QLD State Budget 2021 – 2022
QLD State Budget 2021 - 2022
Message from the Treasurer
Queensland’s economic recovery from COVID-19 is well underway, reflecting our success in containing the virus and the strength of our government’s Economic Recovery Plan.
Our domestic economy has grown faster than the rest of Australia. Queensland has recovered more jobs than any other state or territory. And we are outperforming the nation on a range of household and business indicators.
It is no surprise that more Australians are flocking to Queensland. Our state received 30,000 net interstate migrants in 2020, and we are expecting another 85,000 Australians – the equivalent of a city the size of Rockhampton – to call Queensland home over the next 4 years. Meaning our growing state will need more and better roads, schools, hospitals and support programs.
The Hon. Cameron Dick MP
The key numbers:
- Total government debt will grow to $116.07 billion by June 2023, $6 billion lower than expected in December. Net debt will reach $39.02 billion by 2023-24, compared with $138.35 billion in Victoria and $96.68 in NSW, before peaking at $42 billion the following year.
- The 2020-21 deficit figure now sits at $3.8 billion, with a return to surplus of $153 million by 2024-25. A total of $750 million found through efficiencies last financial year has the government on track to meet its $3 billion savings plan over four years.
- Queenslanders can expect to pay no new or increased taxes. But the money flowing back to government coffers is forecast to grow by 9.4 per cent in 2021-22, and an average of 2.3 per cent across the following three years, driven by improved transfer duties and recovering employment and business conditions.
- The state’s economy is expected to have grown by 3.25 per cent this financial year, more than double the national 1.7 per cent growth rate, after the 0.7 per cent drop recorded last year. But Treasury forecasts this rate to slow to 2.75 per cent for each of the following years.
- Treasury expects unemployment to fall from 7 per cent in 2020-21 to 5 per cent by June 2025. The Treasurer said the state had also recovered as many jobs as had been lost during the pandemic.
- $350 million Industry Partnership Program to support business, industry and research institutions
- $177 million for the care of public patients at the expanded Springfield hospital
- $60 million for round two of the Land Restoration Fund
- $320 million for the Skilling Queenslanders for Work initiative over four years
- $140 million for the Back to Work program over four years
- $41.3 million over two years into racing industry via revenue from the state’s Point of Consumption Tax
- $22 million for detailed design and cost analysis for pumped hydro at Borumba Dam
- $20.8 billion for Queensland Health operations
- Including $482 million to relieve pressures in emergency department capacity, elective surgery waitlists and for the Nambour Hospital Redevelopment
- $2 billion for a Hospital Building Fund with annual interest earnings to be spent on new hospital and health infrastructure.
- $480 million to continue the COVID-19 response including fever clinics, contact tracing, testing capability, vaccination rollout, compliance activities, facilitation of quarantine
- $1.5 billion, on top of an existing $500 million, for a new Renewable Energy and Hydrogen Jobs Fund with interest to be used by government firms to set up projects.
- $500 million for the Carbon Reduction Investment Fund with earnings to the used for land restoration
- $270 million over five years to maintain Great Barrier Reef quality
- $16.8 billion for Education Queensland operations
- $913.7 million for 10 new state schools to open across 2023 and 2024.
- $508.3 million for new and upgraded infrastructure in existing state schools
- $22 million for the continued provision of universal access to kindergarten
- $14.668 billion for capital works and projects
- $30 million to fast-track social housing projects and initiatives
- $23.7 million to support the housing and homelessness services
- $1 billion for new Housing Investment Fund, with interest earnings to be used for projects
- $80 million for training workers or helping them earn qualifications
- $100 million for a Business Investment Fund to help small and medium-sized firms innovate and restructure.
- $73 million over four years to attract film production to Queensland
After Queensland set up its own clinics to fast-track vaccinations, the government expected the Commonwealth to reimburse a portion of the costs under arrangements still being finalised. Mass vaccination sites are planned to operate when Pfizer supplies improve.
International relations and China
Despite some relaxation of China’s restrictions on Queensland coal exports next year, an expected return to normal has been pushed back beyond this point and the forward estimates.
The $20.85 billion in operating funding this coming financial year will represent a 13 per cent rise over two years, with a new $2 billion Hospital Building Fund to address growing pains.
In addition to new schools already planned, the government will pour $913.7 million into 10 new state schools in high-growth areas to open across the south-east corner in 2023 and 2024. Another $500 million is set for infrastructure at existing sites.
The government plans to spend $52.2 billion on infrastructure over the next four years, with 61 per cent of the capital works to occur in the regions. A total of $1.9 billion will be spent to increase the supply and quality of social housing.
Highlights for Business:
- $350 million Industry Partnership Program providing small and medium enterprises and research institutions in Queensland with tailored support that strengthens local supply chains to create and sustain jobs. The program will support maturing industries to adopt to new technologies, assist rapidly growing sectors and emerging industries
- the new $2 billion Queensland Renewable Energy and Hydrogen Jobs Fund (see below).
- Support measures for small business includes the Big Plans for Small Business Strategy, which maps out how $140 million of support for small business will be delivered. This comprises $100 million for a Business Investment Fund, support to establish a permanent Queensland Small Business Commissioner and $30 million to increase small business skills and capability through grants and other support for small business.
- This Budget commits up to $140 million over 4 years for a revitalised Back to Work program to provide eligible businesses the confidence to employ Queenslanders who have experienced a period of unemployment and to help workers facing disadvantage in the labour market.
- The 2021–22 Budget includes $71 million to support the Queensland screen industry, including $53 million to continue the Screen Queensland Production Attraction Strategy, $10 million for the Post, Digital and Visual Effects incentive, $4 million for the Screen Finance Program, and $4 million for a North Queensland Regional Program.
- A further $7 million has been allocated to support the live music industry in 2021–22.
Highlights for our Regions:
- $1.1B for the Darling Downs & South West Hospital & Health service.
- $67.7M to maintain improve and upgrade schools on the Darling Downs
- $9.8M from 2021 to 2024 for regional councils to undertake job creating maintenance and minor infrastructure projects on the Darling Downs
- $20.8M in 2021 to 2022 to expand and improve social housing for the Darling Downs
- $13.2M for the construction of projects art multiple sites across the Darling Downs and South West Hospital and Health Network
- $70M for the Building Rural & Remote Health Program
- $245.2M for the provision of financial assistance for capital works to disaster affected communities in 2021 – 2022.