‘Just call me Robin Hood’: Qld Treasurer defends broken taxes promises

Queensland Treasurer Cameron Dick has broken an election promise to impose no new or increased taxes by slugging big business with three taxes to fund his third state budget.

Big business will be slugged with new taxes including a levy to help fix the state’s fractured mental health system in a move that’s been slammed as a broken election promise.

Mining companies, online bookmakers and businesses with annual wages bills exceeding $10m will all pump more money into the state’s coffers as part of new or increased taxes in coming years.

But while handing down his third budget on Tuesday, Treasurer Cameron Dick insisted he was not breaking his pledge for no new or increased taxes, including on businesses, which he made during the 2020 election campaign.

“The people of our state knew what I was saying when I said that,” he said.

“We were very clear.

“We were very upfront.”

Queensland Treasurer Cameron Dick. Picture: NCA NewsWire / Dan Peled

The budget, which placed health front and centre with a “record” $23.6bn, was slammed by key stakeholders for falling short amid rising cost of living pressures and ongoing pressures on the state’s health system.

There was no new funding for social housing construction despite more than 50,000 people needing a home while health stakeholders said the budget didn’t go far enough to ease pressure on strained hospitals.

Total debt over the forward estimates is expected to reach $128.5bn however a $1.9bn surplus is now expected for 2021-22.

This is compared to the $1.4bn deficit that was predicted at the budget update last December and has largely been attributed to a temporary surge in coal and oil prices and increased stamp duty revenue.

But as “these factors unwind”, a deficit of about $1bn is expected during 2022-23 before climbing to a slim $153 million surplus in 2024-25.

While still increasing over the forwards, net debt is now expected to be less, predicted to hit $39.2bn in 2025-26 compared to the $42.5bn that was predicted for 2024-25 at last year’s budget. Unemployment is expected to remain steady at about 4 per cent over the forwards.

Opposition treasury spokesman David Janetzki took aim at Mr Dick, claiming he had broken his election promise.

“The Treasurer promised 26 times not to increase or introduce any new taxes – today he has broken that promise and his integrity lies in tatters and it will be the Queensland people that pay,” he said.

Queensland Premier Annastacia Palaszczuk and Treasurer Cameron Dick. Picture: NCA NewsWire / Dan Peled

From July 1, three new coal royalty tiers will be added to the existing structure, with companies to pay 20 per cent of the dollar when prices exceed $175 per tonne.

They will have to pay 30 per cent when prices climb beyond $225 per tonne and 40 per cent when they exceed $300. The Treasurer said it was only fair that miners paid more following high coal prices as Premier Annastacia Palaszczuk said she believed Queenslanders “are on our side” when it came to the increase.

“Each of these new tiers applies only on the margin, so at a coal price of $302 per tonne, the 40 per cent rate would only apply to the last $2,” Mr Dick said.

While conceding companies wouldn’t like the changes, the Treasurer said there were no changes to the existing tiers.

The hike is expected to pump an extra $1.2bn into the state’s coffers over the next four years and comes off the back of $7.3bn in royalties revenue during 2021-22.

Meanwhile a 0.25 per cent mental health levy will be imposed on businesses with an annual wages bill of more than $10 million and will come into effect from January 1 next year.

“Businesses with annual wages over $100m will pay an additional 0.5 per cent levy,” the Treasurer said.

This is expected to impact about one per cent of all Queensland businesses – or about 5000 – and is expected to generate $1.5bn over the forwards.

And a 5 per cent levy will be slapped on the existing betting tax in an effort to “level the playing field” between Tabcorp and online bookmakers.

At least 80 per cent of that revenue will be funnelled directly back into the racing industry, a significant jump from the previous cap of 35 per cent.

A record $23.6bn for the health service was also revealed on Tuesday following urgent calls from the sector over consecutive months that something needed to be done to ease pressure on hospitals.

Of this funding, $9.8bn will be spent on the “biggest hospital building program” with 2200 new beds to be delivered over six years.

New hospitals will also be built in Coomera, Toowoomba and Bundaberg and are expected to be completed during the second half of 2027.

“This budget delivers the greatest ever uplift in budgeted health capital in Queensland history,” Mr Dick said.

The Premier said the funding injection was vital.

“I said that we would fix the issue and today we announced the biggest infrastructure program that our state has ever seen,” she said.

But Mr Janetzki said “for the last seven years the Palaszczuk government has destroyed the health system in Queensland and now they are asking for another seven years to fix it”.

The Government will also provide payroll tax relief to more than 12,000 small and medium-sized businesses by increasing the number of businesses who are eligible.

“This will be achieved by increasing the payroll tax deductions to businesses with annual Australian taxable wages between $1.3 million and $10.4 million,” the Treasurer said.

“This means a business with $6.5 million of taxable wages will see over $26,000 extra each year in its bank account.”