All aboard the budget boost: Rail link to heart of Sunshine Coast

A rail line into the heart of the Sunshine Coast – stopping at a favourite family holiday destination – is a step closer, as the mid-year budget update reveals a $6 million investment to kickstart the plan.

A rail line into the heart of the Sunshine Coast and favourite family holiday destination is a step closer, as the mid-year budget update reveals a $6m investment to kickstart the plan.

The Morrison government is chipping in $3m for an investment planning study on extending a rail line from Beerwah to the Maroochydore CBD, with the State Government expected to match the funding.

It was part of the budget update which saw Treasurer Josh Frydenberg urge premiers to “not be spooked” by the Omicron variant of Covid-19, warning the bigger than predicted economic bounce-back was still at risk.

Treasurer Josh Frydenberg released the Mid-Year Economic and Fiscal Outlook (MYEFO) on Thursday. Picture: NCA NewsWire / Gary Ramage

But Opposition treasury spokesman Jim Chalmers criticised the update for ignoring growing issues around skills shortages, stagnant wages and job insecurity.

The mid-year economic and fiscal outlook revealed unemployment dropping to lows only seen twice since the 1970s, strong coal and gas exports, as well as that a multibillion-dollar election war chest had been stashed away.

But assumptions in the rosy outlook included that the Omicron variant does not “significantly alter current reopening plans” or see widespread health restrictions or lockdowns.

Funding for the Maroochydore rail study, one of the few new funding commitments in the papers, is intended to see the line built before the 2032 Brisbane Olympic Games.

Fairfax MP and the Prime Minister’s envoy on the Olympics Ted O’Brien said it would also provide the option for it to be converted into fast rail in future if desired.

“There’s still a long way to go, but there’s no time to waste and we must keep moving which is why this news is so welcomed,” he said.

The financial documents showed that $15.9bn had been stashed away over the next four years on projects where the government has made decisions but have yet to reveal what they are.

While this is often used to squirrel away election sweeteners to be announced in the new year, it is understood to also include commercial-in-confidence arrangements around Covid-19 vaccine deals and some national security measures.

The nation’s deficit is set to hit $99.2bn, $7.4bn better than predicted in the May budget.

Net debt will reach $673bn this financial year and keep climbing towards $914bn over four years.

Mr Frydenberg said he had a clear message to the state premiers – don’t overreact.

“Their actions in response to Omicron must be proportionate to the risk. They must show compassion. They must show common sense,” he said.

Opposition treasury spokesman Jim Chalmers says the budget update ignored key challenges in the economy. Picture: Caitlan Charles

“Premiers should not be spooked by the Omicron variant. We have a plan. It’s working.”

Mr Chalmers said the budget update did “absolutely nothing” for key challenges facing the economy.

“It completely ignores the issues in the economy around stagnant wages, and skill shortages and job insecurity,” he said.