Expenses
In 2023–24, General Government expenses are estimated to be $85.926 billion, compared to the 2023–24 Budget estimate of $84.261 billion. The increase largely arises from technical adjustments such as increased depreciation following revaluations of infrastructure in 2022–23, as well as around $600 million for a range of measures such as disaster relief, housing and support for victims of crime.
The 2023–24 Budget included a substantial increase in expenses in 2023–24 for largely temporary factors including significant Disaster Recovery Funding Arrangements expenses for the South East Queensland rainfall and flooding event in the summer of 2022, Cost of Living Adjustment (COLA) payments for public sector enterprise bargaining agreements and $1.483 billion in additional electricity support to households and small businesses facing cost-of-living pressures.
General Government Sector expenses are expected to decline by 2.2 per cent in 2024–25 as most of the
cost-of-living measures announced in the 2023–24 Budget are targeted to addressing inflationary pressures within 2023–24.
Across the forward estimates, General Government expenses have increased since the 2023–24 Budget, supported by the stronger than expected revenue outlook. The government has expanded the range of
cost-of-living measures available to Queensland families and small businesses to include: boosting the First Home Owner Grant, freezing the registration fee and traffic improvement fee components of Motor Vehicle Registration costs in 2024–25, and freezing public transport fares in 2024.
Other key policy measures increasing expenses across the forward estimates include:
- a support package for educational engagement for a range of students, including those needing additional support to remain engaged or become re-engaged in learning and those involved in youth justice.
- strengthening support for victims of crime
- advancing Queensland’s Quantum and Advanced Technologies Strategy
- extending support to non-government organisations and community programs that provide services to keep Queenslanders safe
- a support package for workers impacted by the closure of Glencore’s Mount Isa Copper Operations and Lady Loretta Zinc Mine
- implementing the Service Queensland Action Plan (2023 to 2028) to create a digital wallet, provide ongoing support for the Digital Licence App, facilitate customer movement to the Queensland Digital Identify platform and to prepare for modernising the transport registration.
General Government expenses are estimated to grow at an average annual rate of 3.4 per cent over the 4 years to 2026–27. Excluding royalty revenue, revenue is forecast to grow at an average annual rate consistent with expenses growth.
Emerging Fiscal Pressures
Beyond general uncertainties related to budget parameter assumptions key emerging fiscal issues include:
- Risks to the longer–term outlook for Queensland’s GST revenue beyond 2029–30 resulting from the changes made to the system of GST revenue distribution by the Australian Government in 2018. The outcomes from the Commonwealth Grant Commission’s 2025 Methodology Review will also impact GST shares from
2025–26. - Queensland’s fiscal position is exposed to decisions made by the Australian Government, including not renewing funding for National Partnership payments where there are ongoing community service needs that must be met. The high-level outcomes of the National Cabinet Meeting of 6 December, with respect to a boost to health funding and additional State contribution on the National Disability Insurance Scheme, still need to be detailed and assessed. The full implications of the Commonwealth’s Infrastructure Review will also need to be assessed as details are confirmed and further dialogue with the Australian Government continues.
- Adverse weather events which are likely to occur in future with the resulting damage expected to impact on the delivery of state initiatives, noting disaster–related expenses are shared with the Australian Government under Disaster Recovery Funding Arrangements (DRFA).
- Challenges arising from delivering significant capital investment in the medium term, including the transformation of the energy system away from reliance on coal-fired generation, meeting future water demand, and preparing to host the Brisbane 2032 Olympic and Paralympic Games.
- The government has a potential liability with respect to compensation arising from acts that have extinguished or impaired native title since 1975.
