Queensland to reap billions more after coal royalty hike, debt balloons under Cameron Dick

Queensland’s total government debt will balloon to almost $150bn in four years, and Treasurer Cameron Dick will snatch more than $9bn in royalties from coal giants this year.

Queensland’s total government debt will balloon to almost $150bn in four years, and Treasurer Cameron Dick will snatch more than $9bn in royalties from coal giants this year.

Delivering the mid-year budget review on Wednesday morning, Mr Dick said despite the borrowing blowout Queensland was in a “prime position to continue to grow”.

The state’s projected total debt for 2026-27 soared by more than $2bn in the six months since the June budget, from $147.02bn to $149.14bn.

On the government’s preferred measure of net debt, which excludes publicly owned companies, borrowings increased from $46.93bn to $47.34bn since June.

Mr Dick blamed the debt surge on “a range of activities” including increasing the state’s infrastructure program from $89bn to $96bn, of which 80 per cent is going to new projects.

“There are some cost escalations, but that’s to be expected when you see what’s happened with construction,” he said.

“We’ve invested heavily in renewable projects, in fact, the most comprehensive energy and jobs program in the country that beats New South Wales and Victoria by absolute country mile.”

Mr Dick – who is due to be installed as Queensland’s new deputy premier on Friday after a union and factional deal, following Annastacia Palaszczuk’s shock resignation – said $7bn of ­equity had been injected into government-owned corporations.

He said “however you cut it up” Queensland’s debt burden was lower than New South Wales and Victoria.

Queensland’s controversial coal royalty regime is expected to pump $9.2bn into government coffers by the end of this financial year, an extra $3.8bn than what was projected in the budget.

The three-tier coal royalty scheme, which includes the highest taxing rates in the world, funnelled $15bn into government coffers last financial year and delivered Mr Dick the biggest state budget surplus in history.

Extra revenue has been used to bankroll $550 energy ­rebates for every household, a new hospital in Moranbah and the CopperString electricity trans­mission line.

Liberal National Party leader David Crisafulli has committed to retaining the royalty regime until mid-2027, but not guaranteed it would continue past forward estimates.

The state’s coal exports rose by 1 per cent last year and are forecast to grow 5 per cent in 2023–24 and a whopping 8.25 per cent in 2024–25.

Queensland’s unemployment rate averaged 3.7 per cent last financial year, the lowest level since 2008.

After producing a record $13.93bn surplus last year, Queensland will slip back into a $138m deficit this year. The operating deficit is considerably lower than the $2.18bn predicted in the June budget.