Qld Budget 2022: Five things you should know, five things lacking
The State Government has heralded record spending on health and mental health, but here’s where the Budget falls short.
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The Queensland Government unveiled its 2022 Budget today, with huge expenditure on health and a new initiative to support mental health.
But the Government is already facing pressure over an alleged broken promise on new taxes for businesses, while spending on social housing and cost of living will be scrutinised for failing to adequately support those in need.
FIVE THINGS YOU SHOULD KNOW
SURPLUS
The Budget will return to surplus after falling into deficit over the last few years when the Government was forced to splash cash during the Covid-19 pandemic.
The Budget surplus of $1.915 billion this financial year is an improvement of $5.4 billion compared to the $3.485 billion deficit forecast in the previous Budget – this compares to a projected deficit of $1.4 billion at the Budget Update in December
But this is expected to fall to a deficit of $1.03 billion in 2022-23 and $1.08 billion in 2023-24, before returning to a surplus of $137 million in 2024-25.
Other notable economic indicators include revenue being estimated to be $72.74 billion in 2022-23, up from $63.66 in the previous financial year. Revenue has jumped significantly due to stamp duty and royalties after soaring commodity prices and housing market activity.
Meanwhile, the unemployment rate is expected to fall to 4 per cent for 2022-23 before edging slightly higher to 4.25 per cent in 2023-24
HEALTH
The health budget is increasing to a record $23.6 billion in 2022-23, up from the $22.2 billion last year.
This will include $9.8 billion to expand hospital capacity, which is expected to create 2200 new beds from 2024-28. The capacity expansion program will help fund three new hospitals in Bundaberg, Toowoomba and Coomera.
Queensland Health’s operating budget grows $1.16 billion, or 5.6 per cent, more than last year.
MINING ROYALTIES
New coal royalties after a 10-year freeze will deliver an additional $1.2 billion in royalties over the forward estimates.
Mr Dick said the income generated from royalties will be spent on hospitals and other major infrastructure in regional Queensland.
“The new regime is forecast to deliver an additional $1.2 billion in royalties over the forward
estimates, 30 per cent less than was forecast through the changes made by the former LNP
government in 2012, he said.
“All of that $1.2 billion, and more, will be going into regional Queensland.”
MENTAL HEALTH LEVY
Mr Dick revealed a mental health levy, which will be a new 0.25 per cent paid by businesses with annual taxable wages of more than $10 million from January 1, while businesses with wages over $100 million will pay an additional 0.5 per cent.
The Treasurer says this is the top 1 per cent of Queensland businesses, with the levy to generate $425 million each year.
This will allow the government to spend $1.6 billion over five years to support plans that focus on mental health, addiction, substance abuse and suicide.
BROKEN PROMISE?
The new announcements to increase royalties paid by miners as well as the mental health levy paid by about 5500 of Queensland’s top businesses are both admirable initiatives.
But Mr Dick faced intense scrutiny from reporters on Tuesday for comments made by him in the 2020 state election that a Labor government would not lift taxes for businesses.
On Tuesday, he defended the introduction of a royalty, declaring “few industries in the world have enjoyed such a long period without change”.
“This will mean that, for a decade, multinational coal companies have benefited from royalty
arrangements that have been frozen by successive Queensland governments,” he said.
“But from 1 July, the 10-year freeze comes to an end.
“It is time for new arrangements to be implemented.
FIVE THINGS MISSING OR LACKING
SOCIAL HOUSING
The government has announced no new money to build social housing beyond what was announced in last year’s Budget.
Meanwhile, expenditure on social housing construction will fall from $502 million to $441 million.
This comes as advocates plead for support to ease the housing crisis in Queensland, where more than 50,000 people languish on the waiting list to be housed.
NEW INFRASTRUCTURE
The State Budget lacks any major new infrastructure projects as Queensland grapples soaring population growth, with the billions included to be spent on existing transport and rail infrastructure projects
Queensland Treasurer Cameron Dick has allocated $59.1 billion over four years for an infrastructure investment program he says will improve the state’s production capacity and create jobs.
This year $15.5 billion will be spent to upgrade schools, hospitals and roads in a program Mr Dick said would support 48,000 jobs.
At the centre of the investment is a $7.30 billion investment in transport infrastructure, which includes $1.29 billion to continue Cross River Rail, $270m to start stage three of the Gold Coast Light Rail and the rail network through the Logan and Gold Coast Faster Rail project.
However, there is little money for new transport infrastructure projects, with the Government’s mooted $3.5 billion rail revolution program to be rolled out over four years.
MENTAL HEALTH
Mental health expenditure, to be funded by a new levy revealed on Tuesday, is a significant announcement but falls short of what advocates and key stakeholders say is needed.
They have previously said the Government needs to spend an additional $750 million a year to support the under-resourced issue, while the Government’s new announcement will be $1.6 billion over five years.
BED CAPACITY
The State Government has again paraded record expenditure on health to create more beds but the $23.6 billion announced to the sector still falls short of what experts say is needed right now.
“Our Government commits $9.8 billion for a funding program to expand the capacity of
Queensland’s health system, the biggest hospital building program in the history of
Queensland,” the Treasurer said in his speech to Parliament.
This will deliver 2200 additional overnight hospital beds over six years with less than 300 to come online immediately, but the sector experts say it needs 1500 beds right now.
COST OF LIVING
Queenslanders hoping for some relief as inflation soars and cost of living pressures weigh on family finances won’t find solace in this Budget.
The Government previously announced a $175 rebate on electricity bills but there was no other major announcement to alleviate household finances.
There was no new initiative to help those grappling with the housing affordability crisis and the stamp duty concessions flagged in other states remains a mute topic in Queensland.
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