Sunny one day, broke the next

It should be no surprise to anyone that the Queensland Labor government followed the economy-wrecking example of Victoria and has left a legacy of deficit and debt for the new LNP government to clean up.

The state’s mid-year economic review, released on Thursday, shows that total state debt will more than double to $217.83bn by mid-2028. Debt per capita is tracking to be the worst in the country, the debt-to-revenue ratio this financial year is estimated to be 129.2 per cent, growing to 155 per cent in 2025-26, and forecasts are for consecutive deficits of $6.9bn in 2025-26, and $9.2bn in both 2026-27 and 2027-28.

This is higher than what S&P Global Ratings said in September would be the peak when confirming Queensland’s AA+ rating. It is a shameful legacy for Queensland Labor, which, like Western Australia, has the benefit of enjoying the resources and consequent royalty streams from the commodities that underpin the nation’s export riches.

But Labor squandered the state’s good fortune on too many public servants and too many ill-conceived, mismanaged major construction projects.

The new government says it is resigned to the fact that the state could soon suffer the public and fiscal humiliation of a ratings downgrade. Treasurer David Janetzki said the former government had failed to allocate funding to some of its signature policy initiatives, including 50c public transport fares.

Costs of the state’s four biggest infrastructure programs had blown out by $22.6bn to $129.9bn.

Now in opposition, state Labor has nothing to offer to the debate. With the former premier and treasurer still in key positions on the opposition benches they have no credibility on financial issues.

But Queensland Premier David Crisafulli must show more determination to rise to the challenge.

It was a mistake to promise during the election campaign to mirror Labor’s desperate, last-minute spending programs, just as it is a mistake now for Mr Janetzki to rule out cuts to the public service, asset sales or increased taxes to help fix the budget.

The Treasurer might be right that Queenslanders deserve more frontline services in nursing, teaching, policing and firefighting. But taxpayers also deserve savings elsewhere to put things on to a sustainable footing.

New governments only get one best chance to take decisive action. Mr Crisafulli is in danger of squandering that opportunity.