A cost-of-living cash splash is set to be reeled in as a state government looks at long-term budget repair before hosting an Olympics.
Queensland’s Liberal National government is vowing to hand down a “responsible” budget on Tuesday after winning the 2024 election, ending Labor’s nine-year reign.
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, is set to look very different from the former Labor government’s 2024 budget, which featured a significant 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.
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 Mr Janetzki’s mid-year budget update in January, debt expectations rose to exceed $217 billion by 2027/28.
It led to S&P Global revising its outlook for Queensland from stable to negative but maintaining its AA+ rating.
If the rating is downgraded, it increases the cost of borrowing, making it harder for the government to fund services.
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 Mr Janetzki nor Premier David Crisafulli would be swayed on whether the debt figure would change in Tuesday’s budget, despite a pre-election promise the red line would improve under the LNP.
Mr 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,” Mr Janetzki said of the budget.
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