There is an expected net operating surplus of $867 million in 2016-17, which would be the state's largest since 2006-07.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The government's general debt is expected to rise from $35.7 billion in 2015-16 to $37.76 billion in 2016-17 and $38 billion in 2017-18, which was $10.42 billion lower than was forecast the 2014-15 budget.
Debt was forecast to be $38.66 billion by the end of the forward estimates in 2019-20.
Actual government debt was forecast to rise from $75.27 billion in 2015-16 to $78.87 billion in 2019-20.
The combined surplus over the four-year forward estimates was forecast to be $3.15 billion.
Economic growth in Queensland is expected to rise from 3½ per cent in 2015-16 to 4 per cent in 2016-17.
That was due largely to a surge in overseas exports to about $100 billion in 2019-20, thanks largely to an increase in LNG production.
Queensland's unemployment rate was forecast to be about 5.5 per cent for the duration of the forward estimates.
Revenue from mining royalties for the period between 2014-15 and 2017-18 has been revised down by $6.7 billion due to falling commodities markets.
At a glance
- Operating surplus of $867 million forecast for 2016/17
- $4.7b in revenue write-downs since last budget
- 2.9 per cent operating expenses growth a year, over forward estimates
- 3.2 per cent revenue growth a year, over forward estimates
- $37.8b general government sector debt, $75.3b total debt in 2016/17
- Total debt forecast to hit $78.9b in 2019/20
- $4b to be taken out of QSuper defined benefit scheme to fund infrastructure and pay down debt
- New fiscal strategy to not let public service employee increases outstrip population growth rate
- $225 million added to Advance Queensland innovation scheme, including $40 million to poach businesses from interstate and overseas
- Increased emphasis on regions, including $100 million jobs package, $180 million infrastructure program and relief for drought-affected farmers.
The winners
- Regional Queensland: $100m for "back to work" jobs package for regional Queensland, including payments of up to $15,000 to employers and subsidised Certificate 3 courses, plus a five-year $77.9m rural assistance and drought package
- Public Transport Users: $229.9m over four years to reduce public transport fares, plus a $50m downpayment for Brisbane's Cross River Rail
- First homebuyers: First Home Owners' Grant for newly constructed dwellings to increase from $15,000 to $20,000 for 12 months
- Innovators: An additional $225 million for the Advance Queensland program to encourage development of innovative products and drive innovation in regional Queensland
The losers
- Foreign property investors: Foreign buyers of residential property to be hit with a 3 per cent surcharge, a move the Property Council has warned will increase costs to homebuyers
- Tax dodgers: Office of State Revenue to increase compliance relating to key taxes, such as land and payroll tax, and crack down on taxpayers incorrectly claiming to be not-for-profit organisations.