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That’s where we’ll leave our live blog today. Thanks for joining us – and before you go, we’d love to hear your verdict.
We’ll be back tomorrow for another day of news, including another budget, this time from the Brisbane City Council. See you then.
CPA Australia has declared the Queensland budget “disappointing” for small business, saying the state government missed an opportunity to boost economic growth and productivity.
“The budget focused heavily on household finances, such as energy bills and vehicle registration costs, which is understandable and will be well-received by many,” said CPA Australia’s business investment and international lead, Gavan Ord.
“But, as these measures were being announced in recent days, Queensland business owners could be forgiven for feeling overlooked.
“Every Queenslander knows a small business owner – and knows the financial pressures they’ve been facing in recent times, especially those in construction, hospitality and other energy-intensive sectors.
“The $650 electricity bill rebate for small businesses, co-funded with the federal government, is better than nothing, but frankly it won’t make much of a dent in the annual bills of small businesses, especially those with high energy needs.”
The RACQ has welcomed the cost-of-living measures in the state budget but criticised the lack of a long-term public transport plan.
General manager of advocacy Joshua Cooney said the lack of transparency around the Gympie Road Bypass Tunnel project, which receives another $318 million in the budget, only added to their concerns.
“We see the government rightly investing in rail, particularly for the Gold Coast and Logan faster rail, and the direct Sunshine Coast rail line,” Cooney said.
“We need better public transport to give motorists genuine alternatives and enable that mode shift for Queensland to have any hope of easing congestion.
“But while rail is a winner, it’s disappointing that buses make up just 1.1 per cent of the transport infrastructure budget ($437 million).”
The state’s struggling live music industry will receive an additional $1.6 million through Arts Queensland as the ramifications of the closure of Fortitude Valley’s Zoo and Stranded venues are examined, while the Woodford Folk Festival will also receive an extra $1.6 million for artist assistance.
Separate funds for the new Night Time Economy Commissioner are also included within the Small Business department’s budget to develop a broader plan for arts industries.
“While this is not a magic bullet fix, its ability to be directly targeted to where it can do the most good means it is going to be a great support to our artists and venues when they need it most,” QMusic chief executive Kris Stewart said.
The need for a Night Time Economy Commissioner was raised this week by businesses speaking with Brisbane Times and highlighted again by Premier Steven Miles on Sunday.
The Property Council has welcomed the budget support for first home buyers but slammed changes that would increase costs to foreign buyers and companies who own real estate in Queensland.
Queensland executive director Jess Caire said foreign investors were “critical to building the large-scale apartment blocks needed to house renters”.
The point at which first home buyers pay stamp duty will rise to $700,000.Credit: Dan Peled
“Taxing these companies more will simply result in them investing elsewhere, taking their money and housing stock with them,” Caire said.
“If you think it is hard to find a home in Queensland, this decision just made it a whole lot harder.”
The budget papers show Treasury expects a growing proportion of its revenue to come from stamp duty and land tax.
Over the next two years, new bus services will be added to fast-growing suburbs of Ipswich and Logan, after comments from the mayors of both cities in the lead-up to the budget.
In Ipswich, this includes new services to growth areas of Redbank Plains, Collingwood Park, Augustine Heights and Bellbird Park, as well as Springfield, Deebing Heights and Karalee.
It also includes better connectivity for residents moving into the Ripley Valley priority development area and responds to a specific request from Ipswich mayor Teresa Harding for a new bus linking Springfield and Ipswich via Redbank Plains.
In Logan, new bus services will be provided over the next three years to residential areas including Logan Reserve, Bahrs Scrub and Park Ridge East, while buses to the suburb of Berrinba are promised for the first time.
The 587 bus service will now link to rail services in Loganlea, responding to ongoing population growth in Yarrabilba.
The Real Estate Institute of Queensland welcomed the lifting of the stamp duty tax-free threshold for first home buyers, describing it as long overdue, but said it would have limited impact in Brisbane.
“While a $700,000 threshold is a significant improvement and will be appropriate for many parts of Queensland, it will have a limited impact in areas like Brisbane and the Gold Coast,” REIQ CEO Antonia Mercorella said.
“Therefore, we’d like to see recognition of how large and diverse Queensland’s housing markets are with a bespoke approach that ties the threshold to median sales prices to ensure first home buyers can take advantage of it in all corners of our state.”
Ratings agency Moody’s has kept Queensland’s credit rating unchanged but questioned the economic growth forecasts set out in the state budget.
In a statement, Moody’s noted the Miles government was forecasting stronger economic growth, rising from 2.3 per cent in 2023 to 3.0 per cent in 2024 and 2025, on the basis that global supply constraints are removed and Queensland exports rise.
However, that was higher than Moody’s forecasts for Australia’s overall economic growth in the period, and comes amid subdued household spending due to cost of living concerns.
“We consider underlying global inflation pressures and an uncertain monetary policy outlook as posing downside risks to the state’s growth outlook,” the statement said.
Treasurer Cameron Dick, who today repeated his call for the Reserve Bank to cut official interest rates, said he had not consulted the commonwealth on any inflationary impact from the budget.
Another agency, S&P Global, also held steady, but warned “waning fiscal discipline, revenue headwinds, and a growing infrastructure pipeline are eroding the buffer for our rating”.
As Brisbane Times revealed last night, the budget includes $318 million to further investigate the proposed Gympie Road Bypass Tunnel from Kedron to Carseldine.
Tolling giant Transurban has expressed interest in adding such a tunnel to its Brisbane network and the government believes construction could start as early as 2027.
Whoever wins the election will make the final decision, having to decide not only whether the estimated $7 billion construction cost is worth it but what motorists should pay across all tollways.
The budget papers reveal the government, through its Queensland Investment Corporation, will “investigate opportunities to optimise the commercial value of tolling rights on existing SEQ toll roads following the conclusion of existing concessional arrangements”.
That could see the government strike a new deal with Transurban to vary the tolls and how they are calculated.
This budget is the last one Treasurer Cameron Dick will hand down before the state election in October, but he insists it is “not a referendum” on Labor’s record since seizing government in 2015.
Former premier Annastacia Palaszczuk resigned in December, handing the reins to Steven Miles.
Treasurer Cameron Dick and Premier Steven Miles arrive at the budget lockup.Credit: Matt Dennien
“The election on the 26th of October is a fight about the future of Queensland,” Dick told journalists in the budget lock-up earlier today.
“It’s not a referendum on the last nine years, it’s about two competing visions for our state.”
Original URL: https://www.smh.com.au/link/follow-20170101-p5jks4