Cost of living relief lightens Queensland budget update

Some Queenslanders will receive further cost-of-living relief in 2024 fuelled by coal royalties that have sparked marginal growth in the state's economy.

Treasurer Cameron Dick handed down his mid-year budget review on Wednesday, tipping the economy to grow by three per cent over the next two years.

A small net operating deficit of $138 million is forecast for 2023/24, a $2.044 billion improvement on the deficit projected in the budget.

Coal royalties have been the backbone of the state's post-pandemic economy, and are expected to boost revenue by $9.4 billion over the first five years.

Since being adopted in July 2022, additional royalty revenue from coal has pumped around $5.8 billion into the economy.

Pieces of coal.
Coal royalties are expected to boost revenue by $9.4 billion over their first five years.

Mr Dick said the budget is effectively in balance on the back of a $4.3 billion surplus in 2021/22 and a record $13.9 billion surplus in 2022/23.

"The strength of our balance sheet enables us to deliver more cost of living relief for Queenslanders," Mr Dick told reporters on Wednesday.

"The No.1 priority of the government is to make sure we deliver as much cost of living relief to Queensland families and businesses as we can afford."

The government outlined $8.224 billion in concessions in June's budget and will unveil further measures to ease cost-of-living pressures on Queenslanders.

Registration fees for motor vehicles will be frozen for one year from July 1, 2024 and public transport fees are also set for a 12-month freeze from January 1.

For example, a commuter from the Gold Coast to Brisbane will save more than $210 a year on public transport, Mr Dick said.

Free kindergarten for families will begin in 2024 and funding for the First Home Owners grant has been doubled to $30,000 until June 2025.

The government has also provided $1.483 billion in electricity rebates to Queenslanders, with most households receiving $550 towards their energy bills and vulnerable households receiving $700.

"These changes are not as big as the electricity bill rate rebates, but every dollar you don't have to spend at a time like this is very important," Mr Dick said.

The mid-year budget review shows the government's four-year big build infrastructure program has increased from $89 billion to $96 billion.

Mr Dick said 80 per cent of that increase is due to renewable energy projects and partnering with the federal government on increased social and affordable housing spending.

General government sector net debt is estimated at $14.676 billion by June 30, 2024, which is $1.514 billion lower than previously projected in the 2023/24 budget in June.

General government sector revenue is estimated to be $3.7 billion higher than previous budget estimations

Queensland household spending growth is expected to slow in 2023/24 due to increased lending rates and cost-of-living pressures.

Queensland budget update paper.
The Queensland government has announced further cost of living measures in its budget update.

But household consumption growth is expected to bounce back slightly in 2024/25 due to a forecasted ease on inflationary pressures.

Queensland coal exports are forecast to grow five per cent in 2023/24 and a further 8.25 per cent in 2024/25.

Total key state revenues in 2023/24 are estimated to be $4.248 billion lower than in 2022/23.

However, it is $4.336 billion higher than estimated at the time of the 2023/24 Queensland budget, due to revisions to coal and petrol royalties and higher-than-expected global metallurgical coal and oil prices.

License this article

What is AAPNews?

For the first time, Australian Associated Press is delivering news straight to the consumer.

No ads. No spin. News straight-up.

Not only do you get to enjoy high-quality news delivered straight to your desktop or device, you do so in the knowledge you are supporting media diversity in Australia.

AAP Is Australia’s only independent newswire service, free from political and commercial influence, producing fact-based public interest journalism across a range of topics including politics, courts, sport, finance and entertainment.

What is AAPNews?
The Morning Wire

Wake up to AAPNews’ morning news bulletin delivered straight to your inbox or mobile device, bringing you up to speed with all that has happened overnight at home and abroad, as well as setting you up what the day has in store.

AAPNews Morning Wire
AAPNews Breaking News
Breaking News

Be the first to know when major breaking news happens.

Notifications will be sent to your device whenever a big story breaks, ensuring you are never in the dark when the talking points happen.

Focused Content

Enjoy the best of AAP’s specialised Topics in Focus. AAP has reporters dedicated to bringing you hard news and feature content across a range of specialised topics including Environment, Agriculture, Future Economies, Arts and Refugee Issues.

AAPNews Focussed Content
Subscription Plans

Choose the plan that best fits your needs. AAPNews offers two basic subscriptions, all billed monthly.

Once you sign up, you will have seven days to test out the service before being billed.

AAPNews Full Access Plan
Full Access
  • Enjoy all that AAPNews has to offer
  • Access to breaking news notifications and bulletins
  • Includes access to all AAPNews’ specialised topics
Join Now
AAPNews Student Access Plan
Student Access
  • Gain access via a verified student email account
  • Enjoy all the benefits of the ‘Full Access’ plan at a reduced rate
  • Subscription renews each month
Join Now
AAPNews Annual Access Plan
Annual Access
  • All the benefits of the 'Full Access' subscription at a discounted rate
  • Subscription automatically renews after 12 months
Join Now

AAPNews also offers enterprise deals for businesses so you can provide an AAPNews account for your team, organisation or customers. Click here to contact AAP to sign-up your business today.

Download the app
Download AAPNews on the App StoreDownload AAPNews on the Google Play Store