Coronavirus QLD: How the pandemic will hit state budget

Treasurer Jackie Trad has forecast ‘significant’ drops in revenue due to COVID-19, saying Queensland’s bottom line will take a major hit going into the next budget.

TREASURER Jackie Trad has applauded the mining and agricultural sectors for propping up the Queensland economy during the coronavirus crisis, but warns the state’s bottom line will take a hit.

Asked today how the budget will fare in the longer term, the Treasurer said mining and agriculture were the standouts.

Jackie Trad says GST revenue will see a significant drop. Picture: Annette Dew

“They are keeping us fed and there is revenue coming in the door,” she said.

“But we do anticipate significant drops in GST revenue from the Commonwealth.

“We know that people are unlikely to be buying or selling houses so there will be a drop in stamp duty transfers, so there will be significant reductions in revenue.”

Ms Trad said she expected Queensland would increase its borrowings to pay for some of the measures the Government has introduced to combat the virus.

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It’s still not known when either a full or partial budget will be delivered.

“If it’s a full budget, that is what I am working towards, it does depend on how much our economy stabilises between now and then,” Ms Trad said.

“I think it is the case that until we do see a stabilisation in the markets, until we actually understand how much our economy is going to wake up and when it’s going to wake up it’s going to be very hard to forecast revenues.”

She said there were some estimates that Queensland’s unemployment rate could hit 12 per cent.