On Tuesday June 11 2024 the Queensland Treasurer delivered his fifth Budget and the first for the Miles Government.
In what is likely a surprise to no one, the focus of the budget is squarely on cost-of-living relief with further measures announced to complement the raft of policies announced prior to the Budget delivery. In total, this Budget has committed $11.218 billion in concessions in 2024-25.
Health
Such is the emphasis on cost of living relief that a record increase in funding in the health budget, in excess of the average annual increase, only came in the second half of the Treasurer’s budget briefing to media and stakeholders on budget day.
Rising by over 10% for 2024-25, up from the average 6% annual health budget increase, the additional funding is committed to delivering significant upgrades to hospital facilities across the state, improving inpatient and emergency patient services and importantly supporting and retaining the existing workforce and attracting new staff.
It was pleasing to find the $3,000,000 per year funding included as part of the Mental Health and Alcohol and Other Drug Services funding line item, as recommended in McKell’s 2023 report Communities in Crisis: Lifeline QLD Supporting Those in Need.
Jobs and housing
The budget also saw a commitment of $26 billion over 4 years to ramp up the delivery of the Queensland Energy and Jobs Plan. The QEJP is a centrepiece of the government’s attempt to frame the next election as one about the next 10 years rather than a response to their last decade in power.
The previously announced Homes for Queenslanders plan to address the housing crisis saw $2.8 billion announced in the 2024–25 Budget, bringing the total investment in this strategy to $3.1 billion. This is a record investment in housing but it is yet to be seen if these measures will alleviate the issues so many renters and those wanting to enter the housing market are facing.
All in all there were very few new projects announced on budget day with the majority of the big pieces having been released prior. This is a real takeaway from the 2024-25 Budget. Where Budget Day often delivers funding for a list of new projects across the state, this year was more subdued and instead provided the funding profile for a lot of the previously announced large infrastructure projects that are now coming into the forward estimates.
Surprises
Having heralded the largest surplus of any state in the nations history the state is headed for two deficit years with a return to surplus forecast for the 2026-27 financial year.
The Treasurer cited the short term cost of living relief measures and the pressure from greater than expected migration as the main causes noting that the equivalent of the city of Mackay relocating to Queensland from interstate and overseas since the start of COVID placing significant strain on services and pressure for infrastructure upgrades.
The other big surprise of the budget was of course the unexpected commitment from David Crisafulli in support of this budget before even the Premier or Cabinet had signed off on it.
David Crisafulli was quoted “If projects are fully funded, if they’re in the budget, if they’re underway, good governance and good oppositions honour those commitments.”
While this commitment may make for a pointless budget reply speech it may prove to be an astute move electorally with electors rewarding the commitment to stability in October.
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