STATE BUDGET: Five-minute guide

The Queensland government has handed down its State Budget, with a $1.9 billion surplus announced, another record spend on health and a new system to recoup more cash from miners. Here’s our five-minute guide:

The Queensland government handed down its State Budget on Tuesday, with another record spend on health which it hopes will alleviate chronic hospital issues.

The budget’s $23.6 billion allocated to the sector includes $9.8 billion for a funding program to build new hospitals in Bundaberg, Toowoomba and Coomera.

Treasurer Cameron Dick also unveiled a new mental health levy which will see the top 1 per cent of Queensland businesses pay up to 0.75 per cent to fund a $425 million investment to fight the scourge.

A $6.4 billion increase in mining revenue has prompted the government to unfreeze royalties and introduce a new tiered system to recoup more cash from miners.

However, despite strong opposition from the powerful Queensland Resources Council, Mr Dick insists the increase is “fair and reasonable”.

State of the Budget:

• Budget surplus of $1.915 billion this financial year is an improvement of $5.4 billion when compared to the $3.485 billion deficit forecast in the previous budget. But this is expected to fall to a deficit of $1.03 billion in 2022/23 and $1.08 billion in 2023/24, before returning to a surplus of $137 million in 2024/25.

• Net debt of $11.4 billion estimated for 2021/22 was significantly lower than the $24.76 billion budgeted for, but this is expected to increase to $19.77 billion in 2022/23.

• Revenue estimated to be $72.74 billion in 2022/23, up from $63.66 billion in the previous financial year. Revenue has jumped significantly due to stamp duty and royalties after soaring commodity prices and housing activity.

• New coal royalties after a 10-year freeze and will deliver an additional $1.2 billion in royalties over the forward estimates.

• The unemployment rate is expected to fall to 4 per cent for 2022/23 before edging slightly higher to 4.25 per cent in 2023/24.

• Queensland’s gross state product grew by 3 per cent in 2021/22, and is expected to pull back slightly to 2.75 per cent for both 2022/23 and 2023/24.

Queensland Treasurer Cameron Dick. Picture: NCA NewsWire / Dan Peled

Health:

• A record $23.6 billion will be spent on health in 2022/23, up from the $22.2 billion last year

• $9.8 billion for expanding capacity of beds at hospitals, which is expected to create 2200 in new overnight beds from 2024 to 2028. The capacity expansion program will help fund three new hospitals in Bundaberg, Toowoomba and Coomera.

• Queensland Health’s operating budget grows $1.16 billion, or 5.6 per cent, more than last year.

• $1.6 billion over five years to support plans that focus on mental health, addiction, substance abuse and suicide.

• This will be supported by a mental health levy, which will be a new 0.25 per cent paid by businesses with annual taxable wages of more than $10 million from January 1, while businesses with wages over $100 million will pay an additional 0.5 per cent. Treasurer says this is the top 1 per cent of Queensland businesses.

• Mental health levy will generate $425 million each year.

• $1 billion over seven years for a Building Rural and Remote Healthcare Program to improve health infrastructure across the state.

Infrastructure

• $59.1 billion in capital programs over the next four years, with $15.5 billion to be spent this year.

• Queensland Rail will receive $358 million to replace, renew and upgrade rail infrastructure, rolling stock and facilities – with $142 million spent on the southeast Queensland network $168 million for the regional network.

• The budget also includes investment in previously announced projects on the Bruce Highway including the $1 billion Cooroy to Curra upgrade, $662.5 million to widen the highway to six lanes between Caboolture-Bribie Island Rd and Steve Irwin Way and $500 million for upgrades between Mackay and Proserpine and Gladstone and Rockhampton.

Olympics

• Brisbane’s Olympic Games organising committee will receive $60 million over four years to start its critical work of planning for the 2032 event.

• $59.3 million – including $26.58 million in the 2022-23 financial year – has been allocated to staff, supplies and services, including for the newly formed Olympic Infrastructure and Precincts Office to progress planning, design and delivery of critical infrastructure

• The government will also invest $4.7 million per year ongoing for the Brisbane 2032 Taskforce to lead the Queensland Government’s Olympic activities.

Public service

• $2 billion to cover the wages of another 8000 public service workers.

• In the wake of the government essentially axing its public service hiring freeze, employee expenses are set to surge by 7.7 per cent in 2022-23 – reaching a massive $30.07 billion.

• The government is expected to hire another 8175 workers in the coming year – bringing the total size of the state’s public service to more than 250,000 full time equivalent (FTE) positions.

• About 6200 of these additional roles will be added to Queensland Health amid ongoing pressures in the health system, while about 1,100 extra workers will be hired by the Education Department.

• There will also be a big boost in Queensland Police Service employee numbers, with its workforce set to grow from 16,923 to 17,548 FTEs over the coming year.

Environment

• $262.5 million over the forward estimates to 10 years to better manage protected areas, including national parks and Great Barrier Reef.

• Almost $40 million to help protect threatened species, including koalas. This funding will boost koala numbers in South East Queensland and restore key habitats, the Treasurer said.

Natural disaster recovery

• $30 million available for councils to assist with clean-up of their regions.

• $721 million in extraordinary circumstances package jointly funded by the Queensland and Australian Governments under Disaster Recovery Funding Arrangements to address recovery needs for impacted communities.

• $741 million for Resilient Homes Fund also jointly funded by the Queensland and Australian Governments.

Social housing

• The government has announced no new money to build social housing beyond what was announced in last year’s budget.

• Meanwhile, expenditure on social housing construction will fall from $502 million to $441 million.

• This comes as advocates plead for support to ease the housing crisis in Queensland, where more than 50,000 people languish on the waiting list to be housed.

Education

• A record education and training budget of $19.6 billion.

• Five new primary schools to be built – Caboolture West, Caloundra South, Ripley Valley, Greater Flagstone in 2025, and Bars Scrub in 2026.

• $80.6 million over three years to support schools transitioning to a new resourcing model for students with disability.

• $15.5 million over 3 years to support Queensland state schools to embed respectful relationships education.

• $20 million over two years to improve school playground and tuckshop facilities in disadvantaged areas throughout Queensland.

• $13.3 million to expand the Share the Dignity in Queensland Schools initiative, which provides free period packs to all state schools, outdoor education centres and student residential facilities.

Energy

• The state’s publicly owned energy assets will pump more than $1bn back into Queensland government coffers over the next two years.

• Following previous estimates of $0, Queensland’s state-owned electricity generators will be funnelling $689m of dividends back to government coffers in 2022/23 and 2023/24 on top of the $389m electricity networks are pumping in.

Tourism

• $254.2 million over four years to support Stadiums Queensland’s operations and capital activities to operate and maintain the state’s portfolio of major sporting stadiums and high performance / community venues in the lead up to Brisbane 2032.

• $66.4 million of additional funding over four years to implement targeted initiatives for tourism recovery to help grow Queensland’s tourism industry and leverage benefits of the Brisbane 2032 Olympics.

• $18 million to be donated to the Binna Burra foundation to rebuild the iconic lodge.

• $2 million for improvements at Lamington National Park.

• Increased funding of $5.7 million in 2024-25 towards the delivery of Queensland’s first purposely designed eco-tourism train, the Wangetti Trail, in a national park including the 94-kilometre trail and 4 public campsites.

Originally published as STATE BUDGET: Five-minute guide