Victoria pockets another $1 billion from the TAC
The Transport Accident Commission will deliver Victoria another billion-dollar windfall this year, an $800 million improvement on forecasts in last year's budget.
The Allan government insists the TAC remains financially sustainable as it receives its second dividend above $1 billion in as many years and forecasts a similar payment in 2029.
But the opposition has criticised the move as it lowers the commission's insurance funding ratio, from well above its target to the middle of the range.
State budget papers show that in the 2024-25 financial year, the state government will receive a $1.13 billion dividend from the Transport Accident Commission, up from forecasts of $300 million in the last budget.
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It is the second billion-dollar payment to come from the TAC in as many years after then-treasurer Tim Pallas requested a $1.08 billion dividend in 2023-24 which was approved.
The treasurer has the power to request a dividend or 'capital repayment' from the insurer, after consultation with the organisation and TAC minister.
The most recent dividend means the Victorian government has now received $2.87 billion from the TAC since 2019, including capital repayments of $255 million in that year and $400 million in 2022.
The budget is also forecasting another $1.15 billion dividend in 2028-29, revising previous estimates that would have delivered yearly contributions in the hundreds of millions.
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