Dear [FIRST NAME],
This afternoon, State Treasurer Cameron Dick delivered the Queensland Government’s budget for the 2023-24 financial year.
The ‘bill-buster budget’ aims to alleviate the cost-of-living pressures in the state while delivering on a series of infrastructure, energy and healthcare commitments.
The Government’s ninth consecutive budget comes during one of the most challenging economic climates the state – as well as the nation – has faced. Like the Federal budget, this year’s state budget is going to have to remain resilient in the face of global economic uncertainty, supply chain vulnerability and geopolitical instability.
Acknowledging this, the Treasurer forecasts:
- Economic growth of 3%, after 2% growth in 2022-23
- A deficit is expected in 2023–24, largely attributable to the government’s $1.6 billion cost-of-living package, before a return to surplus across 2024–25 to 2026–27.
- An unemployment rate of 4.25%, which is a 0.5% increase on the 3.75% mean rate in 2022-23
- Employment growth to reduce from 3.25% in 2022-23 to 1% next financial year
For most Queenslanders, the centrepiece of this monumental budget will relate to tackling the rising cost of living. For stakeholders in the infrastructure industry, all eyes will be on the ‘The Big Build’. IAQ supports the government in this ambition and looks forward to working with them on these initiatives as outlined below.
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We are delighted to see the government hand down a state-record-breaking $88.729 billion 4-year capital program. The capital program is forecasted to support close to 58,000 jobs in Queensland. It continues to build on and deliver the State Government’s $50 billion Infrastructure Guarantee and is investing in new and ongoing projects that are outlined below. IAQ believes these commitments are important for the state’s infrastructure industry, and Queensland’s economy more broadly.
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The Queensland Energy and Jobs Plan
In total, the 2023–24 Budget includes a capital investment of around $19 billion across the forward estimates to support the Queensland Energy and Jobs Plan. The Queensland Energy and Jobs Plan outlines the state’s pathway to transform the energy system over the next 10 to 15 years to deliver clean, reliable, and affordable power, creating a platform for strong economic growth and continued investment.
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Pumped Hydro
The government’s investment in the Queensland Energy and Jobs Plan includes up to 7 gigawatts of large-scale, long-duration pumped hydro across 2 regional sites, to be delivered by the newly established Queensland Hydro. These 2 projects, which will be central to Queensland’s energy system, will support around 4,000 construction jobs a year over a decade.
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- The $14.2 billion Borumba Pumped Hydro project, located west of Gympie, will deliver 2 gigawatts of 24-hour storage. That equates to stored renewable power for around 2 million homes. This project has a 2030 target for completion, and the Government has committed to investing $6 billion over the construction period.
- An additional $1 billion was committed to the Pioneer-Burdekin Pumped Hydro project, which will be located west of Mackay. It will be the largest pumped hydro energy storage in the world, with the potential for stage one to be completed by 2032.
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Renewable Energy and Storage
Key renewable energy and storage investments include $212.6 million for CleanCo renewables projects in Central Queensland and the Swanbank Battery, $673 million for Stanwell to develop the Wambo and Tarong West Wind Farms and large-scale batteries, and $312.1 million for CS Energy to invest in Central Queensland wind farms and large-scale batteries.
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CopperString 2032
The government’s $5 billion investment in CopperString 2032 will deliver a 1,100-kilometre transmission line from Townsville to Mount Isa, connecting the North West Minerals Province to the National Electricity Market. CopperString 2032 is one of the most significant investments in economic infrastructure ever seen in North Queensland and the largest expansion to the power grid in Australia. The Queensland Government is investing an additional $1.06 billion into CopperString 2032, which is likely the result of the sector-specific price escalations seen Australia-wide.
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More Regional Infrastructure
One of the biggest positives coming out of the state budget is a committed investment in regional infrastructure. The budget invests $13.308 billion in 2023–24 in projects outside of the Greater Brisbane region, supporting around 38,500 jobs. In addition to the investments in pumped hydro, renewable energy storage and CopperString 2032 is:
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- $550 million towards the Fitzroy to Gladstone water pipeline, enabling long-term water security in the region
- $440 million towards Sunwater’s Burdekin Falls Dam Improvement and Raising Project, improving and raising the dam by 2 metres to further support water security, noting this is on top of the existing $100 million commitment towards the project
- $500 million for CleanCo to support a 2.3-gigawatt portfolio of wind and solar projects in Central Queensland
- $100 million for Gladstone Port Corporation’s Northern Land Expansion project, subject to approvals, supporting the release of additional land at Gladstone Port and the development of renewable energy and other industries
- $50 million for the replacement of North Queensland Bulk Ports’ Bowen Wharf, with the plans, designs and approvals subject to further consultation with stakeholders.
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Transportation Network
Key regional transport projects supported by the 2023–24 Budget include:
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- The ongoing Bruce Highway Upgrade Program, which includes $1 billion to construct Cooroy to Curra (Section D), $662.5 million to upgrade the Bruce Highway between Caboolture−Bribie Island Road and Steve Irwin Way, $350 million to construct a new road to connect the Bruce Highway with Mackay−Slade Point Road, and $336 million towards a bypass of Tiaro
- Construction of Stage 3 of the Gold Coast Light Rail, which will connect to the existing Gold Coast Light Rail network (from Helensvale to Broadbeach South), delivering a 6.7-kilometre extension from Broadbeach South to Burleigh Heads and providing 8 additional stations
- Funding the Logan and Gold Coast Faster Rail (Kuraby to Beenleigh) upgrade, with a plan to increase the number of tracks between Kuraby and Beenleigh from 2 to 4 tracks, with modernised rail systems, station upgrades and level crossing removals along this 20-kilometre corridor
- Establishing the Queensland Train Manufacturing Program (QTMP), which will build 65 new 6-car passenger trains at a purpose-built manufacturing facility at Torbanlea, in the Maryborough region, as well as construct a new rail facility at Ormeau, in the Gold Coast region
While these are largely increased funding commitments to existing projects, we support the new construction projects and upgrades.
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The 2032 Olympic and Paralympic Games
The 2023–24 Budget has provisions for total capital expenditure for Brisbane 2032 venues infrastructure of $7.1 billion over 10 years, which we certainly support. This venues infrastructure program is jointly funded by the Queensland and Australian Governments to support the hosting of Brisbane 2032. The venues infrastructure program includes:
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- The $2.5 billion Brisbane Arena
- The $2.7 billion Gabba redevelopment
- $1.9 billion into 16 new and upgraded venues
The government is also providing additional funding of $100.3 million over 4 years and $13.6 million per year ongoing for Brisbane 2032 activities.
A further $154.7 million will be provided over 4 years from 2024–25 for Economic Development Queensland to bring forward delivery of public infrastructure to facilitate the development of services and land for the Brisbane Athlete Village.
Also included is a $44 million contribution to the University of Queensland’s proposed Paralympic Centre of Excellence.
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IAQ recognises that there are more investments in Queensland’s infrastructure that are not contained within the ‘The Big Build’ headline.
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Other Major Infrastructure Investments
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Social Housing
We are delighted to see that the 2023–24 Budget is providing increased funding of $1.1 billion for the delivery and supply of social housing across Queensland through the Housing and Homelessness Action Plan 2021–2025, including to meet higher construction costs and to boost the QuickStarts Queensland program target by 500 homes, bringing it to 3,265 social housing commencements by 30 June 2025.
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Build to Rent Concessions
As part of the 2023–24 Budget, the government will provide build-to-rent tax concessions to support developments that provide at least 10 per cent of dwellings as affordable housing at discounted rents. Incentivising the development of affordable rentals is a positive step forward in solving the rental crisis.
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Land Releases
To stimulate growth and facilitate unlocking 50,000 residential lots in the Ripley Valley and Greater Flagstone Priority Development Areas, the government has increased the Catalyst Infrastructure Fund by $21.2 million.
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Hospitals and Health Infrastructure
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The 2023–24 Budget provides for $24.153 billion in operating funding, a 9.6 per cent boost to the health system, for total funding of $25.791 billion. The pandemic laid bare existing problems throughout Queensland’s healthcare network, and this is a hugely positive step towards alleviating the stresses that the network continues to face.
A $2.9 billion uplift has been invested into health funding to address demand and cost pressures and support programs and initiatives targeting improving ambulance responsiveness and reducing ramping, addressing pressures on emergency departments, reducing wait times for surgery and specialist clinics, as well as boosting women’s health care and mental health care. More specifically:
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- $10.8 million in 2023–24 for 40 new ambulance vehicles
- Up to $70,000 for medical practitioners and $20,000 for health care workers to relocate to Queensland
- $5,000 cost-of-living allowance for nursing and midwifery students doing placements in rural and regional Queensland
- $586.1 million towards a new 10-year agreement with LifeFlight Australia
While these are not direct infrastructure investments, we believe that they will make Queensland a more attractive destination to work and live in. This is likely to help reduce the critical skills shortage in the state.
Regarding infrastructure, the government committed to continue the investment of $9.785 billion to increase bed capacity across the state. In addition to existing measures, the budget will increase bed capacity by:
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- Opening Satellite Hospitals at Caboolture, Kallangur, Ripley, Eight Mile Plains, Tugun, Bribie Island and Redlands
- Redeveloping the Caboolture and Logan Hospitals
Also included is $150 million for a new mental health facility at the Redland Hospital.
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Major Non-Infrastructure Investments
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First Nations
First Nations investments include $167 million to support the Our Way initiative intended to reduce the rate of over-representation of First Nations children in the child protection system, and $38.6 million for Managing Country with First Nations peoples. We believe this is a step in the right direction.
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Cost of Living
$1.6 billion has been allocated to tackle the cost of living in the 2023-24 budget, which includes:
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- Major rebates on electricity bills to all Queensland households
- $645 million over 4 years for 15 hours per week of free kindy for all 4-year-olds
- $70.3 million over 4 years to increase assistance to regional patients through the Patient Travel Subsidy Scheme
- Up to $150 for eligible children aged 0 to 4 years for learn-to-swim activities
- $2.7 million over 2 years to extend and expand school breakfast programs in areas experiencing hardship across Queensland
- $315,000 to provide grant funding to Foodbank to deliver critical food relief.
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IAQ is supportive of the investments the government has put into the energy transition, health infrastructure, transport and housing. We are particularly impressed by the investment into Queensland’s regions – and the recognition that they are key to our economic growth.
Regards
Louise Van Ristell, IAQ CEO
ceo@iaq.com.au | 0407 557 701
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