Queensland’s infrastructure investment will leave a lasting legacy says BDO

While recent State Budget announcements have gone a long way in supporting future growth across Queensland, an ongoing commitment to delivering infrastructure will be needed.

With Queensland’s population growing rapidly, the 2022-23 State Budget has focussed on infrastructure as an integral aspect of the recent announcement. Underpinned by recent arrivals from interstate, and significant future population growth expected in the order of a quarter of a million residents over the next four years, the Budget positions Queensland for growth to Brisbane 2032 and beyond.

The Budget has invested across a range of infrastructure initiatives to address housing pressures, boost urban and regional investment in emerging sectors such as renewable energy, as well as deliver security for disaster affected regions and invest in the future of liveability for Queensland communities.

Funding initiatives include the continuation of existing programs such as Works for Queensland and the Resources Community Infrastructure Fund provide a much-needed boost for housing and land supply challenges, with the allocation of $200 million for delivery of new communities across South East Queensland.

The Budget has also announced a 4-year infrastructure investment program of $59 billion to improve service delivery, sustain economic growth and ensure liveability and improved quality of life for residents. Record investment in transport infrastructure across road, rail, port, bus and cycling are transformational, and include the transformational Cross River Rail Project, the Coomera Connector, Gold coast Light Rail and the upgrade of the Pacific Motorway.

A $3.5 billion commitment to new rail projects has been dubbed Queensland’s “rail revolution”, which is expected to support more than 5,000 jobs across manufacturing and other skilled work.

BDO economist Ally Flint.

The Budget has also addressed issues with disaster-resilience, allocating significant support for flood-affected homeowners, and boosting the Disaster Recovery Funding Arrangements.

The Budget provides a considered approach to funding allocations to improve the future of Queensland communities in the long-term, however there are still economic challenges to be faced with cost-of-living pressures, rising inflation, a tight labour market and increasing cost pressures on businesses. While employment figures have remained steady in Queensland, real wages are in decline, and the State is facing energy supply issues, the impacts of an ongoing pandemic and climate-change induced weather events. While the Budget announcements have gone a long way in supporting future growth across Queensland, the ongoing commitment to delivering enabling infrastructure will need to remain.

Ally Flint is a partner in Project & Infrastructure Advisory at BDO in Brisbane and also the national lead of the BDO Economics Team.