The Queensland State Budget 2020-21 was delivered on Tuesday, 1 December 2020 by Treasurer Cameron Dick. Like other State Budgets, the Queensland State Budget is focused on the creation of new jobs, large infrastructure projects, construction and incentives for reskilling and apprenticeships – with borrowing to support this.
The Treasurer announced, “If there has ever been a time to borrow to build, to create jobs and to strengthen the Queensland economy, it is now.”
The Budget papers highlight that while COVID-19 delivered an unprecedented shock to the economy and a substantial impact on the State’s revenues, Queensland is rebounding from the impacts and recovering faster than other States.
Many of this year’s budget announcements incorporate previously announced funding and concessions aimed at supporting businesses through the COVID-19 pandemic. Included in the budget 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:
- Record 5.9% fall in domestic economic activity in Queensland in June quarter 2020 (NSW down 8.6% and Victoria down 8.5%). June quarter expected to be lowest point in COVID-19 economic cycle.
- Unemployment rate expected to have peaked at 7.9% in September quarter 2020.
- Total projected net debt is expected to reach $130 billion by 2024 (only 2/3rds of NSW debt over the same period).
- Infrastructure program spending of $56 billion over the next 4 years and spread across various sectors including health, education, transport (roads and rail), recreation (sport and entertainment), water and energy.
Job creation & investing in skills
- Investment into frontline services such as healthcare workers and teachers as well as an increase to police, fire and ambulance personnel.
- $1 billion over four years for school upgrades.
- $200 million invested in the skills of the future, with a suite of initiatives.
- Extension of free TAFE and apprenticeships for Queenslanders aged under 25 (previously available for those aged under 21).
- $74 million to fast-track tourism recovery and restore tourism jobs through a number of new initiatives.
- 25% of all Government spending to be awarded to SME businesses and moving towards a “Buy Queensland” approach.
- $500 million Backing Queensland Business Investment Fund to be managed by QIC will provide capital to relatively mature businesses seeking to expand or restructure operations.
- $265 million to commence delivery of seven new innovative Satellite Hospitals across South East Queensland.
- Additional funding to assist with delivery of government’s COVID-19 response plan.
Regional and rural Queensland
- Majority of spending in the regions is focused around infrastructure projects to support job creation and retention in the regions.
- A suite of programs to support Queensland’s manufacturing sector, including establishing an Immersive Technology Hub.
- $600 million of a $1 billion commitment allocated to make trains in Queensland again.
If you have any questions, please contact your local Bentleys office. We are here to help you achieve your goals, and get 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.