Federal Budget 2023: What it means for regional Queensland
Regional Queensland will receive millions in infrastructure funding for roads, Olympic venues and rent relief in a cost-of-living focused budget. Here is what it means for you.
News
Don't miss out on the headlines from News. Followed categories will be added to My News.
Regional Queensland will receive millions in infrastructure funding for roads, Olympic venues and rent relief in a cost-of-living focused budget.
Treasurer Jim Chalmers brought down his second budget on Tuesday night, announcing the first budget surplus in 15 years amid worsening global economic conditions.
Among the funding set aside for the regions include $173.7m for road projects across the state alongside a massive $1bn for Olympic sporting infrastructure outside of Brisbane in Toowoomba and Cairns.
Meanwhile, $176m has been allocated across forward estimates for the Cairns Marine Precinct and a new Central Queensland University campus in the northern city and a further $13m across forward estimates for paddock to reef monitoring in northern Queensland.
A total of $14.3m will be spent over the next three years to reduce emissions in the state’s energy sector, while $5m allocated over the next two years on a feasibility study for the North Bowen Pipeline.
However in a major boost for regional centres struggling to cope with development being outpaced by population growth, Dr Chalmers announced a new housing policy which offered massive tax breaks to build rentable housing.
The policy will include a plan to cut the managed investment trust withholding tax from 30 to 15 per cent for developers to pitch and create build-to-rent projects.
Dr Chalmers is also set to increase the maximum rates of Commonwealth Rent Assistance by 15 per cent, giving an extra $31 a fortnight to renters in the private market.
Dr Chalmers said the latter was the largest increase in more than 30 years.
“For too long, secure, affordable housing has been out of reach for too many Australians,” he said. “But we know an essential part of the solution to pressures in the housing market is more homes for Australians.
“We want more Australians to know the security of a roof over their head – which is why we’re also working with the states and territories to improve planning, build more houses and deliver a better deal for renters.”
Dr Chalmers also cited the $10bn Housing Australia Future Fund which was previously announced in the government’s inaugural budget in October 2022.
However, in a win for tens of thousands of small business operators across the state, Dr Chalmers announced a surprise continuation of the $20,000 instant asset write-off which was expected to end on June 30.
Dr Chalmers announced a $4bn budget surplus, the first since Wayne Swan’s inaugural effort in 2008.
However, the Treasurer flagged this would likely be a one-off, with forward estimates showing a $13.9bn deficit in 2023-24 and $36.5bn the following year before “lower deficits across the forward years compared to recent budgets”
Dr Chalmers cited Labor’s “firm commitment to responsibility and restraint” for the surprise surplus but blamed tough global economic headwinds for the declining fiscal position in coming years.
“The global economy is slowing due to persistent inflation, higher interest rates and financial sector strains,” he said.
“Outside of the pandemic and the Global Financial Crisis, the next two years are expected to be the weakest for global growth in over 2 decades … this will affect us here in Australia,” he said.
“Our economic growth is expected to slow from 3 ¼ per cent in 2022–23 to 1 ½ per cent the year after, before recovering to 2 ¼ per cent in the next.”
Gross debt will peak in 2025-26 at 35.6 per cent of gross national product (GDP) when it will top $1 trillion.
This, Dr Chalmers said, was $154bn less than anticipated in the March 2022 budget, the last to be delivered by the Coalition before the federal election.
Dr Chalmers used his speech to frame the budget as targeted spending on key projects which would not add to inflation
“In all our decisions, we seek to strike a considered, methodical balance,” he said.
“Between spending restraint to keep the pressure off inflation, while doing what we can to help people struggling to make ends meet.
“Making sure vital services like Medicare and the National Disability Insurance Scheme are secure, reliable and sustainable and dealing with immediate, near-term challenges – while investing in our long-term national success.”
Other key points of the budget which were announced in the lead-up include:
•A $14.6bn cost of living plan which will include $3bn in direct energy bill relief for households, with $500 deducted from charges for 5 million eligible households.
•$2.2bn to increase access to pharmaceutical products, allowing people with chronic conditions to get two-months’ worth of supply for 300 different medicines, saving them $180 annually.
•A $40 per fortnight increase for JobSeeker recipients and those on other support payments like Youth Allowance and Austudy.
•Extending the single parent payment so it will be available until their youngest child turns 14 rather than eight.
ROADS, RAIL PROJECTS COULD FACE BUDGET AXE
The federal government is set to conduct an independent review of hundreds of infrastructure projects across the country – which could result in long-promised roads and rail commitments being cut.
Tuesday’s federal budget revealed a vast majority of the 800 Infrastructure Investment Program projects, which were either yet to start construction or were not Labor election commitments, would be subject to an independent audit to determine their viability.
An Infrastructure Department spokeswoman was unable to confirm the projects in the $120 billion fund that would be subject to the review, instead telling NewsCorp that Infrastructure Minister Kirsty McBain would speak with her state and territory counterparts before confirming projects facing the independent audit.
Budget documents confirmed that, despite the review, a massive $55.4 billion in taxpayer funds had been allocated to the Infrastructure Investment Program.
The program is made up by black spot projects, the Bridges Renewal Program, Developing Northern Australia program, as well as the roads and rail investment schemes and the Roads to Recovery fund.
“The Government will continue to improve the sustainability of the Infrastructure Investment Program and focus on delivering nationally significant land transport infrastructure projects that support long-term productivity and economic growth,” The Treasurer said.
“In recent years, the Infrastructure Investment Program has drifted away from a focus on projects of national significance, and market capacity challenges and cost pressures have increased.
“An independent strategic review will ensure the Government’s $120 billion pipeline over ten years is fit for purpose and the Government’s investment is focused on projects which improve long-term productivity, supply chains and economic growth in our cities and regions.”
The budget confirmed the federal government would “work with states, territories and local governments to prioritise the delivery of projects currently under construction and election commitments”.
“The maintenance of supply chains is important for economic resilience and connectivity. The Government will provide a further $200.0 million for the development of major project business cases,” Dr Chalmers said in budget papers. “A further $13.5 million will be provided to improve aviation safety and fund critical upgrades to remote airstrips, to ensure continued access to essential health care, employment and educational opportunities for remote communities.”
GOLD COAST
Developers will be offered massive tax breaks by the federal government to build rentable housing in a move to take pressure off the Gold Coast’s housing crisis.
Federal Treasurer Jim Chalmers brought down his second budget on Tuesday night, announcing the first budget surplus in 15 years amid worsening global economic conditions.
But there was little else in funding for the Gold Coast, with neither the city, nor any of its key infrastructure projects mentioned during Dr Chalmers’ speech or in budget documents.
However the housing policy, a key plank of the budget, will have a significant impact on the Gold Coast’s severe housing shortage which has seen remaining land at a premium and driving up prices.
The policy will see cuts to the managed investment trust withholding tax from 30 to 15 per cent for developers to pitch and create build-to-rent projects. Meanwhile the policy will also see an increase in the maximum rates of Commonwealth Rent Assistance by 15 per cent, giving an extra $31 a fortnight to renters in the private market.
Dr Chalmers said the latter was the largest increase in more than 30 years.
“For too long, secure, affordable housing has been out of reach for too many Australians,” he said. “But we know an essential part of the solution to pressures in the housing market is more homes for Australians.
“We want more Australians to know the security of a roof over their head – which is why we’re also working with the states and territories to improve planning, build more houses and deliver a better deal for renters.”
Dr Chalmers also cited the $10 billion Housing Australia Future Fund which was announced in the government’s inaugural budget in October 2022.
New data released in March revealed Gold Coast renters had copped the highest increases in the state over the previous year.
Surfers Paradise was the worst-affected, with tenants there paying an average of $1475 a week while Paradise Point residents spend $1275 a week, a jump of 50 per cent on 2022.
The city’s rental vacancy levels fell to a historic low of 0.9 per cent.
The budget contained no funding for critical 2032 Olympic Games transport projects including Stage 4 of the light rail between Burleigh Heads and the border, or the heavy rail extension from Varsity Lakes to Gold Coast Airport or the Coomera Connector’s future stages.
However, Gold Coast Airport will receive a one off investment of $4 million under the Air Transport Program. Investments under the program is expected to ensure the aviation industry “operates within a clear and robust regulatory framework”, that international and domestic air services remain competitive and improves access to regional and remote areas.
And in a win for tens of thousands of small business operators across the city, Dr Chalmers announced a surprise continuation of the $20,000 instant asset write-off which was expected to end on June 30.
WIDE BAY
Flood recovery and housing relief are among the big ticket items for the Wide Bay Burnett region in this year’s budget, which includes a brief glimpse at progress on a major renewable hub.
The housing crisis gripping the Gympie, Maryborough and Bundaberg regions is getting a helping hand with a promise to build 1m new homes across Australia over a five-year period from 2024.
An extra $31 per fortnight for renters will likewise help ease the burden and accelerating deductions for build-to-rent housing developments.
The federal government is injecting another $4.8 million into disaster risk reduction in Queensland, which will be welcomed by Gympie and parts of thee Fraser Coast which are still recovering from the trio of disasters in January, February, and May 2022.
The controversial Borumba Dam gets a mention with an unidentified amount listed in the 2023-24 year.
The exact amount of the funding is listed as not for publication due to commercial sensitivities.
The budget documents do not mention major infrastructure projects like the long-awaited Tiaro Bypass, which has been listed as one of more than 100 projects in the Infrastructure Investment Program being reviewed by the government.
Updated IIP schedules will be finalised after the review.
The government is committing $8m across four years in the fight against modern slavery, which emerged as a problem in 2022 amid claims some farms across the Bundaberg region were engaging in the practice.
RAMSAR wetlands like those off the coast of Tin Can Bay are getting a helping hand thanks to a nationwide commitment of $50m across five years.
The government is committing another $7.7m for a multi-use conveyor belt at the Port of Bundaberg, adding to $7.5m the project received in 2022-23 as part of the Hinkler Regional Deal.
The region will also benefit from wider support for the Great Barrier Reef which totals $13m in the next three years under the Reef 2050 Plan.
TOWNSVILLE
Townsville’s Australian Institute of Marine Science is getting a significant boost on the back of a four-year, $163.4 million investment to support new jobs and upgrade critical infrastructure.
This will include more than $88 million to increase its workforce and more than $31 million for electrical infrastructure upgrades and refurbishment of unusable and unsafe lab and office facilities.
The investment is one of several packages for the north Queensland city included in the budget, sitting alongside further investment in the city and escalating the fight against a pest.
The battle against the Yellow Crazy Ants has been given a significant boost in the 2023-24 budget alongside other financial help for major drawcards like protection of the Great Barrier Reef and more support for James Cook University.
The government has delivered $8.2 million for the eradication of the pests this coming financial year, with another $6.8m promised in 2024-25 and 2026-26.
Funding continues for the Townsville City Deal, first struck in 2016 and, with $58 million in 2023-24 to continue the project which includes the rapid construction of a new concert hall and upgrades to the Port of Townsville Channel.
This follows from $25 million support in 2022-23, and a further $90m is promised in 2024-25, and a final $19.5 million is listed to be given in 2025-26.
The abolishment of the North Queensland Water Authority will continue, with its scrapping to save the federal government $9.5 million over four years.
The Authorities functions will be transferred across to the Department of Climate Change, Energy, the Environment, and Water.
Savings from this cut will be redirected to other government policies, the documents say.
JCU’s Australian General Practice Training Program is getting $4.2 million across the next two years; the program graduates about 150 medical students each year.
The region’s major tourist draw, the Great Barrier Reef, will benefit from the Reef 2050 Plan which will protect the area and secure jobs.
A 2021-announced strata-resilience pilot program which would subsidise the cost of cyclone risk mitigation works to improve the affordability of insurance access for strata title properties in the region has finally been given funding, with $28 million promised in 2023-24 and another $12 million the following year.
TOOWOOMBA
Regional sports grounds across the state are set to see a massive $935 million cash splash – in an effort to prepare for the 2032 Olympic Games.
Tuesday’s federal budget saw $935 million allocated under the Minor Venues Program to build or improve 16 sporting venues across regional Queensland over the next decade – including Toowoomba Sports Ground and Barlow Park in Cairns.
Infrastructure Minister Kirsty McBain said the Minor Venues Program would create “significant” and “lasting” long term benefits that will “bring people together”.
“The Government’s investment in Games venue infrastructure will generate significant legacy benefits including for regional Queensland communities,” The Minister said in response to the Olympic Games venue funding.
“These benefits include providing sustainable, modern facilities suitable for a range of sports and community use before and after the Games to meet the growing needs of Australians living in regional Queensland.”
The Minor Venues Program is part of a $3.4 billion government commitment to support 2032 Olympic venue infrastructure over the next ten years.
The funding also includes a capped investment of up to $2.5bn for the development of Brisbane Arena.
CAIRNS
The federal government has splashed the cash for marine services and a new university campus in Cairns.
The government has earmarked $176 million across forward estimates for the Cairns Marine Precinct and a new Central Queensland University campus in the city.
The government has pegged $30m over three years from 2025–26 to deliver a common user facility at the Cairns Marine Precinct.
Funding has also been earmarked for the Central Queensland University campus in the city’s central business district.
The federal government has also abolished the North Queensland Water Infrastructure Authority with its functions transferred to the Department of Climate Change, Energy, the Environment and Water.
The move will save the government $9.5m over four years from 2023-24.
The funding for the treatment of Papua New Guineans travelling through the Torres Strait treaty zone and access healthcare facilities in the Queensland health and hospitals network has been bolstered by $100,000, up to $5.4m in 2023-24 from $5.3m in 2022-23.
The government has allocated another $900,000 in the fight against mosquitoes in the Torres Strait for 2023-24, the same as this financial year.
GLADSTONE
A $2b investment in the Hydrogen Headstart program is a boon for Gladstone, traditionally reliant on coal-fired power and gas.
Mr Chalmers said the program would mean Gladstone could “make and export everything” from renewable energy to green steel.
“Seizing these kinds of industrial and economic opportunities will be the biggest driver and determinant of our future prosperity,” he said.
It was not clear, however, if the $15m promised during the election for the Boyne Tannum Aquatic Recreation Centre was in the budget.
In 2022, Federal Labor made an election commitment of $15m to help develop the centre.
The Gladstone Regional Council is the centre developer and is reliant on the federal funding commitment.
The council estimates the construction cost of the centre at $21m and the $15m would go towards the construction of a pool.
ROCKHAMPTON
The funding was not clear for the Rockhampton Ring Road, a critical infrastructure project for the central Queensland city.
The federal government’s funding commitment of $852m towards the ring road was reconfirmed in the 2022-23 October Budget and was unchanged from the 2022-23 March Budget.
Prior to the budget being handed down, Capricornia MP Michelle Landry said the community was “crying out” for critical infrastructure projects because travel times through Rockhampton were increasing.
WESTERN QUEENSLAND
First Nations residents in the state’s remote regional areas are getting boosts through a number of initiatives and programs aimed at closing the gap.
The government has pledged $145.3 million across the next four years to help address immediate safety concerns for First Nations women and children who are experiencing, or at risk of, domestic and sexual violence.
Another $32.8 million across two years is being given to the Clontarf Foundation to extend its program to support school engagement for at-risk First Nations young men.
First nations health is being given help with greater access to Covid-19 tests and vaccines is being provided with a $57.3m nationwide investment, and $238.5 million being spent across four years to improve cancer outcomes with better screening and prevention activities, research, and data collection.
SUNSHINE COAST
The $1.6 billion earmarked by consecutive federal governments for the Sunshine Coast heavy rail project has been retained in this budget.
However, the project that would create a rail line from Beerwah into the Maroochydore CBD falls under the review the Labor Government will conduct into its $120 billion infrastructure pipeline.
The $3.2 billion heavy rail line project needs federal and state government funding to become a reality.
Earlier this year, an indoor sports centre for the Kawana sports precinct was announced for the Sunshine Coast in the lead-up to the 2032 Brisbane Olympic and Paralympic Games.
The precinct will hold 11 courts and 6000 seats for basketball events as well as regional and national tournaments including for netball, volleyball, futsal, pickleball and badminton.
The government has allocated $3.4 billion for infrastructure investment to support the 2032 Games.
This includes $935 million for new and upgraded venue infrastructure across Queensland.
The budget did not, however, specify the projects earmarked for funding.
MACKAY
There was no funding allocated for the Queensland Hydro Pioneer-Burdekin scheme.
Queensland Hydro closed an expressions-of-interest drive on March 2 that called for consultants to develop a cost-estimate for the scheme.
The state government had previously estimated the project would cost $12 billion.
In January this year, Prime Minister Anthony Albanese confirmed his support of the scheme.
“I think the state government has outlined quite a visionary program and I look forward to having further discussions with the state government about how the federal government can support them,” he said at the time.
ANALYSIS – WHAT THE BUDGET MEANS FOR YOU
LABOR’s second budget brings home the bacon – but just for one year.
Federal Treasurer Jim Chalmers secured a major PR win by announcing a surprise surplus on Tuesday night.
It’s razor small – just over $4bn – but a surplus is a surplus and it will embolden the government in its charm offensive to rebrand itself as credible economic managers.
Labor lost the PR battle a quarter of a century ago in the Howard era by walking away from the Hawke-Keating economic record, allowing the Coalition to claim the narrative that Labor was spendthrift while the conservatives save, and the Rudd-Gillard era did it no favours either.
But with after epic pandemic spending in the Morrison years, Labor has used its first two budgets to recast the story anew.
However the surplus is only expected to last just this financial year, with deficits again going forward.
So what does the budget mean for you?
Dr Chalmers has tailored a budget which is relatively light on key infrastructure projects but heavy on policy recalibration – think tax breaks for developers to build rentable accommodation, cheaper medicine, increasing the JobSeeker payments for both young and old, the extension of the single parent payment and other cost-of-living measures.
These are squarely aimed at the hip-pocket of voters, many of who are struggling to make ends meet.
It’s not an election year budget but it’s certainly laying the early foundations for Labor’s 2025 campaign.
No wild spending on ideological favourites or pet projects to be seen.
Dr Chalmers highlights the tightrope walk the federal government is walking in terms of funding necessary projects while also restraining its spending to prevent greater inflationary pressure.
In essence, it’s cost of living meets cost of giving.
The forward estimates show funding for key regional infrastructure projects including Olympic Games venues outside of Brisbane.
What’s concerning, however, is the lack of funding for some of the key Olympic projects including the satellite athletes village on the Gold Coast, and critical transport infrastructure projects.
With the Games now nine years away and the cost of materials continuing to increase, the clock is ticking to get these projection the agenda and completed in time.
With a review of more than $120bn in infrastructure projects due in coming months, the future of projects across the state remain up in the air.
Hit and run: Police hunt driver in Pimpama e-scooter crash
A teenager has been taken to hospital after they were knocked from their e-scooter on the Gold Coast in an alleged hit and run.
20 years behind: Qld students in danger over bus seatbelt lapse
Queensland’s motoring body has slammed the state’s lack of action over a safety feature on school buses, saying it is almost 20 years behind other states, as terrified parents voice their concern.