Queensland Treasurer Cameron Dick has unveiled his fifth budget, introducing several cost-of-living relief initiatives totalling $11.2 billion. Notable features include:
Electricity Bill Rebate: Queensland households will receive a $1,000 rebate on their electricity bills starting from July 1. This rebate complements the Federal Government’s $300 quarterly rebate. Seniors, pensioners, and concession card holders will also receive an additional $372 reduction.
Commuter Fare Reduction: Train, bus, and rail fares will be significantly reduced during a six-month trial. Premier Steven Miles emphasizes that this initiative aims to alleviate cost-of-living pressures and traffic congestion. For example, commuters travelling from Robina on the Gold Coast to Bowen Hills in inner-city Brisbane will see their weekly fare drop from $91.68 to just $4, saving over $2,100 in six months.
First-Home Buyer Benefits: Stamp duty concessions for first-home buyers have been expanded. The threshold for the first-home owner concession will increase from $500,000 to $700,000, with a gradual phase-out of up to $800,000. The vacant land concession threshold will also rise from $250,000 to $350,000.
Vehicle Registration Discount: Queensland drivers will enjoy a 20% reduction in vehicle registration fees for 12 months. For a private-use four-cylinder vehicle, this translates to an almost $85 reduction, bringing the total fee down to $338.75 (excluding CTP). Pensioner concessions will also apply, further reducing costs.
Junior Sports Vouchers: Families with children aged 5 to 17 will receive a $200 voucher to encourage participation in junior sports. This expansion of the FairPlay program increases the total number of vouchers from 50,000 to 200,000, benefiting eligible families across the state.
Educators: Thousands of additional teaching support staff will be hired and more professional resources will be allocated. Of this, $1 billion will be delivered over five years for improved education and “better learning environments.”
Foreign Buyers: While the State Government provides relief for first-home buyers, foreign investors face increased stamp duty rates. The foreign investor land tax surcharge has risen to 3% to offset discounts granted to Queenslanders. Additionally, the transfer duty surcharge now stands at 8%.
Coal and Gas Lobby: Queensland’s lucrative royalty system for coal and gas remains intact. The progressive royalty tier system is expected to generate $3.6 billion in revenue by the end of this financial year. However, its impact is projected to decrease significantly over the forward estimates. Coal prices are forecasted to normalize, reaching approximately $1.3 billion in 2024-25 and averaging around $485 million annually until 2027-28. The new tiers aim to ensure Queenslanders receive a fair share of extraordinary revenues during periods of unexpectedly high coal prices.
Renters: Cost-of-living relief measures will alleviate the burden for renters in Queensland. However, specific policies or funding measures geared toward renters were not outlined in the budget. The Government has strengthened renters’ rights through the Residential Tenancies and Rooming Accommodation and Other Legislation Amendment Act 2024, applying annual rent increase frequency limits to rental properties for a fairer approach.
Small Businesses: Many of Queensland’s small businesses missed out on additional funding, except for the launch of the Queensland Small Business Strategy 2024-27. Approximately 205,000 businesses will still receive a $650 reduction in electricity bills. CPA Australia expressed disappointment, emphasizing the need to expand measures that boost business growth and benefit all Queenslanders.
University Students: Apart from the signature 50c fares and increased free TAFE courses, few other incentives were added for university students in this budget.
National Firearms Registry: Queensland will fund the costs associated with its support for the National Firearms Registry, although the specific figure remains undisclosed in this budget.
For more information on Queensland’s 2024-25 State Budget, visit the Government’s Budget website.
Ciara Quinn is an Employee of Alman Partners Pty Ltd, Australian Financial Services Licence No: 222107.
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