Queensland on Olympic debt mission in ‘responsible’ budget
A cost-of-living cash splash will be reeled in as the state government looks at long-term budget repair before hosting an Olympics.
The government vows to hand down a “responsible” budget for 2025/26 on Tuesday.
Treasurer David Janetzki is looking to chip away at Queensland’s projected total debt of almost $220 billion ahead of the 2032 Brisbane Games.
“It will lay the foundations for a fresh start and it will be delivering for Queensland,” he said.
The first LNP budget since 2014, when Campbell Newman was in power, will look very different to the former Labor government’s last budget, which featured a big cost-of-living cash splash.
Queenslanders were treated to $1000 energy rebates and a 20 per cent reduction in car registration costs, along with frozen government fees.
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Labor initially said total debt would blow out to $172 billion by 2027/28, including projected deficits for two financial years before returning to surplus in 2026/27.
However, in Janetzki’s mid-year budget update in January, debt was forecast to exceed $217 billion by 2027/28.
That led to credit rating agency S&P Global revising its outlook for Queensland from stable to negative, potentially threatening its AA+ rating.
If the rating is downgraded, it will increase the cost of borrowing and make it harder for the government to secure debt funding.
Queensland’s revenue has also been hit hard by a $2.4 billion reduction of GST revenue in 2025/26 and falling coal royalties.
Neither Janetzki nor Premier David Crisafulli would be swayed on whether the debt figure would change in Tuesday’s budget, despite a pre-election promise that the red line would improve under the LNP.
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But ahead of the release of the budget on Tuesday, it was revealed that the government will help first home buyers secure a home worth up to $1 million under what’s being billed as the most generous shared equity scheme in the country.
Singles earning up to $150,000 and households with two adults earning up to $225,000 will be eligible to take part in the $165 million Boost to Buy program, according to the Courier Mail.
Under the program, the government will take up to 30 per cent equity in new builds and 25 per cent in existing homes, up to a value of $1 million.
Crisafulli would not confirm if there would be a return to surplus in the government’s first term.
The premier ruled out any cuts to the public service, promising it would be properly resourced.
The government wants to deliver structural support to services in four key areas: health, housing, crime and cost of living.
It has already announced almost $150 million to better equip the police force with tasers, tyre deflation devices and body-worn cameras.
Families with kids aged five to 17 can claim a $200 voucher to help with sports expenses, costing the government $62.5 million a year for four years.
“It will deliver targeted, responsible cost-of-living support for those who need it most,” Janetzki said of the budget.
