In a recent announcement, Queensland’s Treasurer David Janetski revealed a sobering budget forecast for the state, projecting an $8.6 billion deficit for the next financial year. This lack of substantial funding follows a series of financial challenges, including increased costs attributed to the previous Labor government’s policies, a decline in Goods and Services Tax (GST) revenue, and falling coal royalties.
Janetski characterised the government’s approach to budgeting as “calm and methodical,” acknowledging the long-term nature of the challenges at hand, which cannot be resolved within a single term.
Though there are no significant financial windfalls, the budget does include modest measures to assist families with living costs. For instance, families will receive $100 for each primary school student to assist with uniforms and textbooks, alongside an extension of $200 sports vouchers for children. Additionally, energy rebates for approximately 600,000 disadvantaged households will increase by 3.8% to $386 next year. The government is also investing $1.6 billion into an electricity maintenance guarantee aimed at reducing power bills.
In an effort to assist aspiring homeowners, the budget allocates $165 million for the “Boost to Buy” shared equity scheme, which allows eligible residents with as little as a 2% deposit to purchase properties valued up to $1 million. Janetski expressed concern about youth disillusionment regarding home ownership, remarking, “A thousand spots (in the program) right now, I want that to be a thousand dreams.”
The budget highlights significant infrastructural investment, with $4.7 billion earmarked for the development of stadiums and villages for the upcoming Olympic Games, complemented by an additional $446 million over four years for ecotourism initiatives and marketing efforts to attract new airlines to the state.
To address the growing debt, which is set to reach nearly $150 billion next year and potentially $205 billion by 2028-29, the government plans to recover $681 million by establishing its own consultancy arm while limiting external consultancy costs. The public service is projected to increase to over 277,000 employees; however, the government intends to cap the number of non-frontline executive positions to save approximately $18 million.
Despite the bleak financial forecasts, the government maintains optimism, asserting that the current situation could have been exacerbated under Labor administrations. Premier David Crisafulli stated that the government is focused on improving service delivery, addressing previously unfunded projects, and fostering infrastructure to support the state’s growth.