Introduction                                                  

The Budget delivers policies and programs announced during the election process.

Economic Statistics                                      

Deficit:
Estimated 2020-21 Budget deficit of $8.633 billion, which is projected to go down to $1.389 billion by 2023-24

Total debt:
$129.7 b by 2023-24
General government sector net debt – excluding borrowings by government-owned corporations – $50.7bn in 2023-24, with interest payments reaching nearly $2bn in that financial year.

GDP:
The Queensland economy is forecast to return to marginal growth in 2020-21 (up one-quarter of one per cent) lower than the pre-COVID forecast of 2.75 per cent in 2020-21. Gross state product growth is forecast to significantly improve next financial year in 2021-22 when it is expected to reach 3.5 per cent

Unemployment rate:
The unemployment rate is forecast to be 7.5 per cent for 2020-21, before reducing to 7 per cent in 2021-22 and is forecast to improve steadily to be 6.5 per cent by June 2024

Public Service Expenses:
Frontline job increases will engender employee expenses to rise 3.2 per cent to $26.47bn, an increase of $810m to the public service wages

Revenue:
Revenue estimated to be $56.24 billion in 2020-21 – down from $59.82 billion in 2018-19.

State Taxation revenue:
Taxation revenue will decline from $14.3b in 2019-20 to $14.3b in 2020-21

Vehicle transfer duty in 2019-20 returned $533m and projected to increase by 2.8% to $548m in 2020-21.  The low 2019-20 result aligns with the fall in new car sales.  The previous financial year the duty raised $555m

Motor vehicle registration in 2018-19 returned $1,910m and is projected to increase to $1,948 in 2020-21.  Motor Vehicle Registration contributes 13.6% of State Taxation categories

Payroll tax in 2019-20 raised $4,211 m and projected to fall to $3,896 in 2020-21 (decline of 7.5%)

Royalties:
Royalties in 2019-20 raised $4,686 m and estimated to fall $2,631 m or by 45.2 per cent in 2020-21

Waste disposal levy:
The levy is paid by landfill operators on wastes disposed to landfill. The levy commenced at $75 per tonne for general waste and is regulated to increase by $5 per tonne per annum for the first three years. The first annual increase of $5 per tonne commences on 1 January 2021. Seventy per cent of proceeds from the waste levy will be used for resource recovery and other programs that reduce the impact of waste and protect the environment and local communities. Revenue from the waste disposal levy totalled $295 million in 2019-20. Revenue is forecast to grow by around 3.4% in 2020-21, and 9.4% in 2021-22.

Capital Works Program:

$14.8 billion capital program for 2020-21, with 58 per cent to be spent outside of Greater Brisbane estimated to directly support around 46,000 jobs across the state

Business:

$500m Backing Queensland Business Investment Fund

The $500 million Backing Queensland Business Investment Fund will target investments in businesses that:

• are based in Queensland and will create Queensland-based jobs
• have a proven product and defined market opportunity but require significant capital to aggressively build scale or grow market share
• are relatively mature, well beyond proof-of-concept and are profitable or approaching profitability
• are seeking capital to expand or restructure operations, enter new markets or finance significant acquisition
• have well-established and reputable owners who are committed to growing the business from and in Queensland.

The fund will be managed between Queensland Treasury and QIC.

To increase the skills and capabilities of small businesses, $30m will be invested to focus on priority industry sectors, market development and mentoring.

Small Business:

A target of 25 per cent of all government purchases to be from Queensland small and medium size businesses from July 1 which will be extended to 30 per cent by June 2022.

Big Plans for Small Business strategy will support private investment.  This includes: An initial $100 million Business Investment Fund from the $500 million Backing Queensland Business Investment Fund to invest in small to medium sized businesses that have significant growth potential and will create Queensland based jobs.

$30 million of investment to increase skills and capability including: Small business grants focusing on priority industry sectors; Grants to assist regional exporters to develop new markets; The development of a Business Ready Website; Continuing Small Business Month and the Mentoring for Growth programs; A study to link government procurement of new fibre networks with increased access for small businesses to high speed broadband in the regions; A Summertime Taskforce to support businesses to be more COVID-safe and move outdoors;

$10 million of investment to make the Small Business Commissioner permanent, and to reinvigorate the Small Business Advisory Council.

The strategy includes $25 million in small business grants with a focus on regions as well as young Queenslanders, women, social enterprises, culturally and linguistically diverse people and Aboriginal and Torres Strait Islanders.

Training:

Free TAFE and free apprenticeships will be extended to all Queenslanders under 25.  It is a $21 million initiative to create free training opportunities for more young Queenslanders in priority areas including: • health services • hospitality • engineering • aged and disability support and • early childhood education

A further $200 million will be invested in the skills of the future, with a suite of initiatives, including: • $32.4 million over two years for the TAFE Priority Skills Fund; • $25 million over two years for Pre-Apprenticeship Support; • $8 million over four years for a Digital Professional Workforce Plan; • $8 million over two years for the Social Enterprise Jobs Fund; • $5 million over two years for the First Nations Training Strategy; and • $5 million in 2020-21 for the Workforce Transition Support Program.

Delivering the Job Trainer Fund in partnership with the Australian Government to prioritise no or low fee training places for job seekers, school leavers and young people to them into jobs

Targeting critical skill needs and new skills for existing jobs, emerging opportunities brought about by technology advance.

Extending the Regional Jobs Committee to bring industry groups, training providers, local and major employers to help plan local training investment so it matches local skills needs.

Innovation:

Emphasis on growing the innovation economy

Transport:

Continued implementation of The Future is Electric: Queensland’s Electric Vehicle Strategy, including delivery of the Zero Net Emissions Roadmap that will outline how the Department of Transport and Main Roads will lead the transition of Queensland’s transport sector to a low carbon economy

Specialising in delivering technically difficult and hard to scope projects and providing end to end management of transport solutions through integrated business streams including civil construction and maintenance, structures, electrical, Intelligent Transport Systems and line marking

Energy:

Continuing to regulate and provide strategic oversight of Queensland’s electricity and gas supply industries, and biobased petrol and diesel mandates

Continuing to maintain the system for fuel price reporting to help motorists shop around and save at the bowser