Queensland State Budget 2021-22
The Queensland State Budget 2021-22 was delivered on Tuesday, 15 June 2021 by Treasurer Cameron Dick. The Budget papers highlight that the Queensland economy is rebounding faster than expected and the Government is now forecasting a small surplus in 2025.
The Treasurer announced, “Queensland’s economy is bigger than it was before the pandemic. On almost every indicator we have seen this year, Queensland is outperforming the rest of Australia.”
This Budget continues to focus on growth in jobs, services and infrastructure. As with the 2020-21 Budget handed down in December, there are a number of new spending initiatives but no new tax changes or tax concessions. Below is a summary of some of the key highlights:
- Growth is forecast to be 3.25% in 2020-21 and 2.75% over the forward estimates.
- Queensland has recovered all of the jobs lost during the Covid-19 crisis period and has the strongest employment growth across the country since March 2020. Employment in Queensland has rebounded to be 54,900 persons higher in April 2021 than the pre-pandemic level in March 2020.
- Unemployment forecast to reduce from 7% to 5% over the forward estimates.
- Reduction in net debt of $9.7 billion compared to the forecast in the 2020-21 Budget handed down in December.
- Infrastructure program spending of $14.7 billion in 2021-2022 with 61.2% provided for projects outside of Greater Brisbane.
Job creation & investing in skills
- $16.8 billion committed to education investment in 2021-2022.
- $3.34 billion to be invested in the Queensland Jobs Fund which will bring together key industry attraction and development programs and fund initiatives to strengthen supply chains, foster innovation, diversify regional economies while creating jobs and boosting income levels. Funding includes $1.5 billion for the Queensland Renewable Energy and Hydrogen Jobs Fund which expands on the previous $500 million Renewable Energy Fund and will enable investment aimed at achieving the 50% renewable energy target by 2030.
- $320 million over the next 4 years for the flagship Skilling Queenslanders for Work initiative. Up to 15,000 disadvantaged Queenslanders will benefit each year from targeted programs to equip jobseekers with the skills, qualifications and experience required to enter and stay in the workforce.
- Record $20.885 billion in operating funding and $1.35 billion in capital funding.
- Establishment of $2 billion Hospital Building Fund to assist with meeting growth pressures in the health system.
- Further funding to assist with delivery of government’s COVID-19 response.
Tourism, Regional and Rural Queensland
- Continuing from the 2020-2021 Budget delivered in December, majority of spending on tourism and in the regions is focused around building resilient businesses and communities as well as infrastructure projects to support job creation and retention.
- Establishment of a $1 billion Housing Investment Fund.
- Housing and Homelessness Action Plan 2021 – 2025 provides $1.9 billion over 4 years to increase the supply of social housing and upgrade the existing social housing property portfolio.
- Increased support for those impacted by domestic, family and sexual violence.
- Funding for youth justice reforms including additional frontline positions at youth detention centres, support for families of children on bail and expansion of the programs in place to reduce the risk of offending and breaching bail conditions.
If you have any questions, please contact your MBA advisor. We are here to help you achieve your goals and get you where you want to be.
Disclaimer: This information is general in nature and should not be relied on as advice. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs and seek professional advice before making any decisions based on this information.