No more handouts: What to expect in Queensland budget

The era of sugar-hit, multi-billion-dollar cost of living handouts will be over when Queensland’s LNP Government hands down its first budget this month. Vote in our poll.

Queensland Deputy Premier Jarrod Bleijie, Premier David Crisafulli and Treasurer David Janetzki. Picture: Lyndon Mechielsen

• Editor’s view: Visionary or careless?

The era of sugar-hit multibillion-dollar cost-of-living handouts will be over when Treasurer David Janetzki hands down a budget focused on financial repair.

No new widespread cost-of-living relief is expected to feature in the LNP’s first budget on June 24.

Mr Janetzki will instead deliver carefully targeted relief to Queenslanders still struggling, without inflicting damage on an under pressure state budget, it is understood.

Treasurer David Janetzki will deliver the budget on June 24. Picture: Steve Pohlner

The change comes as the Reserve Bank of Australia cuts interest rates and returns inflation to within the target band.

It is a major change from Labor’s election-eve budget 12 months ago which included $11.2bn in cost of living handouts and subsidies – including $3bn to cut power bills by $1000 and $435m to slash vehicle registration by 20 per cent.

IN TODAY’S EDITORIAL WE OBSERVE THAT THE GOVERNMENT’S SPENDING ON HIGH-RISK MEGA PROJECTS IS EITHER VISIONARY OR INCREDIBLY CARELESS. READ NOW AND JOIN THE DISCUSSION

It is also in contrast to the further $9.1bn in cost of living handouts and promises Labor took to the October 26 election – which included $1.4bn for free school lunches and the establishment of state-owned GP clinics, petrol stations and an energy retailer.

Instead, Mr Janetzki said the LNP government would focus on lowering debt.

“It’s a serious challenge, but the 25/26 budget will begin the task of laying the foundations for budget repair,” he said.

“This will be a budget that honours our commitments.

“Debt will be lower than what it would have been under Labor who were on track to deliver the worst per-capita debt burden of any state in the nation.”

AMP chief economist Shane Oliver said Mr Janetzki should end significant cost of living relief and use savings to improve the budget.

“It would make no sense for the Queensland Government now to continue it because the election is now three years away,” he said.

“The best thing the Queensland Government could do now is not continue with cost of living relief and put the savings towards the bottom line and paying down debt.”

Mr Oliver said Queensland’s balance sheet was better than many other states but he warned high spending should be avoided.

“You’re providing this relief but it comes at a cost to the budget and it runs the risk a ratings agency might look unkindly at it,” he said.

“The initial cost of living relief was seen as okay but as it’s gone on... it becomes part of the problem because you’re providing the relief that allows people to keep spending, adding to inflation.”

Mr Janetzki will walk away from a pre-election pledge to keep debt below $171bn forecast in Labor’s June budget.

The treasurer in January said the government would now – after the extent of Labor’s “deception” was revealed – keep debt below $218bn in 2027-2028.

Deputy Premier and Infrastructure Minister Jarrod Bleijie said the June 24 statement would be a record infrastructure budget, with cash allocated to delivering a pipeline of projects for the 2032 Olympic and Paralympic Games.

Mr Bleijie used parliament to attack Labor’s lack of progress on Olympic infrastructure delivery while in government and sensationally labelled Opposition Leader Steven Miles the Donald Trump of Queensland Parliament.

The sledge referred to state election night when Mr Miles was late to accept defeat and did not congratulate Mr Crisafulli.

Mr Trump famously refused to concede following the 2020 election defeat to Joe Biden, falsely claiming it had been stolen.

Originally published as No more handouts: What to expect in Queensland budget