ASX winners and losers from the Victorian budget

The Victorian state government handed down its budget today with billions in new taxes and cuts that will create winners …

ASX shares Victorian state 2021 Budget written on chalkboard with colourful balloons

Image Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Victorian state government handed down its budget today with billions in new taxes and cuts that will create winners and losers among ASX shares.

Victorian Treasurer Tim Pallas has gone in the opposite direction of his federal counterpart Josh Frydenberg!

While Frydenberg was all about spending and stimulus, Pallas unveiled $6 billion in new taxes plus $3.6 billion in cuts to public service.

This is despite the fact that the budget deficit for the state in the current financial year is nearly $6 billion better off at $17.4 billion than previously projected.

The ASX shares in better health

But there are some sectors that will be left smiling. Healthcare is one with the Australian Financial Review reporting $7.1 billion for hospitals and the healthcare system including $3.8 billion for mental health.

Medical facilities operators like the Ramsay Health Care Limited Fully Paid Ord. Shrs (ASX: RHC) share price and Sonic Healthcare Limited (ASX: SHL) share price could share in the Pallas love.

Victorian-based medical equipment supplier Paragon Care Ltd. (ASX: PGC) are also likely to be pleased with the news.

Infrastructure gets another leg-up

ASX shares that are exposed to infrastructure construction are another group in the winner's circle. The Andrews government is upping its investments in this area to $22.5 billion for FY22 to FY25. This compares to the previous average $15.5 billion over FY16 to FY25.

This will suit engineering groups like Downer EDI Limited (ASX: DOW) and steel maker BlueScope Steel Limited (ASX: BSL) just fine.

Bearing the tax burden

On the flipside, property develops are seething at the Victorian government as a good chunk of the new taxes are aimed at the sector.

The state is looking to claw $2.5 billion extra through higher stamp duty and land taxes. Property developers that reap the benefits of rezoning will be slugged with a 50% windfall gain tax.

I can't imagine the likes of Mirvac Group (ASX: MGR) and Stockland Corporation Ltd (ASX: SGP) being particularly happy.

The concession to allow developers to get a stamp duty hall pass to sell unsold CBD apartments sitting on their books for a year or more is unlikely to make up for the pain.

Rolling the dice on ASX gaming shares

Pallas is also going after gamblers. Wagering and betting tax is going up to 10% on 1 July this year from 8%.

To the extent that it dissuades punters, the Tabcorp Holdings Limited (ASX: TAH) share price and Crown Resorts Ltd (ASX: CWN) share price could be dealt a losing hand.

On the other hand, it will likely take more than a 2% tax increase to change bad habits.

Motley Fool contributor Brendon Lau owns shares of BlueScope Steel Limited and Sonic Healthcare Limited. The Motley Fool Australia has recommended Ramsay Health Care Limited and Sonic Healthcare Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Unsure man analysing data on laptop.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors had a rough start to the week this Monday.

Read more »

A man slumps crankily over his morning coffee as it pours with rain outside.
Broker Notes

Guess which popular ASX 200 stock Bell Potter just downgraded

Let's see what the broker is saying on this blue chip.

Read more »

Crude oil barrels rocketing.
ETFs

Why did the BetaShares Crude Oil ETF just spike 4%?

This ETF is attracting buyers in today's seller's market.

Read more »

A male sharemarket analyst sits at his desk looking intently at his laptop with two other monitors next to him showing stock price movements
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to snap up these shares.

Read more »

Woman with an amazed expression has her hands and arms out with a laptop in front of her.
Share Gainers

Why BWP, Metcash, Resolute Mining, and SHAPE shares are pushing higher today

These shares are starting the week on a positive note. But why?

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Adairs, ANZ, Aurelia Metals, and Pilbara Minerals shares are falling today

These shares are having a tough start to the week in the red. But why?

Read more »

Miner standing in a mine site with his arms crossed.
Broker Notes

Up 41% in 2025, does Macquarie think Lynas Rare Earths shares have peaked?

The company is up nearly 400% in 5 years.

Read more »

A financial expert or broker looks worried as he checks out a graph showing market volatility.
Share Market News

How far could equity markets fall following the US' attack on Iran?

If oil prices rise, it could be bad news for investors.

Read more »