Queensland's treasurer has handed down a big-spending, pre-election budget, offering up $3.7 billion in new cost-of-living relief — unapologetically plunging the state into deficit.
Fees and charges, including for drivers licences, will be frozen next financial year at a cost of $180 million, in the latest move announced by the government designed to assist Queenslanders.
It adds to the already-announced six-month trial of 50-cent public transport fares, a 20 per cent cut to car registration fees for 12 months, and an increase to the stamp duty threshold for first home buyers.
Unveiling his fifth budget on Tuesday, four-and-a-half months out from the October election, Treasurer Cameron Dick declared the state government had made the "deliberate choice" to put the budget into a now-forecast $2.6 billion deficit in 2024-25 to "help Queenslander households keep their budgets in balance".
The government said it was providing a "record" $11.2 billion in concessions to Queensland families and businesses, including $3.7 billion in new and expanded measures next financial year.
But the budget papers show the state is marching towards $172 billion in total debt by 2027-28, which would attract billions of dollars in interest repayments.
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Mr Dick announced a 'savings' taskforce would seek to claw back $3 billion dollars over four years "to ensure returns to surplus from 2026-27".
Under the plan, a "Smarter Spending Taskforce" would target "non-wage" expenses, including curbing government travel expenditure, with departments and agencies urged to conduct meetings "by video or teleconference wherever possible".
There would also be no new advertising from August, other than public safety and recruitment campaigns, with departments also encouraged to explore "greater use of flexible work arrangements" and agencies asked to reduce the reliance on contractors and external consultants.
Mr Dick pledged that the savings drive would not lead to any public sector job cuts.
Meanwhile, the wage bill for public servants is set to come in at $35.2 billion next financial year – up more than $2 billion from the December projection.
By the end of the forward estimates, it is forecast to make up 41 per cent of government spending.
The budget includes $26.7 billion for Queensland Health in the 2024-25 financial year.
While health is always a key focus of the budget, Mr Dick announced the "10.6 per cent increase in operating funding for Queensland Health" this year was "well above the historical average of 6.9 per cent".
After predicting a deficit of almost $2.2 billion for this financial year, Mr Dick said the government now expected to return a $564 million surplus – thanks to "improved revenue, including royalties and taxes".
The government is expected to pocket $10.5 billion from coal royalties this financial year, which is $1.36 billion more than forecast in the December budget update.
However, the revenue from those coal royalties is expected to fall to $6.2 billion next financial year and then taper out to about $4.5 billion per year over the forward estimates.
An estimated $2.6 billion deficit is forecast for 2024-25, followed by a $515 million deficit for 2025-26.
"From 2025-26, as temporary [cost-of-living] relief measures are wound back, Queensland's net operating position is expected to improve," the budget papers state.
The government is also expected to make $794 million from fines and forfeitures next financial year, then $912 million in 2025-26.
Net debt is forecast to reach $59.8 billion within four years.
Mr Dick said that as the government delivers the cost-of-living measures it is "mindful that we do so in a way that reduces inflationary pressures".
"Queensland Treasury estimates the combined effect of cost-of-living measures from the Miles and Albanese Labor governments will reduce Brisbane's headline CPI growth in 2024-25 by around 1.25 percentage points," he said.
Asked about the state's credit rating, Mr Dick said he was confident it would remain unchanged.
He said his budget made clear the "values and plans" the Miles government will be putting forward when Queenslanders head to the polls for the October state election.
"Queenslanders will be asked to make a choice about their future, not to express an opinion about the past," he said.
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