Victoria named as the worst place to do business in Australia for the fourth year in a row

Australia’s leading business body has called Victoria the worst place in the country to do business, citing its high unemployment rate, high taxes, and complex bureaucracy.

The Business Council of Australia (BCA) released its “regulation rumble”, which ranks the Australian states and territories on several factors, including tax, trading hours, licensing, and red tape.

In its latest rankings, released on Wednesday, Victoria came last, while South Australia came out on top.

BCA chief executive Bran Black said people looking to build and create businesses in the state continued to face “serious challenges”.

“[It has] the highest unemployment rate in the nation, high taxes and unnecessary regulation making it harder for businesses to invest, grow and create jobs,” he said.

“The same problems we identified last year still exist, particularly around payroll tax, property taxes and business licensing.”

The rankings cover 12 months ending in mid-2026, but are subjective, with the BCA favouring lower taxes and less bureaucratic interference.

While Victoria was singled out for criticism, Black claimed issues surrounding red tape were a theme across Australia.

“Unnecessary red tape drives up the cost of doing business, and those costs ultimately flow through to everyday Australians, whether they’re buying a cup of coffee or doing their weekly grocery shop,” he said.

“Cutting red tape means lower costs for businesses and better outcomes for Australians.”

Tasmania was ranked the second-best place to do business in Australia, while the ACT and NT rounded out the top four.

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NSW and Queensland were ranked fifth and sixth, with WA second last.

The latest rankings come as Victoria prepares for an election next month, and both the state government and opposition have made moves to curry favour with businesses.

Premier Ben Carroll postponed controversial work-from-home laws that would have legally protected the rights of Victorians to work from home at least two days a week if they were able to.

These changes will now proceed on July 1 next year.

Under Carroll’s predecessor, Jacinta Allan, the state government had tabled a “better decisions made faster” bill, designed to speed up the planning framework to build homes in the state.

However, this will not come into effect until next year.

Both Carroll and opposition leader Jess Wilson fronted a Victorian Chamber of Commerce and Industry lunch on Tuesday, saying they wanted to back businesses in Victoria to help them and the state grow.

"I want to keep working with you to find competitive advantages and maximise growth and jobs," Carroll said, with Wilson claiming a Coalition government would make businesses a priority.

“We have to get business back at the centre of the economy, investing and creating jobs in this state," she said.

Current polling suggests the race is too close to call, with the Australian Financial Review reporting, while the Coalition may get the most seats, it could fall short of majority government.