The Government remains committed to reducing the level of General Government Sector debt. Debt is expected to be $10.4 billion lower than the 2014-15 Budget projection.
In order to responsibly manage the State’s finances, the following measures are being undertaken while retaining 100% ownership of our assets. The Government will also continue to fully fund superannuation entitlements, a core pillar of our strong fiscal management.
The Debt Action Plan includes:
1.Surplus repatriation from the Defined Benefit Superannuation Scheme
The State Actuary’s most recent valuation indicates that as at 30 June 2015 the defined benefit superannuation scheme has a surplus of more than $10 billion on a funding basis. In light of the strong financial position of the scheme, the Government will repatriate $4 billion from the previous over–contribution to the scheme by the Government.
2.Government–owned corporations cash management arrangements
Revised cash management arrangements to ensure more effective use of the Government’s available cash resources.
As announced in the 2015-16 MYFER, the Government is implementing a regearing strategy for a number of Government- owned corporations.
General Government Debt to Revenue Ratio
The debt to revenue ratio is declining significantly over the forward estimates to reach 68% in 2019-20 compared to 87% in 2014-15.
General Government Sector debt is estimated to be $4.4 billion lower in 2019-20 than 2014-15.
Revenue and Expenses
Transfer duty surcharge
for foreign purchasers of residential property
A 3% transfer duty surcharge for foreign buyers of residential property in Queensland.
This measure will not directly affect Queensland residents. It will ensure foreign purchasers of residential property, who benefit from Government services and infrastructure, make a contribution to their delivery.
Tax avoidance crackdown
The Government will make it fairer for Queenslanders who comply with their tax requirements by increasing the compliance activity of the Office of State Revenue (OSR). This increased activity will crack down on compliance in relation to key taxes, such as land tax and payroll tax.