting tens of billions of dollars of public money.

5.5 North East Link ($26 billion and rising)

The North East Link project, with an estimated cost of $26 billion, has been plagued by serious construction issues.

Sinkhole incident (January 2026): In January 2026, a sinkhole approximately 8 metres wide and 5 metres deep opened up at AJ Burkitt Oval in Heidelberg, above the route where two tunnel‑boring machines were working. The Victorian Infrastructure Delivery Authority confirmed tunnelling works had been halted while investigations continued.

Local residents expressed fear about the safety of their homes, with one stating: “With this sinkhole appearing, I mean, I think everyone now is very nervous, wondering if their home is safe.”

Corruption allegations: Leaked files in 2025 revealed complaints of “rampant rorting, intimidation and kickbacks” across Big Build projects, including North East Link, that had been secretly lodged with Victorian government authorities.

First Nations Traffic Management alleged they were denied work on the North East Link after refusing to comply with “a disgraceful (and illegal) demand for bribes to initiate discussions with the CFMEU regarding an EBA.” This alleged bribery request was believed to have come from an intermediary with ties to company leadership and senior union officials.

5.6 Commonwealth Games Cancellation Fiasco (2023)

In one of the most embarrassing political failures, Victoria withdrew from hosting the 2026 Commonwealth Games, costing taxpayers $589 million even though the event never took place.

Government failures: A parliamentary committee investigation concluded in March 2025 that the government’s multi‑city proposal was:

• Overly ambitious and not feasible in the timeframe available 
• Subject to inadequate planning and consultation 
• Lacking appropriate infrastructure in the regional cities selected 
• Approved by Treasury despite concerns that costs would exceed benefits

The committee found the decision to cancel was correct, but the high costs and inability to host should have been discovered much earlier. The report stated: “A hasty political decision was made by the then Andrews Labor government to support the Commonwealth Games in the proposed multi‑city model, but the government did not undertake proper due diligence.”

Accountability: The final report named Daniel Andrews, Jacinta Allan, Martin Pakula and Tim Pallas as the key ministers who shared responsibility for the withdrawal. The committee also accused the state government of impeding the inquiry’s ability to collect vital evidence.

The Commonwealth Games debacle exemplified the consequences of politically driven decision‑making without proper public‑sector scrutiny, as warned by the Ombudsman’s report on public‑sector politicisation.

5.7 Big Build Cost Overruns

The Victorian Auditor‑General identified $11.66 billion in cost overruns in 2024 alone, consistent with previous years’ blowouts of over $11 billion annually since 2022. The cumulative blowouts across the “Big Build” program have exceeded $40 billion, with projects including the Metro Tunnel, North East Link, West Gate Tunnel and the Suburban Rail Loop all experiencing massive cost escalations.

The Auditor‑General warned that infrastructure cost blowouts, combined with debt and deficits, pose serious long‑term risks to the state’s financial sustainability. Weaknesses in project planning, risk management and transparency continue to drive these overruns.

6. CFMEU Corruption and Criminal Infiltration

6.1 Organised Crime Infiltration (2024–2025)

In July 2024, Nine newspapers published explosive allegations that underworld figures and bikie gang members had infiltrated major Victorian construction projects through the Construction, Forestry and Maritime Employees Union (CFMEU).

Government response: Premier Jacinta Allan labelled the alleged behaviour “thuggish and appalling” and took several actions:

• Asked Labor’s national executive to immediately suspend the CFMEU construction division from the Victorian Labor Party 
• Referred allegations to Victoria Police and IBAC 
• Requested the Federal Government review and potentially terminate the CFMEU enterprise bargaining agreements on Victorian construction sites

CFMEU Victoria branch secretary John Setka resigned after 12 years in the role on the evening before the investigation’s publication.

Union placed in administration: Following an emergency meeting, the CFMEU’s national office assumed all senior executive powers of the joint Victoria/Tasmania branch and placed it into administration. The South Australian branch was also placed into administration due to being under Victorian control.

6.2 Ongoing Criminal Allegations (2025)

In March 2025, new 60 Minutes revelations exposed additional allegations of criminal behaviour by CFMEU figures, particularly in Victoria.

Key allegations: A special investigator appointed after the union was put into administration in 2024 alleged:

• Systematic “protection racket” operations on government construction sites 
• Individuals might only come to a worksite once a week or once a month, but receive full‑time pay 
• A network of gang figures spread across the Melbourne metropolitan area, working on government sites 
• Bikie members and organised crime figures working “side by side” on worksites owned and operated by the Victorian state government

Cover‑up allegations: The investigator accused the Victorian Labor Government of covering up the extent of the corruption. Opposition Leader Brad Battin stated: “The management of a union is working side by side with bikies and organised gangs on worksites owned and operated by the Victorian state government.”

Operation Hawk: Premier Allan announced the establishment of Operation Hawk, a police task force investigating organised crime and unlawful activities at construction sites. However, Victoria Police subsequently clarified that Operation Hawk had already been operational before the new allegations, and that its scope had simply been expanded.

Detectives from the financial crime squad have conducted assessments of more than 55 distinct reports made to police regarding CFMEU‑related criminal activity.

6.3 Political Donations and Influence

The CFMEU has been a major donor to federal and state Labor, with Liberals claiming $1.5 million in donations to Labor in just the past five years. In exchange, critics alleged the Albanese Government promised to scrap the Australian Building and Construction Commission (ABCC), the government watchdog overseeing the union.

The relationship between Labor and the CFMEU raised serious questions about whether political donations influenced government policy and enforcement decisions, allowing corruption to flourish on government‑funded construction projects.

7. Financial Mismanagement and Debt Crisis

7.1 Victoria’s Debt Explosion

Victoria has become Australia’s most indebted state, with the lowest credit rating among all Australian states (AA).

Debt statistics: Metric – Figure 

• Net debt (2025) – $150.9 billion 
• Projected net debt (2028) – $187 billion 
• Debt growth since 2014 – 415% 
• Economic growth since 2014 – 29% 
• Debt per Victorian (2028) – $25,000

Debt has grown fifteen times faster than the economy, representing what critics describe as catastrophic fiscal mismanagement.

7.2 Operating Deficits

Victoria recorded an operating loss of $2.6 billion in 2024–25, bringing accumulated losses to $50.6 billion over the previous six years. Despite the Victorian Auditor‑General noting some improvement, the state remains on an unsustainable fiscal trajectory.

Interest payments on government debt are forecast to become the fastest‑growing spending item, increasing by 44% over four years to 2028. By 2028, Victoria’s interest payments on debt will grow to almost 9% of total spending, representing an almost fourfold increase from the 2000–2023 annual average of 2.6%.

7.3 Credit Rating Downgrade

Victoria’s credit rating has been downgraded to AA, the lowest of any Australian state. Global rating agencies have put the Victorian Government on notice to reduce debt, rein in operating costs and demonstrate fiscal restraint ahead of the November 2026 election.

Should major ratings agencies follow through with threats to further lower the state’s credit rating, interest rates paid on state debt would rise, further exacerbating the fiscal crisis.

7.4 Economic Decline

Professor Gigi Foster from UNSW Business School identified deep structural problems in Victoria’s economy beyond poor fiscal management:

• Household income per capita was the second lowest in the nation in 2023–2024 
• Victoria’s public service expanded by 59% while the population grew by just 29% over the past 15 years 
• The wage bill increased by 152%, the largest increase in the nation during the same period
• The expansion of the public sector relative to the private sector threatens innovation and efficiency

Economist David Hayward described Victoria’s improved 2024–25 budget position as “good luck rather than sound financial management,” primarily due to increased Commonwealth grants rather than state government fiscal discipline.

The Institute of Public Affairs concluded: “The Victorian state budget demonstrates the consequences of a decade of reckless and irresponsible economic management. Generations of Victorians are going to be left with a bill they will have to pay with little, if anything, to show for it.”

8. Law and Order Controversies

8.1 Bail Reform Controversies (2025)

In March 2025, the Allan Government introduced controversial bail law amendments that faced criticism from across the political spectrum.

Changes implemented: 

• Reclassification of home invasions and carjackings as more serious offences 
• Tougher bail tests implemented 
• Youth offenders are no longer remanded in custody only as a “last resort” 
• Accused of Schedule 2 crimes must show “compelling reasons” for bail, reversing the previous onus

The Coalition criticised the changes as “weak,” while human rights organisations protested the amendments. The government faced a political dilemma: appearing soft on crime to conservatives while being accused of eroding human rights by progressive advocates.

8.2 Crime Statistics Crisis (2025)

In March 2025, alarming crime statistics revealed a 13.2% rise in the state’s crime rate – the highest increase since 2016. Offences committed by minors aged 10 to 17 reached levels not seen since electronic record‑keeping began in 1993.

Opposition Leader Brad Battin accused the government of failing to ensure the safety of Victorians, stating: “Labor lost control and Victorians are paying the price.”

8.3 Police Misconduct Allegations (2025)

Premier Allan faced allegations of misleading the public about crime statistics and police reporting in March 2025. When questioned, Allan declined to clarify whether she had misled the public or been misinformed by Victoria Police, asserting instead that she was relying on insights from the new police commissioner.

Allegations of corruption and misconduct from a former senior police officer added to the scrutiny, raising questions about the relationship between the government and Victoria Police.

9. Transparency and Accountability Failures

9.1 Country Fire Authority (CFA) Annual Report Controversy (2026)

In January 2026, Premier Jacinta Allan was accused of “dishonesty” with Victorians after the CFA’s annual report revealed inconsistencies.

The controversy: 

• Allan initially claimed the latest CFA annual report could not be finalised 
• The CFA subsequently confirmed the report was finalised on 11 November 
• The minister confirmed receiving it in early December 
• Allan repeatedly provided incorrect information to the public about the report’s status

Opposition Leader Jess Wilson stated on Peta Credlin’s show: “What we’ve seen over the past week, Peta [Credlin], is the Premier repeatedly misleading Victorians.” 

The incident exemplified ongoing concerns about government transparency and accountability.

9.2 Obstruction of Parliamentary Inquiries

Multiple parliamentary inquiries have accused the Allan Government of impeding investigations and withholding evidence.

The Commonwealth Games inquiry committee accused the state government of impeding its ability to collect vital evidence. In 2025, the government was criticised for “fighting to keep secret documents that would further expose CFMEU bad behaviour on government‑run Big Build sites.”

This pattern of obstruction suggested a government more concerned with avoiding political damage than ensuring accountability and transparency.

10. COVID‑19 Pandemic Response Controversies

10.1 World’s Longest Lockdowns

While not strictly a “scandal,” Daniel Andrews’ pandemic response became deeply controversial. Victoria endured the world’s longest cumulative lockdown period, severely impacting the state’s social cohesion, mental health and economy.

10.2 Authoritarian Enforcement

Andrews oversaw what critics described as “weaponised police brutality” during COVID‑19, with some of the most violent arrests filmed and sent viral around the world, damaging Australia’s reputation for human rights.

10.3 Public Housing Tower Lockdowns

The heavy‑handed response included the controversial lockdown of public housing towers, which occurred with minimal notice and was criticised as discriminatory against vulnerable communities.

10.4 Economic Devastation

The extended lockdowns “all but decimated the state’s economy,” contributing to Victoria’s current debt crisis and economic decline relative to other Australian states.

Conclusion

The catalogue of controversies, scandals and fiascos documented in this report reveals systematic failures in governance, accountability and financial management within the Victorian Labor Government over 15 years.

Key themes: 

• Integrity crises: Widespread branch stacking, misuse of public funds, and corruption investigations have undermined public confidence in democratic institutions 
• Infrastructure disasters: Tens of billions of dollars in cost overruns, poor planning and politicised decision‑making have wasted enormous public resources 
• CFMEU corruption: Systematic infiltration of government construction projects by organised crime figures represents a fundamental failure of governance and law enforcement 
• Financial catastrophe: Victoria has become Australia’s most indebted state with a downgraded credit rating, leaving future generations with massive debt and little to show for it 
• Public‑sector politicisation: A culture of fear and secrecy has replaced frank and fearless advice, leading to poor decision‑making and wasteful spending 
• Accountability vacuum: Obstruction of inquiries, misleading statements and failure to hold individuals responsible have created an accountability crisis

Legacy

Daniel Andrews’ near‑decade in power has been described as leaving Victoria “in worse shape than he found it with crippling debt.” His successor, Jacinta Allan, has inherited not only massive fiscal challenges but also ongoing scandals involving CFMEU corruption, infrastructure failures, and questions about government transparency.

The Institute of Public Affairs concluded that Andrews was “not just a successful electoral politician” but “a tectonic political figure whose premiership fundamentally reshaped the state to enable the exercise of untrammelled power through a complacent media, a cowed business community and a politicised public sector.”

As Victoria approaches the November 2026 election, the state faces net debt approaching $187 billion, infrastructure projects billions of dollars over budget, ongoing IBAC investigations, and serious questions about whether the government has learned from its failures or will continue the patterns of behaviour documented in this report.

The comprehensive record of controversies and scandals presented here demonstrates that while electoral success may have validated Labor’s political strategy, the cost to Victoria’s finances, institutions and public trust has been profound and will take generations to repair.