13 Jun Infrastructure spend in QLD State Budget
From UDIA (Qld)
Deputy Premier Jackie Trad has handed down her first budget as Treasurer boasting of an operating surplus of $1.512 billion, $1 billion more than forecast in the December 2017 Mid-Year Fiscal and Economic Review.
Higher commodity prices, including the price of coal, have delivered the boost which the government says will be directed at paying down debt and infrastructure spending.
A total of $45 billion will be spent on capital works across the state over 4 years, including $40 million for a new Growth Area and Regional Infrastructure Investment Fund.
The program would focus on areas that are experiencing or responding to rapid growth.
Institute CEO Kirsty Chessher-Brown said the budget had its share of winners and losers, but she was pleased to see the new Growth Area and Regional Infrastructure Investment Fund go ahead.
“The Institute’s Research Foundation has put a sharp focus on the experiences of both members and the communities in rapid growth areas,” Kirsty said.
“The accelerated delivery of new infrastructure in these areas will help.” she said.
However, despite its benefit to both industry and young homebuyers alike, the boost to the First Home Owners Grant will expire on 30 June 2018.
The Queensland Government will also generate an additional $71 million as a result of the increase in land tax (0.5% increase on $10 million plus land holdings).
Look out for our region-specific budget breakdown in your inbox tomorrow.
Other items relevant to the development industry include:
• $45.8 billion capital works program over 4 years up from $42.75 billion last year ($11.58 billion in 2018-19 up from $10.17 billion in 2017-18)
• Additional $70 million to the Building Our Regions Infrastructure Fund (total $445 million over 6 years)
• Additional $94.6 million over 5 years to grow tourism experiences, capacity, incoming air routes and cruise ships
• $900 million on M1 upgrades and planning between Varsity Lakes and Tugan, and Eight Miles Plains and Daisy Hill
• $733 million on Cross River Rail in 2018-19
• $160 million for Sunshine Coast rail
• $534.3 million in 2018-19 on the Toowoomba Second Range Crossing
• $812.9 million ($200 million in 2018-19) to increase the Bruce Highway from four to six lanes from Caloundra Road to Sunshine Motorway
• $442.7 million in 2018-19 to new and upgraded social dwellings
• Additional $30 million in 2020-21 for round 4 of the Transport Infrastructure Development Scheme (TIDS) for local governments
• $14.1 million over 4 years for an independent body to resolve Councillor complaints etc
• $100 million to support recycling
• $4 million over 2 years for a Statewide Land Cover and Trees Study
• $277 million in 2018-19 toward water portfolio capital purchases.
Additional Revenue will be raised from:
• $71 million in 2018-19 from extra 0.5 % land tax on $10 million plus land holdings
• Additional Foreign Acquirers Duty (AFAD) increase from 3-7%
• $70/tonne waste levy (providing $400 million per year in revenue)
The First Home Owners Grant will be reduced from $20,000 to $15,000.
Key economic highlights
• Queensland achieved a 2.5% increase in Gross State Product in 2016-17, forecast to rise 3% in 2018-19 and 2.75% per year to 2021-22
• Unemployment rate 6.2% in 2016-17 dropping to 6% in 2019-20 (down from previous forecast)
• Population grew by 1.5% in 2016-17 expected to be 1.75% of following years (up from previous projections)
• Inflation 1.7% in 2016-17 expected to rise to 2.5%.
Want to know more?
If you have any questions relating to the content of the budget, please contact UDIA Qld Manager of Policy, Martin Zaltron on (07) 3229 1589.