Queensland State Budget

Key Economic Data

	2015-16 (Est. Act.)	2016-17 (Budget)	2017-18 (Proj.)
Economic Growth	3.5	4	3.5
Inflation	1.5	2	2.5
Unemployment	6.25	6.25	6
Net operating balance	$ 152 m	$ 867 m	$ 1,225 m

 

The Treasurer branded his second Budget as a ‘back to work’ budget, with the focus on innovation, investment and infrastructure.

Advance Queensland, the centrepiece of the Government’s policy platform, received an additional investment of $225 million bringing the Government’s total investment to $405 million over five years. Funding will be allocated to projects such as a biofutures industry roadmap and an integrated healthcare fund.

Foreign Investment Tax

The Budget papers have outlined 1 October 2016 as the start date for the Government’s new 3% transfer duty surcharge for foreign buyers of residential property.
While the Treasurer has indicated a % foreign owned threshold test will apply, it is still unclear who the Government will consider a foreigner or what will be considered residential property under this new tax.

The Government is expecting $15 million from the surcharge in the first year and $25 million annually to 2019-20.

Tax

Stamp Duty Forecast to Rise

Transfer duty is expected to reach $3.06 billion this financial year, down slightly from last financial year’s record $3.08 billion intake. Budget projects an average annual stamp duty growth rate of 5.2% over the four years to 2019-20.

Land Tax Take Tops $1 Billion

Land tax is estimated to grow by 7.3% in 2016-17 to $1.083 billion, with annual growth of 6.5% expected over the forward estimates. Neither the outdated land tax thresholds or the 2009 ‘temporary’ land tax surcharge have been amended in this Budget.

First Home Buyers Grant receives temporary boost

The Government has committed $40 million to increase the First Home Buyers Grant from $15,000 to $20,000 for first home buyers purchasing newly constructed property under $7,000. The $5,000 increase will take effect on 1 July 2016 and apply for 12 months.

 

Infrastructure

$4 billion repatriation from the defined benefit superannuation scheme

The Government’s latest valuations indicate that their defined benefit superannuation scheme is over $10 billion in surplus. In this Budget the Government will repatriate $4 billion, half of which will be used to fund infrastructure and the other half will be used to reduce debt.

Boost to State Infrastructure Fund

An additional $1.5 billion has been allocated to the State Infrastructure Fund, taking the total value to $2 billion over five years.  The funding includes:

• $1.45 billion is being set aside to fund priority projects identified by Building Queensland through its infrastructure pipeline
• $ million to establish the new Cross River Rail Delivery Authority and commence early works
• $180 million to bring forward social and economic projects in regional communities
• $300 million to support ongoing projects
• $20 million to fast track early stages of the infrastructure pipeline through strategic assessments and business cases

Over $10 billion capital works program for 2016/17

The Budget has allocated $10.7 billion for the Government’s capital works program next financial year. This includes a $4.4 billion spend on road upgrades including:

• $400 million on Toowoomba Second Range Crossing
• $2 million Gateway Motorway North
• $97 million for the Northern Roads Package

Investment to switch to new signalling system ahead of Cross River Rail

An investment of $634 million over the next eight years has been announced in the Budget to fund a rail signalling system required for the future Cross River Rail project. The European Train Control System is expected to boost inner-city rail capacity by 20 per cent.

$ million has also been allocated to the Cross River Rail Delivery Authority, which is leading the Government’s efforts to secure the critical project.

Further funding for Townsville stadium

$40 million in additional funding has been allocated to the North Queensland (Townsville) Sports Stadium. This is in addition to the $100 million committed during the 2015 election campaign, bringing the State’s contribution to the project to $140 million. 

Both major Federal parties have also pledged $100 million to the project, should they be elected.

Sunshine Coast

No major new infrastructure projects have been identified in the budget papers for the Sunshine Coast.  Funding has been allocated to existing projects or projects previously announced, including:

• $167 million to complete the Sunshine Coast University Hospital
• $56.9 million for the Bruce Highway, Cooroy to Curra (section A) duplication
• $11 million towards the Sunshine Coast University Hospital, Kawana Way roundabout upgrades
• $25.4 million to commence works on the Caloundra South Primary School

Gold Coast

Funding continues to flow for projects required for the Commonwealth Games. Additional funding has been allocated for Gold Coast Light Rail (stage 2) and various road and rail projects, including:

• $94.5 million out of $420 million for Light Rail (Stage 2)
• $104.4 million out of $163.2 million to duplicate the Gold Coast rail line from Coomera to Helensvale stations
• $40.1 million for Exit 54 Interchange upgrade
• $20 million  to widen Burleigh Road, North Street to Vespa Crescent, to six lanes and $17 million to perform intersection and bridge works

Planning

Funding to support new planning legislation implementation and SEQ Regional Plan development

$57 million has been allocated to Better Planning for Queensland to:

• transition to the new planning system
• complete the integrated review of the State Planning Policy, the State Development Assessment Provisions and the Planning Regulation
• produce the draft South East Queensland Regional Plan

Modernising social housing

A $209.1 million capital program has been outlined in the Budget aimed at modernising the State’s social housing stock. This investment will involve:

• the completion of construction of 368 rental units,
• the purchase of 111 land lots,
• the commencement of construction of a further 277 rental units, upgrades to existing social housing.

> Property Council’s Budget Media Release
> State Budget Papers