Townsville business leaders back state budget despite tax reform calls

Townsville’s business leaders say the latest state budget is on the right track for our region but there’s room for improvement. Read their feedback.

Townsville Chamber of Commerce chief executive Heidi Turner is looking forward to seeing the state government's budget deliver for North Queensland. Picture: Supplied.

Townsville’s business community says the state’s 2025-26 budget has struck the “right balance” between providing key services and backing businesses, but some rue the missed opportunity for tax reform.

The Townsville Chamber of Commerce welcomed the key measures in Treasurer David Janetzki’s first budget, delivered on Tuesday, noting its clear focus on core services, business productivity, and regional workforce challenges.

Chamber chief executive Heidi Turner said the budget has a “pragmatic balance” in prioritising health, education, roads and community safety, while offering targeted support to small businesses doing it tough.

“We’re pleased to see no new or increased taxes in this budget, and a clear commitment to improving productivity and workforce participation,” Ms Turner said.

“In particular, we welcome investment in safety and crime prevention – a key advocacy focus for the Chamber this year.”

Townsville Chamber of Commerce Heidi Turner has advocated for the removal of stamp duty on insurance – a tax on a tax. Picture: Supplied.

She was pleased to see the Regional Jobs Committees (RJC) continue for another two years, funding for Skilling Queenslanders for Work, a dedicated fund to help women return to the workforce, a $130m “Small Business First” action package, and a $1.6bn investment in electricity maintenance to put downward pressure on power bills.

The 50 per cent apprentice rebate extension for another 12 months was a plus, but concerns remained about businesses being penalised when apprentice wages tipped them over the payroll tax threshold.

Ms Turner welcomed the $1.4bn CopperString commitment, the $180m Sovereign Industry Development Fund, the $9bn for Bruce Highway upgrades, and was keen to see how NQ could leverage the Olympic and Paralympic Games spend.

“This is the largest infrastructure investment in our state’s history. Townsville wants to ensure we benefit from the transport and legacy infrastructure, not just sporting projects,” Ms Turner said.

The Chamber wanted more action towards addressing skills shortages, and repeated its call to end paying stamp duty on insurance.

Townsville Enterprise Limited CEO Claudia Brumme-Smith says it exciting times with the budget coming out Tuesday.

Townsville Enterprise chief executive Claudia Brumme-Smith said the budget was a strong vote of confidence during a “pivotal moment” for NQ, with over $2.6bn invested in our region, in addition to major highway upgrades and housing investment.

“The government has clearly listened to the needs of North Queenslanders, committing to long-term projects that will drive growth and jobs across the North,” Ms Brumme-Smith said.

She praised the commitment towards CopperString, the boost to tourism through the Destination 2045 Strategy, and the $2bn for the Residential Activation Fund to address housing stress and population growth.

“We’re on the cusp of an industrial and economic boom, but we can’t capitalise on that potential without homes for our workers and communities,” she said.

PVW Partners managing partner Carl Valentine. Picture: Supplied

PVW Partners managing partner Carl Valentine said the budget was a step in the right direction that should lead to a stronger state economy where businesses could grow.

“However, more can be done to remove abhorrent imposts and regulatory handbrakes on our businesses,” Mr Valentine said.

“Federally driven tax reform should be the catalyst for the reform of state and territory taxes, including payroll tax.”

TP Human Capital director Clayton Cook also lamented the budget’s lack of payroll tax changes, saying it could help businesses considerably, encourage more apprenticeships, recruitment, and expansions.

TP Human Capital director Clayton Cook. Picture: Josephine Carter.

He liked the budget’s focus on supporting jobs, skills, housing, its nearly 70 per cent of capital spent outside of greater Brisbane, and its continued support for the RJCs.

“Regional businesses don’t just need investment, we need confidence that money is actually landing in our communities,” Mr Cook said.

“As a small business ourselves, I was pleased to see a focus on reducing red tape and simplifying procurement, supporting smaller tenders.

Knight Frank Townsville senior partner Craig Stack. Picture: Supplied.

“We need real delivery, local engagement, and a strong focus on reducing the friction that holds regional businesses back, like housing shortages, workforce constraints, and overly complex government processes.”

Knight Frank Townsville senior partner Craig Stack said the budget’s infrastructure spending encouraged business confidence, while the Residential Activation Fund would motivate higher private sector spending, and create much needed housing supply – helping address one of the region’s most significant challenges.

Originally published as Townsville business leaders back state budget despite tax reform calls