What can we expect for cost-of-living in Qld’s state budget for 2024/2025

Steven Miles is set to deliver his first state budget since he took charge as Queensland Premier as he attempts to convince the state to give Labor another term. Here is the budget explained

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Cost-of-living will be at the centre of Steven Miles’s first budget as premier as he attempts to convince Queenslanders to give Labor another term.

The centrepiece of tomorrow’s cash-splash, cost-of-living focused budget will be a major reset of the thresholds for stamp duty relief for first homeowners.

Other measures include slashing vehicle registrations, vastly cheaper public transport, more funding for the embattled Bruce Highway and more ambulance officers.

Here’s what we know so far:

50c fares

One of two major cost of living announcements, the state government will spend $150m to make all public transport journeys just 50c.

Premier Steven Miles at the Mango Hill Train Station with 50c. Pic Annette Dew

It will come into effect on buses, trains, light rail and CityCats from August 5.

Airtrain tickets will also be halved from August 5 at a cost of up to $10m to the government. Ticket prices will reduce from $21.90 to $10.95.

Car rego

Vehicle registration costs will be slashed by 20 per cent for 5.7 million car owners for the next 12 months.

The second major cost of living announcement will cost the budget $435m and result in the bill for a private four-cylinder vehicle fall by about $85.

Deficit

The cash handouts will hit the budget’s bottom line as initial hopes of two surpluses in 2024-25 and 2025-26 are dashed.

In 2024-25 the deficit will hit $3bn before recovering to less than $1bn in 2025-26.

Total debt

Queensland’s debt will swell to a whopping $188bn in four years amid dwindling coal royalties and economic headwinds.

Treasury forecasts in April revealed government borrowings are set to double to $128bn between now and 2027-28, as net debt quintuples to $73bn.

Net debt will hit $73bn by 2027-28, five times higher than the $14.6bn it is set to be by mid-2024.

Total debt – which includes government owned corporations – will rise to $188bn by 2027-28, up from $109.8bn in 2023-24.

Stamp duty

First homeowners are some of the big winners in this year’s state budget.

Threshold for the first homeowner concession on transfer duty will rise from $500,000 to $700,000 as property prices soar.

The concession will then diminish up to $800,000 under a move the treasurer says will support some 10,000 buyers each year.

Tax hike

To help pay for the lost stamp duty revenue, the state will hike the surcharge foreign investors pay to 3 per cent for land tax and to 8 per cent for the transfer duty, in line with NSW and Victoria.

In Queensland, unlike NSW, any companies that are more than 50 per cent foreign-owned are hit with the tax, regardless of whether they are domiciled here.

Big Build

New projects and cost blowouts means the state will spend $107m on infrastructure over the next four years – $18bn more than anticipated one year ago.

About $2.1bn of the increase is due to price increases on existing projects.

New QAS staff

Queensland Ambulance Service will get $130m to fund 268 new positions – with 188 of those to be in place by the end of the year.

QAS is the nation’s busiest and this investment comes as ramping, due to clogged hospitals, hits unprecedented highs.

In May it was revealed 45 per cent of patients waited more than half an hour to be admitted to emergency departments.

FairPlay

For one year only FairPlay vouchers – to help families cover the cost of children's sport – will rise in value from $150 to $200.

The number of vouchers will also be increased from 50,000 to up to 200,000.

Bruce Hwy

The embattled Bruce Highway is also getting a funding commitment.. Picture: DTMR

The state’s annual Bruce Highway funding commitment will rise to $250m each year from 2027-28.

It will develop a fatigue management strategy and attempt to find technical solutions to warn motorists of flooding.

Renewables push

Tuesday’s budget will include $26bn for renewable energy and jobs plan over four years.

It’s higher than the $19bn allocated in last year’s budget and covers existing or new projects, not blowouts – according to the energy minister.

Sector splash

Education will get $20.9bn and the Homes for Queenslanders plan will get $2.8bn in the budget – both a “record” according to the government.

Of course, most spends can be considered record due to inflation.