TLDR:
- Victorian government invests $37 million in US space tourism company through Breakthrough Victoria fund
- Critics question the decision as state debt levels soar and key services face budget cuts
Critics are raising concerns over Victoria’s decision to invest $37 million in a US space tourism company through the state’s Breakthrough Victoria fund. Despite the state’s rising debt levels and budget cuts to key services like mental health and cancer research, the government chose to allocate funds to World View, a company that plans to offer near-space tourist flights from various locations around the world starting in 2026.
The funding for World View was made just days before the Treasurer announced the budget, sparking controversy over the use of taxpayer money for such ventures. The Breakthrough Victoria fund, established in 2021, aims to pick winners in the hope of getting a return on investment but has faced scrutiny for its lack of transparency and accountability.
Economists like Saul Eslake have criticized the decision, questioning the state government’s ability to play venture capitalist given its financial struggles. With debt levels expected to reach $188 billion by 2028, concerns are growing over the sustainability of such investments and the impact on essential services.
Despite calls to shut down the fund earlier this year, the government has extended its life and made cuts to its budget over the next four years. However, critics like Matt Berriman argue that the money committed to the fund should have been redirected to benefit the people of Victoria.
While the state continues to face challenges in balancing its budget and meeting the needs of its citizens, the decision to invest in space tourism has sparked debate over the priorities of Australia’s most indebted and heavily taxed state.
