Following the resignation of
Daniel Andrews on 26 September 2023, a
party caucus was held the following day. Allan was elected as Leader of the Labor Party and consequently the 49th
Premier of Victoria unopposed after negotiations within party factions. She is the second woman, after
Joan Kirner, to lead the state. Andrews had planned extensively for Allan's succession. In the years prior to his resignation, he had grown their shared Left faction to significantly outnumber the Right, ensuring Allan could fend off any leadership challenge. The episode was interpreted by some commentators as indicating she did not hold the same level of internal authority as her predecessor. On 19 May 2024, while attending the Labor State Conference, Allan was
impacted by a protest in opposition to Labor policies regarding the ongoing Israel Hamas conflict. Security and police found themselves outnumbered by the rally, and Allan and the Australian prime minister were temporarily detained within the venue. Allan later spoke against the protesters, accusing them of bringing violence, antisemitism and homophobia to the event, which she said disgusted her. A statement from Trade Unionists for Palestine said it had support from numerous unions for the demonstration, as well as other pro-Palestinian groups such as Mums for Palestine. "ALP in both state and federal government is aiding and abetting the genocide of Palestinian people and must be called out and condemned at every opportunity," the statement said. In December 2024, Allan's
Treasurer Tim Pallas resigned from the position, as well as from his seat of
Werribee. This triggered a
by-election which was held on 8 February 2025. Werribee, a traditionally safe seat for Labor that was held on a two-party-preferred vote of 60.9% at the
2022 election, saw Labor's primary vote collapse to 28.6% and its two-party-preferred result reduced to 50.82%. Although Labor candidate
John Lister held onto the seat, the result was interpreted as a major loss for the government. Allan later acknowledged the government needed to do more to address voters' concerns, with Deputy Premier
Ben Carroll stating the party had heard voters "loud and clear". The same poll indicated Labor's primary vote had fallen to 29% while the Coalition had risen to 41% When asked if she would stand aside at the request of her colleagues, Allan responded that she was a "fighter" and focused on "those things that Labor governments focus on for Victorians" The polling led to speculation among political commentators about a potential leadership challenge following the upcoming federal election, with Carroll as well as transport minister
Gabrielle Williams mentioned as possible successors. The timeline was expedited following a brawl involving machetes at Northland Shopping Centre in Melbourne's north in June 2025, with Allan announcing an immediate ban on sales effective within days. The government established a 90-day amnesty period allowing people to surrender machetes at disposal bins located at police stations. After the amnesty window ended in November 2025, those found carrying machetes faced penalties of up to two years' imprisonment or fines exceeding $47,000. The budget also forecast a modest operating surplus of $1.6 billion for 2025–26, Victoria's first since before the COVID-19 pandemic, though economists noted this figure excluded the state's substantial infrastructure spending. The government announced cost-of-living measures including free public transport for children and seniors, while later seeking to attract private investment from superannuation funds for infrastructure projects. Economists warned that without structural changes to rein in operating costs, the state's interest bill—forecast to reach $10.6 billion annually by 2028–29—would exceed total spending on some social services. The bill passed both houses of parliament and was signed into law in November 2025, following nearly a decade of advocacy and negotiation that began under the Andrews government in 2016. The legislation establishes a permanent representative body, Gellung Warl, comprising three arms: the elected First Peoples' Assembly, a truth-telling body to continue the work of the Yoorrook Justice Commission, and an accountability mechanism to monitor government progress on Closing the Gap. Allan described the signing as marking a "new chapter" in the state's history, "founded on truth, guided by respect and carried forward through partnership". The opposition Coalition voted against the legislation, with Brad Battin stating that a Liberal Nationals government would repeal the treaty if elected. In August 2025, Allan announced plans to introduce legislation enshrining the right for Victorian workers to work from home at least two days per week. The proposal was formally detailed in March 2026, with the government confirming the laws would take effect from 1 September 2026, covering all employees who could "reasonably" perform their duties remotely, with a delayed commencement of 1 July 2027 for workplaces with fewer than 15 employees. Disputes would be handled by the Victorian Equal Opportunity and Human Rights Commission and, if unresolved, by the
Victorian Civil and Administrative Tribunal. The Committee for Melbourne criticised the plan as a "complete overreach" that would make Victoria "too hard to do business", while the Opposition Leader Brad Battin indicated possible support, stating his party would review any legislation to ensure it supported "flexibility, productivity and personal choice". She also launched a campaign to sell more Victorian products to Chinese consumers. In late March 2026, Allan announced that public transport would be made free for April of that year due to the
2026 Iran war and the resulting fuel crisis.
Housing Allan has made increasing housing supply a central focus of her premiership. In 2024, she announced a proposal to overhaul planning rules to allow taller buildings and increased housing density near train and tram stations in Melbourne. In October 2024, Allan announced a review into making it easier to subdivide or build multiple houses on a block, stating that she wanted Victoria to be the "townhouse capital of Australia." The streamlined rules took effect in October 2025, reducing approval times for subdivisions and second dwellings from more than 60 days to 10 business days under the expanded VicSmart process. In September 2025, the government released draft maps for 25 of the 50 proposed centres, showing maximum building heights of up to 16 storeys in suburbs including
Hampton,
Oakleigh,
Kew,
Auburn,
Hawthorn, and along
Sydney Road in
Coburg and
Brunswick. The proposal attracted criticism from some local residents and the opposition, with Liberal MP
James Newbury accusing the government of "trying to turn
Bayside into the
Gold Coast". The reforms proposed three new planning streams to reduce permit approval times: 10 days for stand-alone homes and duplexes, 30 days for townhouses and low-rise developments, and 60 days for larger developments, compared to the existing average of 140 days. The government argued the towers were outdated, unsafe and energy-inefficient, and promised to replace them with modern homes while increasing the number of residents from 10,000 to 30,000 through a mix of public, community and affordable housing. However, the announcement was made without prior consultation with residents, many of whom learned of the plan through leaflets distributed on the same day as Andrews' press conference. In October 2024, a class action lawsuit on behalf of 479 households from three towers in Flemington and North Melbourne proceeded to the Supreme Court, arguing the government failed to properly consider residents' human rights and had not adequately explored alternatives such as retrofitting. A parliamentary inquiry into the redevelopment began in June 2025, hearing evidence from residents who described the plan as "reckless, arrogant, foolish, undermining and insulting." Advocacy groups expressed concern for elderly residents, with the Housing for the Aged Action Group stating that many had expected to live in the towers for the remainder of their lives. The researchers called for the government to independently test and publish site-by-site evidence on renewal options before committing to demolition. The report, commissioned by the federal government and tendered to a Queensland inquiry, alleged that under former boss
John Setka the union had descended from a trade union into a "violent, hateful and greedy rabble" that "cultivated the company of underworld figures" and bikie gangs. Kilkenny acknowledged that she had instead spoken to a government relations adviser and had not followed up, stating that "in hindsight, we can always look at things and think things could have been done differently". Opposition Leader Jess Wilson accused Allan of a "failure of leadership" for not publicly addressing the allegations, noting that as the minister responsible for infrastructure during the Big Build, Allan had "overseen corruption that is costing every Victorian household more than $5,000." == Political positions ==