Treasurer David Janetzki claims this Budget will deliver the largest ongoing cost-of-living relief package in the State's history, and says the Crisafulli Government will deliver this alongside a return to surplus in 2030, thanks in part to a coal royalty and a stamp duty windfall.

The cost-of-living policies include a $50 increase to the Back to School Boost, and a commitment to make 50-cent public transport fares permanent, while savings of $500 million will come from fewer public sector executives, reduced consultancy spending and lower office rents.

Treasurer Janetzki blamed not just global conflict for the economic uncertainty facing the State, but also Commonwealth policy decisions:

"The foundations were laid last year, and this Budget strengthens them, despite the economic headwinds at home and abroad. We could have been distracted by events in Canberra and the Middle East, but we weren't. We remained mindful of the impacts".

The Budget papers describe Federal Budget uncertainty as a "risk to investment", and that it "risks damaging business confidence".

The real test will be whether the return to surplus is enough to protect Queensland's AA+ credit rating, which S&P Global has already warned is at risk.

Economic Outlook

The 2026-27 Queensland State Budget delivers a deficit of $8.9 billion this financial year, however, this declines over the forward estimates with a slim surplus of $619 million forecast in 2029-30.

Total debt is set to continue to rise, from $162.7 billion in 2026-27 to $216.5 billion in 2029-30. Meanwhile, Gross State Product is forecast to grow modestly at 1.75% this year, before picking up to 2% and then 2.25% over the forward estimates.

The State’s unemployment rate is expected to remain stable at 4.75% over the forward estimates, while inflation will decline from 3.75% this financial year to a stable 2.5% in the coming years.

Despite coal royalties being $675 million less this year compared to last year, over the forward estimates they are forecast to increase to $1.5 billion over the forward estimates. Stamp duty revenue has also been upgraded by $4.2 billion over the forwards.

The Budget papers take the unusual step of describing Commonwealth policy as a risk to the State’s economic outlook.

It notes the “uncertainty regarding the taxation changes announced in the 2026-27 Federal Budget pose a risk to investment, including in the property sector. Additionally, the uncertainty related to the Federal Budget risks damaging business confidence, especially in small and family business”.

Major Announcements

Cost of living

• $9.3 billion cost-of-living relief package.
• The Back to School Boost voucher for primary school families will increase by $50 to $150, to help cover the cost of schoolbooks and excursions.
• Vulnerable households will receive an indexed $399 electricity rebate.
• Bulk water charges in south-east Queensland will be frozen for two years, saving households an estimated $130 over that period.

Health

• $18.5 billion over five years for the Hospital Rescue Plan, including $4 billion in 2026-27 to deliver more than 2,600 additional beds across the State.
• $2.206 billion for new hospitals in Bundaberg, Coomera and Toowoomba, major hospital expansions and upgraded emergency departments.
• $394.4 million for mental health services over four years.

Education and Training

• $700 million over five years for 22 new schools, including new schools at Ripley Valley, Greater Flagstone, Townsville and Wynnum-Manly.

Energy and Mining

• $1.6 billion Electricity Maintenance Guarantee is projected to drop typical household power bills by 7 per cent to 10 per cent next year.
• $100 million in funding this financial year for the Queensland Critical Minerals Fund.
• $46.1 million of funding to build critical minerals value chains and bring major projects online sooner.

Infrastructure and Transport

• $119.2 billion over four years for critical infrastructure across the State.
• $460 million for Stage One of The Wave, a new passenger rail line from Beerwah to Birtinya on the Sunshine Coast.
• $545 million over six years for water security, including upgrades to North Pine and Lake Macdonald Dams.

Housing

• $100 million in extra funding for social and community housing with $5.7 billion now committed over the forward estimates.
• $62.5 million to extend of the $30,000 First Home Owner Grant for four years.

Crime and Safety

• $200 million to implement recommendations from the Child Safety Commission of Inquiry and establish the Queensland Protection Commission.
• $90 million over five years to deliver new crime prevention schools across Queensland.
• $23 million in the next financial year on recruiting police.

Olympics

• $417 million for Games venues, including Brisbane's Victoria Park stadium, as part of a $7.1 billion state-Commonwealth funding envelope.
• $163.3 million over four years for Stadiums Queensland to maintain venues ahead of the Games.

Reactions

Leader of the Opposition, Steven Miles MP

“David Crisafulli promised to deliver generational infrastructure, on time and on budget. Instead, they have cut programs and delayed major builds. The LNP’s budget is costing Queensland more, while giving you less.”

Master Builders Queensland Deputy CEO, Michael Hopkins

“The State Budget’s focus on boosting building and construction productivity promises what industry has been calling for – and now it’s about turning that commitment into real reform.”

Association of Mining and Exploration Companies CEO, Warren Pearce

“The AMEC welcomes several important measures in this Budget, including continued investment in essential regional infrastructure, abandoned mine re-commercialisation, future fuels, critical minerals and support for mineral explorers.”

Australian Medical Association Queensland President, Associate Professor Erica Gannon

“We needed the health budget to grow by more than 9 per cent just to keep pace with increased population, demand and CPI. While we always welcome all health investment, Queenslanders are struggling to get health care now, especially in our regional areas.”

‍