Our Economic Strategy
Delivering for Queenslanders
Queensland’s strong economic performance is enabling the Queensland Government to continue to address the challenges facing Queenslanders today, while also laying a solid foundation for future growth and prosperity.
Despite subdued global economic conditions, the Queensland economy grew by 2.3 per cent in 2022–23. In October 2023, employment in Queensland was 286,900 persons, or 11.1 per cent, above its pre-COVID level of March 2020.
This strong economic and labour market performance, and the impact of high coal prices, has enabled the Queensland Government to deliver nation-leading cost-of-living support to Queensland households and businesses, while also funding investments in critical infrastructure and services that support long-term growth.
As outlined in the 2023–24 Budget, the government is providing a record $8.224 billion in concessions in 2023–24 to support families and businesses facing cost-of-living pressures, an increase of more than 21 per cent from 2022–23. Since then, the government has announced further significant support for Queenslanders facing cost-of-living pressures, including to help address housing affordability challenges by boosting the First Home Owner Grant.
As well as addressing immediate challenges, the government’s economic strategy is continuing to support Queensland’s transition to a more sustainable and diversified economy, by focussing on key enablers of growth including infrastructure investment, a skilled workforce, a competitive investment and trade environment, innovation and technology, and enhancing the state’s strong Environmental, Social and Governance (ESG) credentials.
The government is delivering the productivity-enhancing economic and social infrastructure needed to support a growing Queensland. This includes the Big Build capital program which is supporting the state’s economic and energy transformation and improving the liveability and sustainability of Queensland communities.
These investments will support the growth of Queensland’s traditional and emerging industries and create more jobs across the state.
To capitalise on these opportunities, the government is also investing in the growth and development of Queensland’s workforce. Queensland’s Clean Energy Workforce Roadmap, released in October 2023, builds on the Good people. Good Jobs: Queensland Workforce Strategy 2022–2032 and sets out a $30 million roadmap to create a skilled, job-ready workforce to deliver Queensland’s clean energy transformation.
Box 1: Cost-of-living relief for Queenslanders
The global inflationary environment since the COVID-19 pandemic drove up the cost of living around the world and nationally. However, as global and domestic supply chains have responded and tighter interest rate settings have curbed demand, the inflation rate, while still high, is moderating.
Annual Consumer Price Index (CPI) growth in Queensland has clearly peaked, having now fallen for four consecutive quarters from a peak of 7.9 per cent in September quarter 2022. The latest quarterly CPI data show Brisbane’s headline CPI rose 0.7 per cent in September quarter 2023, to be 5.2 per cent higher over the year.
The key contributors to CPI growth over the year to September quarter 2023 in Brisbane were housing (including rents), food and automotive fuel costs. Housing was up 5.3 per cent, food and non-alcoholic beverages up 4.6 per cent and fuel up 9.0 per cent over the year.
However, there are clear signs that growth in construction costs is stabilising following an extended period of material and labour supply constraints, which saw construction costs surge in 2022 (Chart 1). Annual growth in residential construction costs in Queensland in September quarter 2023 had fallen to 1.9 per cent, compared with the peak of 28.4 per cent growth recorded a year earlier.
Chart 1: Residential construction input and output cost inflation
The Queensland Government is acutely aware of the challenges Queenslanders are currently facing in terms of national cost-of-living pressures. That is why in the 2023–24 Budget, the government provided a record $8.224 billion in concessions to Queensland families and businesses.
In particular, the Budget delivered $1.483 billion for additional electricity bill support to households and small businesses facing cost-of-living pressures. As part of the package, all Queensland households are automatically receiving a $550 Cost of Living Rebate on their electricity bill in 2023–24, while around 600,000 vulnerable households will benefit from a higher $700 Cost of Living Rebate.
In addition, vulnerable households will continue to receive the existing $372 rebate under the Queensland Electricity Rebate Scheme, bringing total support for this group to $1,072 in 2023–24.
The first instalment of this package has had an immediate impact on lowering inflation, with Brisbane electricity prices falling by 10.2 per cent in the September quarter. In comparison, the ABS estimated that electricity prices would have increased by 21.5 per cent in the absence of the government’s overall energy bill relief.
The 2023–24 Budget also provided 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.
The Budget also committed over $150 million over 5 years to provide temporary accommodation and extend and enhance housing and homelessness services. In addition, the Queensland Government is actioning key reforms, including limiting rent increases to once a year to give a fairer go to Queenslanders who rent.
The government is also providing $64.3 million for the Remote Community Freight Contracts – Northern Peninsula, Torres Strait and Gulf region, to be delivered through a freight retail discount scheme applied at the cash register on eligible essential goods at participating retailers, to assist those living in the Cape York, Torres Strait and Gulf regions.
Since the 2023–24 Budget, including in this Budget Update, the Queensland Government has announced further significant support for Queenslanders facing cost-of-living pressures.
Boost to First Home Owner Grant
The government has temporarily doubled the First Home Owner Grant for eligible first home buyers to $30,000, estimated to support around 12,000 Queenslanders to unlock their first home by 30 June 2025, when the boost is set to expire. This increase means Queenslanders will now have access to the equal highest First Home Owner Grant in Australia, and triple the grants available in New South Wales, Victoria and Western Australia.
Freeze on motor vehicle registration costs
To further alleviate cost of living pressures on Queenslanders, the Government has frozen the registration fee and traffic improvement fee components of Motor Vehicle Registration Costs for 2024–25.
Freeze on public transport fare increases
Fare increases on Queensland public transport services will be frozen in 2024.
Other cost of living support for vulnerable Queenslanders
The Budget Update also provides $557,000 in 2023–24 and $1.1 million in 2024–25 to maintain critical investment in financial counselling and resilience services until 31 December 2024, and $1.95 million in 2024–25 to maintain critical funding for food relief and emergency relief until 31 December 2024.
