CostWeb News
Queensland state budget
Monday, 11 June 2018
Queensland state budget- what you need to know
Summary
Yesterday
the Treasurer Jackie Trad announced the Queensland state government’s budget.
The state government has framed this budget as one that creates jobs, by
investing in infrastructure, education and health to service the growing
population. With private investment still $20bn lower per year than during the
resources boom of 2014-2015, the public sector must fill the investment gap if
the state is to grow and absorb the high population growth. Whilst there are
few surprises in the budget with most of these programs already announced, the
commitment to spending is increased by $3bn since the last budget. It also has
a regional focus by increasing expenditure there.
Background
§
The
state economy is set to grow at a reasonable pace in 2018-19 at 3% which is
lower than NSW or Victoria but higher than WA and South Australia.
§
The
recent increase in coal and LNG prices has boosted state revenues
§
Unemployment
remains stuck at 6.25% compared to a national average of 5.5% mostly as a
result of weaker growth in regional areas following the mining resources
downturn.
§
Strong
population growth of 1.7% is second only to Victoria (2.4%). The state
population is now over 5 million.
§
There
are concerns that the apartment housing market will follow the southern
capitals where values are falling.
§
The
state government remains committed to a 50% renewable energy target by 2030.
§
The
overall government debt (borrowings for long term infrastructure projects)
is heading towards $80bn which makes it very difficult to regain the
states AAA rating
Key Measures - capital expenditures
§
$45.8bn
on infrastructure over 4 years. The largest capital works program since the
2011 flood recovery. This commitment is $3bn higher than in the last budget.
§
$11.6bn
capital expenditure in 2018-19
Road and Rail
§ $4.9bn on road and rail
§
$1bn
on M1 Pacific motorway upgrade between Varsity Lakes and Tugun
§
$160m
over 4 years for Beerburrum to Nambour rail duplication
§
$733m
on Cross River Rail programs, to take it to procurement.
§
$40m
for station upgrades
§
$68m
Ipswich Motorway upgrades between Rocklea and Darra
§
$48m
on Centenary Motorway upgrades
§
$200m
various road upgrades
§
$2m
planning stage 3 Gold Coast light rail from Broadbeach to Gold Coast airport
Other construction
§
$176m
for Rockwood weir construction on the Fitzroy River
§
$125m
for a new state of the art theatre at QPAC in Brisbane
§
$250m
further funds for Townsville stadium
§
$75m
for additional Townsville infrastructure improvements
§
$176m
for Cairns Convention Centre expansions
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$83m
for Port of Gladstone upgrades
§
$115m
for Mackay Ring road
§
$534m
further finds to complete Toowoomba 2nd range crossing
§
$15m
to help Sunshine Coast bid to receive the submarine internet cable come ashore
§
$36m
for the Wangetti off road cycle trail north of Cairns
§
$330m
over 5 years for Great Barrier Reef protection measures.
Health
§
$17bn
overall includes $985 million on new health capital works
§
$570m
South East Queensland Hospital upgrades
§
$84.8m
to upgrade Hervey Bay and Gladstone emergency departments and d
Education
$14bn
overall includes several new capital works:-
§
$308m
for 6 new state high schools at Coomera, Yarrabilba, Ripley and Mango Hill.
Job Creation
§
$155m
back to work program- support for employers taking on eligible unemployed
workers
§
$180m
on Skilling Queenslanders to work – targeted training programs.
Renewable Energy
There is
currently a pipeline of up to $20bn in renewable energy projects with $4.2bn
underway or committed. The government claims that equal priority is being given
to both resources projects (such as Adani) and renewable energy projects
despite its commitment to 50% renewables by 2030. Budget announcements
included: -
§
$50m
grant to support development of concentrated solar thermal storage projects
§
$47m
Advancing Clean Energy Schools program
Other measures
§ $70/tonne waste levy to prevent interstate businesses crossing into
Queensland to dump waste. $100m fund to get recycling up and running
§ $371m to upgrade public transport ticketing systems with contactless
and mobile phone and wearable technologies payment systems.
§
First home owners buyers grant reduced to $15,000
from $20,000
https://budget.qld.gov.au/budget-papers/
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