Hawker Britton Occasional Papers and Media

Queensland 2006 Budget

6 June 2006

 

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The Queensland Budget was announced today. This Occasional Paper outlines some of the highlights including changes in the tax system and significant investment in infrastructure.

1. Budget at a Glance
  1. Growth of 4.25% for 2006-07
  2. An operating surplus of $245 million
  3. Queenslanders to pay an average of 15% less State tax than taxpayers in other states and territories in 2006-07
  4. Over $10 billion in infrastructure spending
2. Tax changes

The headline announcement in tax coming out of the Queensland Budget is a timetable for the abolition of nine taxes and duties. These changes include:

  1. From 1 January 2007, unquoted marketable securities duty and hire duty will be abolished
  2. From 1 July 2006, the tax free threshold for payroll tax will increase from $850 000 to $1 million
  3. The tax free threshold for individual land tax payers will increase form $450 000 to $500 000
3. Infrastructure Investment

The budget includes investment in infrastructure exceeding $10 billion for the next financial year. Some of the projects planned in key infrastructure portfolios are outlined below.

3.1 Health

Investment in the Health Action Plan will be increased to $9.7 billion in just over five years. This will include:

  1. $1.3 billion over four years for Queensland Health state enterprise bargaining agreement
  2. $7.7 million in 2006-07 to establish the Quality and Complaints Commission and the Consumer Health Council
  3. $12 million over four years and $18 million in capital funding over three years to boost forensic services
3.2 Energy

The proceeds of the sale of ENERGEX and Ergon Retail and Allgas will be invested in the Queensland Future Growth Fund to be used by Government Owned Corporations to invest in infrastructure, to research and develop Clean Coal Technology, and water infrastructure. Other developments in Energy are:

  1. Combined capital network expenditure of Ergon Energy and ENERGEX totaling $1.71 billion
  2. $359.8 million to continue the development of the Kogan Creek Power Station and coal mine
3.3 Water

The Government has already committed to two dams, one at Traveston on the Mary River and either Tilleys Bridge on the Logan River or Wyaralong on Teviot Brook. Further to the dams, the 2006-07 budget includes:

  1. $8 million to bring forward construction of pipelines connecting dams in SEQ
  2. $100 million for a recycled water pipeline in the western corridor of SEQ
  3. $270 million over two years to construct a 215km water pipeline from Gorge Weir to Moranbah to improve supplies to the coal region of the Bowen Basin
  4. $19.6 million over two years to construct a 46km extension to Eungella Water Pipeline
3.4 Transport

The Transport porfolio (including Queensland Rail and ports corporations) represent $4.044 billion in capital outlays in 2006-07, including:

  1. $859.9 million in port infrastructure
  2. $85 million to QR to maintain and upgrade track infrastructure on the coal network
  3. $274 million for additional coal rollingstock to support increased coal haulage requirements
4. Conclusion

This Hawker Britton Occasional Paper represents only a brief snapshot of the budget as a whole. For more detailed information visit www.budget.qld.gov.au or contact your Hawker Britton adviser.

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