Queensland Government Budget 2021-22
The 2021-22 Budget creates new records for investment in health and education. It continues the strong pipeline of capital works across the State.
BUDGET IN FOCUS
•At the centrepiece of this budget are four new funds to support a Queensland that is bigger and fairer and backs new jobs:
- $1 Billion Housing Investment Fund with returns to drive new supply for current and future housing needs
- $300 Million Path to Treaty Fund with returns to support Path to Treaty actions
- $2 Billion Hydrogen and Energy Fund to increase investment by government-owned corporations in commercial renewable energy and hydrogen projects, and support infrastructure with the private sector
- $500 million Carbon Reduction Fund, with returns to support the Land Restoration Fund to leverage private finance and investment and support financially sustainable carbon markets
Queensland is booming. People are flocking to join the state, jobs are growing, new industries are starting and Government isbuilding extra capacity.
Budget Day in Brisbane started with dark rain clouds that soon turned into bright sunshine. So too are the economic fortunes of Queensland looking brighter in 2021. The State faced down the storm clouds of COVID-19 in early 2020 and today it converted a health response and sound financial balance sheet management into stronger economic growth and new jobs.
Last year Government stepped up where the private sector couldn’t –holding the show together during the worst of the pandemic. This year, the Government sets out an economic and social future for the state that is bigger, stronger, better andfairer than before the COVID-19 pandemic.
The macro recovery in Queensland has been better faster and stronger than expected. Queensland leads the nation for recoveredjobs, employment growth and net interstate migration.
The Government has made the deliberate choice to take that growing economy and invest it into backing businesses, supporting future industries, training Queenslanders for the skills they’ll need and building a Queensland with more capacity.
The Budget delivers a new housing fund, the largest health and education budgets, massive infrastructure spending and new funds for hydrogen, domestic manufacturing and future industries -all while charting towards an operating surplus in 2024-25.
The Palaszczuk Government has shown how to balance domestic fiscal responsibility, the complex new global headwinds of COVID in 2021 and find the room to invest in its people and industries.
GOVERNMENT DEBT PLAN IN ACTION
Debt is lower than forecasted, well below NSW and Victoria levels and the balance sheet is being used to invest in new industry and social funds.
The Queensland Future Fund –Debt Retirement Fund is due to be funded with contributions totalling $7.7 billion by 30 June 2021.
By retaining around $1.8 billion from the transfer of the Titles Registry the Government is able to support the new long-term government priorities in housing, treaty and carbon reduction.
Queensland’s interest expense is forecast to be around 2.6 per cent of revenue in 2021–22, well below the peak of 4.7 per cent in 2013–14. General Government Sector Net Debt is forecast to reach $39 Billion in 2023-24 and $42.5 Billion in 2024-25, both well below projections in the 2020-21 Budget.
Ratings agencies in October 2020 and April 2021 have reaffirmed Queensland’s strong credit rating driven by sound fiscal management, a diverse economy and credible debt reduction plan.
See the PDF for the full Hawker Britton budget in focus report.