Victorian Treasurer Tim Pallas has announced his decision to retire from politics, marking the end of a distinguished career spanning nearly two decades. Pallas, the longest-serving standalone Treasurer in Victoria’s history, described his tenure as a “great honour and privilege” and said the time had come to move on.
His announcement follows the release of the mid-year budget update, which revealed a worsening deficit forecast for 2024-25, growing from $2.2 billion to $3.6 billion. Reflecting on his decision, Pallas expressed pride in his contributions to the state’s economic resilience and stability.
“In fact, after 10 years (and) after being the longest-serving standalone treasurer the state has ever had, having recently worked with the Premier and landed the economic growth statement, and recently the mid-year budget update – I think we can look back on the body of work and say the economy is solid, the fiscal position is improving and sound, and ultimately there’s no great time to leave the great honour that is high office,” Pallas stated. “I am quitting everything and moving on.”
Legacy of economic leadership
Premier Jacinta Allan paid tribute to Pallas, reflecting on their 25-year friendship and collaboration. She highlighted his key role in shaping Victoria’s economic trajectory over the past decade.
“Tim and I first met in 1999, when I was the fresh-faced, newly-elected member for Bendigo East, and he was working in one of the toughest gigs there is – Chief of Staff to the Premier,” Allan said. “Over the next 25 years, we would work together as MPs, Cabinet colleagues, collaborators and builders. Most importantly, as mates.”
Pallas’ leadership as Treasurer saw Victoria achieve remarkable economic growth, with business investment reaching its highest-ever share of economic activity and record levels of job creation.
Challenges and achievements
During his tenure, Pallas handed down 10 state budgets, navigating both economic growth and significant challenges. His final budget in May focused on making “sensible decisions,” though it drew criticism for offering limited relief to struggling sectors.
The mid-year budget update last week revealed that Victoria’s net debt is forecast to rise to $187 billion by 2027-28. To address this, Pallas announced expanded taxes, expected to generate an additional $2.5 billion over the next four years.
Pallas entered Parliament in 2006 as the state member for Werribee and has represented the constituency ever since. His resignation will trigger a by-election in the seat, which was closely contested during the last state election.
The end of an era
Pallas’ retirement brings to a close a decade of service as Treasurer under the leadership of former Premier Daniel Andrews and current Premier Jacinta Allan. Having first taken on the role in 2014, Pallas has left a lasting mark on the Victorian economy and public life.
As he departs the political stage, Pallas leaves behind a mixed legacy of economic reform, fiscal challenges, and a commitment to long-term growth. His departure signals the beginning of a new chapter for both Werribee and the state government.
