Overview
The 2023–24 Budget Update incorporates the changes to the state’s economic and fiscal position since the 2023–24 Queensland Budget.
The fundamentals of the budget and economy remain strong with highlights including the state recording:
- economic growth of 9.8 per cent since the pre-COVID level in 2018–19 – stronger than national GDP growth of 9.3 per cent over the same period
- unemployment rate averaging 3.7 per cent in 2022–23, the lowest year-average unemployment rate since 2007–08 and the second lowest on record since 1978
- employment in October 2023 being 286,900 persons (or 11.1 per cent) above its pre-COVID level of March 2020, accounting for one quarter of national job gains over the period
- a small net operating deficit of $138 million is forecast for 2023–24, which is a $2.044 billion improvement on the deficit projected in the 2023–24 Budget
- the improvement in 2023–24 follows on from Queensland’s record General Government Sector net operating surpluses of $13.93 billion for 2022–23 and $4.3 billion in 2021–22 which benefitted from high coal prices and from June 2022 the introduction of new progressive coal royalty tiers
- modest surpluses are still forecast from 2024–25 onwards, as commodity prices normalise, consistent with previous updates
- General Government Sector net debt is estimated to be $14.676 billion by 30 June 2024, which is $1.514 billion lower than projected in the 2023–24 Queensland Budget.
Queensland’s ongoing strong economic recovery and performance following the COVID-19 pandemic continues to highlight the resilience of the state’s diversified economy.
The strong labour market and population growth, combined with significant public investment, have supported solid domestic activity. After growing by 2.3 per cent in 2022–23, overall economic growth is forecast to strengthen to 3 per cent in both 2023–24 and 2024–25.
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. These include 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.
General Government Sector revenue in 2023–24 is estimated to be $3.7 billion higher than estimated at the time of the 2023–24 Queensland Budget. The improved revenue outlook in 2023–24 primarily reflects upward revisions to coal and petroleum royalties, due to higher-than-expected global metallurgical coal and oil prices being received by Queensland’s key commodity producers.
The record 2022–23 net operating surplus and improved fiscal position in 2023–24 provides Queensland with the capacity to deliver additional costofliving measures, while also supporting the state’s record capital program over the next 4 years.
Building on the record $8.224 billion in concessions outlined in the 2023–24 Budget, the government is providing more support to families and businesses facing cost-of-living pressures, including:
- boosting the First Home Owner Grant until June 2025
- freezing the registration fee and traffic improvement fee components of Motor Vehicle Registration Costs in 2024–25
- freezing public transport fares in 2024.
The government is delivering productivity-enhancing economic and social infrastructure needed to support a growing Queensland. The 2023–24 Budget Update includes a current capital program of $96.2 billion over the 4 years to 2026–27. Enhancements that have been incorporated into the capital program in recent budgets include delivering increased health system capacity, decarbonisation of the state’s energy system, improving water security and preparing for the Brisbane 2032 Olympic and Paralympic Games. The government is keenly aware of cost pressures and continues to work closely with the Australian government on its Infrastructure Investment Program review.
