Victorian Treasurer Tim Pallas resigns amid ‘strained’ relationship with premier’s office

Victorian Treasurer Tim Pallas has resigned from his role.

Mr Pallas, 64, made the announcement on Monday, bringing to an end 20 years in state parliament.

Four government sources told The Age the decision comes as his relationship with the premier’s office became ‘strained’ ahead of the release of the state budget.

The treasurer said he had always seen himself as a ‘humble staffer’ and it had ‘been the honour and privilege’ of his life to serve Werribee.

‘I will be resigning both as the treasurer and a member of cabinet, and also as the member for Werribee,’ he said.

‘I have never let a second go by without trying to take the opportunity that this great office has provided, this great opportunity has provided, and turn it into something of very substantial value for the wellbeing of the people of Victoria.

‘Particularly those who need government support and assistance.’

Mr Pallas also said he had been the longest-serving standalone treasurer for the state.

His resignation will trigger a byelection in the seat of Werribee. 

Mr Pallas was first elected in 2006 and assumed the role of treasurer when Daniel Andrews was voted in as premier in 2014. 

He is the latest in a long list of Labor MPs who have thrown in the towel and he joins the ranks of former deputy premier James Merlino, former health minister Martin Foley and former police minister Lisa Neville.

Mr Pallas’ resignation comes after mounting pressure on Premier Jacinta Allan over Labor’s handling of the economy, which came into focus after independent economist Saul Eslake published a critique in The Financial Review in November.

Mr Pallas had announced last Friday that the fire services levy for Victorian home owners would be doubled and he also axed an electric vehicle rebate after the government tries to deal with their deficit of $3.6 billion for 2024.

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