Cost of living
COST-OF-LIVING RELIEF
The Queensland Government recognises the challenges that global and national cost-of-living pressures are causing for Queenslanders. While the rate of inflation has started to moderate, elevated price levels for a range of goods and services are still putting pressure on household budgets across the country.
In 2024–25, the government is providing an estimated record $11.218 billion in concessions to Queensland families and businesses, an increase of more than 31.1 per cent compared with estimated actual concessions of $8.555 billion in 2023–24.
The government is providing $3.739 billion in new and expanded measures in 2024–25 to support Queenslanders in tackling cost-of-living challenges.
This comprises electricity bill rebates, lower public transport fares and motor vehicle registration costs, additional support for first home buyers, an increase in the value and number of FairPlay vouchers, school and community food relief program, and food, emergency and financial relief measures for vulnerable cohorts.
The 2024–25 Budget is responding to the cost-of-living pressures confronting Queensland households arising from a unique set of circumstances. These pressures will ease as inflation falls, real wages continue to grow, significant Australian Government income tax cuts are delivered from 1 July 2024, and interest rates in time begin to fall. Accordingly, these elevated levels of assistance are helping households meet these immediate pressures and are not ongoing.
Electricity bill rebate
In 2024–25, the Queensland Government is delivering the most significant electricity bill support package of any state or territory.
As part of this $2.965 billion package, all Queensland households will automatically receive $1,300 off their electricity bills in 2024–25, consisting of an upfront $1,000 Cost of Living Rebate from the Queensland Government and a $300 rebate paid in quarterly instalments from the Australian Government.
Vulnerable households will continue to receive the $372 Queensland Electricity Rebate, for a total of $1,672 support in 2024–25.
Around 205,000 eligible Queensland small businesses will also receive a $650 credit on electricity bills in 2024–25, co-funded by the Queensland and Australian governments.
Recent data from the ABS shows that the $550 electricity bill rebate provided in the 2023–24 Budget lowered electricity bills by 9.4 per cent, which contributed to inflation in Brisbane being lower than the national average.
For a typical residential customer across Queensland, $1,300 off their electricity bill may represent more than 60 per cent of their estimated annual household electricity bill in 2024–25, meaning many Queenslanders may not pay another bill until 2025.
Motor vehicle registration fee reduction
As part of the 2023–24 Budget Update, the government announced a freeze to the registration fee and traffic improvement fee components of motor vehicle registration costs in 2024–25, at an estimated cost of $281.8 million over 4 years (including $66.7 million in 2024–25).
Further support is being provided to Queenslanders in the 2024–25 Budget, with a 20 per cent reduction in the registration fee and traffic improvement fee components of motor vehicle registration for all light vehicles, including motorcycles and trailers, for 12 months. The fee reduction will start appearing on renewal notices sent to customers from 5 August 2024.
A 20 per cent reduction to light vehicle registration fees is estimated to cost $435 million over 2 years (including $399 million in 2024–25), and would equate to a saving of almost $85 for a four-cylinder private use vehicle for 12 months, reducing the registration fee amount to approximately $338.75 (excluding CTP).
It is estimated that the reduction will benefit owners of around 5.7 million vehicles across the state.
Public transport temporary fare reduction
From 5 August 2024, a flat fare of 50 cents per trip will be applied across the state’s public transport network for 6 months. This is estimated to save public transport customers $150 million in 2024–25. In addition to this initiative, the government is also providing half-price tickets on Airtrain services.
Public transport usage remains about 13 per cent below pre-COVID levels. Significantly reducing the cost of public transport will encourage more people to leave the car at home, leading to a reduction in road congestion. A single bus takes 50 cars off the road and a train takes 600 cars off the road.
This is in addition to a freeze on the public transport fare increase in 2024, at an estimated cost of $62.3 million over 5 years.
FairPlay vouchers
Under Activate! Queensland 2019–2029, the Queensland Government delivers direct financial support via FairPlay vouchers to help Queensland children and young people aged between 5 and 17 years to participate in sport and active recreation activities.
The FairPlay voucher provides relief to vulnerable households facing cost- of-living pressures and helps young Queenslanders to pursue a healthy lifestyle. This will deliver tangible economic and social dividends over many years to come.
Building on the success of these vouchers, the government has now committed a further $33.5 million in 2024–25, bringing the total funding to $40 million in 2024–25. This will increase the maximum value of the FairPlay voucher from $150 to $200, and increase the number of vouchers available from 50,000 to up to 200,000.
Importantly, 50,000 vouchers will be guaranteed to the current target eligible cohort, with an additional 150,000 vouchers to be made available to all households.
School and community food relief
Correct nutrition can not only impact on a child’s physical health but can also affect their mood and engagement with learning. School food programs provide essential support to families as cost-of-living pressures impact their ability to provide for their children.
In 2024–25, the government will provide $15 million for the School and Community Food Relief Program. This initiative will assist children to access food relief from appropriate sources, ranging from subsidised lunches, breakfasts or tuckshop items. School food programs provide essential support to families as cost-of-living increases impact their ability to provide for their children.
Food, emergency and financial relief measures
The 2024–25 Budget also includes a range of other targeted measures that will provide food, emergency relief and financial resilience services for disadvantaged Queenslanders facing cost-of-living pressures, including:
- An additional $3.3 million over 2 years from 2024–25 for OzHarvest and SecondBite to provide food relief across Queensland.
- $2.9 million over 4 years for Foodbank Queensland to allow increased warehousing space in Brisbane, as well as supporting increased food storage and supply through the establishment of a distribution point in north Queensland.
- An additional $1.7 million in 2024–25 for the continuation of increased provision of Emergency Relief in communities across Queensland, including through an additional 92 Neighbourhood Centres and into discrete First Nations communities.
- A doubling of funding to Queensland Meals on Wheels, with the government committing $1.2 million over 4 years to extend and increase funding to $300,000 per annum ongoing to enable greater support, guidance and coordination to be provided across the Queensland Meals on Wheels network.
- An additional $1.1 million in 2024–25 for the continuation of the Queensland Financial Resilience Program to deliver vital support to people experiencing financial hardship to improve their capacity to manage their personal finances.
Additional support for first home buyers
The government will be providing substantial additional support to a wider range of Queenslanders purchasing their first home by increasing eligibility thresholds for two key transfer duty concessions.
Eligibility for the first home concession will be extended to homes with a dutiable value up to $800,000 (up from $550,000 currently), and first home vacant land concession eligibility will be extended to vacant land with a dutiable value up to $500,000 (up from $400,000 currently).
These changes will increase the maximum value of the first home concession by $8,600 (to a total of $17,350) and the maximum value of the first home vacant land concession by $3,500 (to a total of $10,675).
It is estimated that around 10,000 first home buyers across Queensland will benefit from the increased concessions each year.
A HELPING HAND FOR QUEENSLANDERS
Supporting Queensland’s most vulnerable
The 2024–25 Budget is providing support for some of Queensland’s most vulnerable.
The Queensland Government has provisioned additional funding of over $160 million towards a package of disability reforms to provide an initial response to the recommendations of the Royal Commission into Violence, Abuse, Neglect and Exploitation of People with Disability, and the National Disability Insurance Scheme (NDIS) review.
The Queensland Government is working with state and territory governments and the Australian Government to finalise responses to the Royal Commission, with responses expected to be released later this year, and to implement National Cabinet’s decision to design additional foundational supports for people with disability.
As part of the over $160 million package, immediate investment will be made across a number of initiatives to improve services for people with disability, including:
- $5 million in 2024–25 to expand individual and systemic advocacy
- $10 million in 2024–25 to provide a temporary uplift to the Queensland Community Support Scheme, which assists Queenslanders not eligible for the NDIS to live independently
- $6.5 million in 2024–25 for a pilot of a Hospital Assistive Technology Loan Pool and an expansion of supports provided under the Medical Aids Subsidy Scheme
- $24.4 million over 5 years:
- for a sector led stakeholder engagement strategy
- to improve disability data and reporting
- for strategic leadership, implementation and monitoring of disability reforms across the Queensland community, including whole-of- government coordination.
This Budget is also supporting multicultural communities across Queensland, including:
- $4.8 million over 2 years to expand support under the Asylum Seeker and Refugee Assistance Program
- $1 million over 2 years for broader engagement with children through the Queensland Program of Assistance to Survivors of Torture and Trauma
- $2.6 million over 2 years as part of the Community Safety Plan for Queensland to support the African Youth Support Council’s African Villages in Moorooka, Geebung and Redbank Plains to build a sense of belonging, identify and establish strategic partnerships, engage with the system and build positive relationships in safe spaces for African youth and community members.
Concessions
The Queensland Government provides a range of concessions including subsidies, rebates and discounts across a variety of services and products. The total value of all concessions provided to Queenslanders is estimated to be a record $11.218 billion in 2024–25. This represents an increase of 31.1 per cent compared with estimated actual concessions of $8.555 billion in 2023–24, the largest increase in concessions spending on record.
The Government Managed Housing Rental Rebate continues to target low- income families and individuals and represents the difference between the estimated rents that would be payable in the private market and rent that is charged by government based on household income. Assistance is provided to approximately 55,700 households. The estimated average yearly subsidy per household for 2024–25 is $14,486.
The Textbook and Resource Allowance is available for all parents and caregivers of secondary school-age students to assist with the cost of textbooks and learning resources, providing support of $155 or $337 per student in 2024 (depending on year level).
The government continues to fund 15 hours per week of free kindergarten for all 4-year-olds for up to 40 weeks or 600 hours per year. On average, a family attending a sessional kindy for 15 hours per week that charges $48 per day will save $4,800 a year in fees.
Further information can be found in the Concessions Statement – Appendix A: Budget Paper No. 2 – 2024–25 Budget Strategy and Outlook.
COST–OF–LIVING CASE STUDIES
Retired couple
Derek and Elizabeth are a retired couple in their seventies, with no dependents, living in Palmview on the Sunshine Coast. They both have a Queensland Seniors Card and receive the pension. In 2024–25, the household could be eligible for a broad range of concessions providing a total benefit of more than $4,100.
Concessions available include a $1,300 Cost of Living Rebate plus the existing $372 Queensland Electricity Rebate, bringing total electricity bill support to $1,672 in 2024–25. Derek and Elizabeth are also eligible for other concessions, including a $120 South East Queensland water subsidy, $200 for council rates, $89 for reticulated natural gas, an average benefit of $830 each for general dental care under the Oral Health Scheme, and a $49 registration fee concession for their 4 cylinder vehicle registered on a pensioner concession – reducing the cost of their registration to $195. This reduction is in addition to the existing 50 per cent concession that pensioners receive on the registration fee component of their fees.
Derek and Elizabeth also frequently catch the bus to explore their community, such as shopping in Maroochydore, swimming at Mooloolaba and visiting the hospital. These trips would usually cost $1.74 per trip. Taking an average of 3 trips per week, they will save a combined $357 over 6 months due to the 50 cents flat fare on Translink public transport services across the state for 6 months.
Family eligible for a Health Care Card
Noah and Mia live in Robina on the Gold Coast, have a Health Care Card, and have 3 children aged 4, 13 and 16. In 2024–25, the household could be eligible for a broad range of concessions, providing a total benefit of more than $9,700.
Concessions available include a $1,300 Cost of Living Rebate plus the existing $372 Queensland Electricity Rebate, bringing total electricity bill support to $1,672 in 2024–25. Noah and Mia are also eligible for other concessions, including $492 through the Textbook and Resource Allowance paid to the children’s school and a $85 registration fee concession for their private use 4-cylinder car, bringing registration fees down to $339. The youngest family member will also be eligible for 15 hours of free kindergarten per week – on average, a family with a child attending a sessional kindergarten for 15 hours per week that charges $48 per day will save $4,800 a year in fees. Each of the eldest 2 children benefit from the $200 FairPlay voucher and the youngest child benefits from the $150 SwimStart.
Noah commutes by train from Robina 4 days a week to work in Bowen Hills at a usual cost of $11.46 per trip. Due to the 50 cents flat fare on Translink public transport services across the state for 6 months, the family could save over $2,104 over 6 months.
School-leaver
Samantha is a low-income casual worker, living in Cairns, who has just graduated from high school and has a Health Care Card. In 2024–25, Samantha will be eligible for a range of concessions providing a total benefit of more than $6,200 plus a loan of $1,600.
Concessions available include a $1,300 Cost of Living Rebate plus the existing $372 Queensland Electricity Rebate, bringing total electricity bill support to $1,672 in 2024–25. Samantha is also eligible for an interest- free and fee-free rental bond loan providing average support of $1,600, an average subsidy of $3,483 to undertake her first post-school Certificate III qualification, an average benefit of $830 for general dental care under the Oral Health Scheme, and a $85 registration fee concession for her private use 4 cylinder car, bringing registration fees down to $339.
While studying at the local TAFE, Samantha catches the bus to campus 4 days a week, at a usual cost of $1.20 each way. Samantha could save $134 over 6 months due to the 50 cents flat fare on Translink public transport across the state for 6 months.
IMPACT OF QUEENSLAND GOVERNMENT’S COST-OF-LIVING RELIEF
Based on Queensland Treasury analysis, it is estimated the Queensland Government’s cost-of-living relief measures, when combined with the Australian Government measures, will reduce Brisbane’s headline CPI growth in 2024–25 by around 1¼ percentage-point, reducing CPI growth to 2 per cent.
This comprises an estimated one percentage point reduction in annual CPI growth due to the electricity bill rebates substantially reducing housing- related costs and a further ¼ percentage point reduction due to the combined impact of the Queensland Government’s transport-related cost-of-living relief measures.
Brisbane Headline Consumer Price Index Growth
