Queensland Budget

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2 Advancing Queensland s Economy Growing Innovation $300 billion Economy $53 billion Budget Attracting Investment Creating Jobs More than $40 billion infrastructure over 4 years Building Infrastructure 2

3 Queensland s Economic Plan 3

4 Economic Outlook Strongest economic growth in Australia this year and coming years Economic growth at 3½% in rising to 4% in Growth led by diversified export portfolio, incl. LNG ramp-up Components of growth stabilising, including improving household consumption and business investment Employment growth of 1¾%, unemployment falling to 5 ¾% over FEs

5 INDEX ( = 100) Queensland Budget Economic growth comparisons QUEENSLAND AUSTRALIA OECD 5

6 Annual % change Queensland Budget Fastest growing State economy Est. Actual Forecast NSW Vic. QLD WA SA Tas. Forecast 6

7 Queensland s diversified economy 100% 90% 80% 70% 60% 50% Health care Education and training Finance and property services Transport and communications Other Wholesale and retail trade 40% Construction 30% 20% 10% 0% QLD NSW VIC SA WA TAS NT ACT Public sector and utilites Manufacturing Natural resources Agriculture 7

8 Annual % point contribution Queensland Budget Components of Queensland s growth Household consumption Dwelling investment Business investment Public final demand Overseas exports Overseas imports GSP 8

9 Fiscal Outlook Operating surpluses of $3.2 billion over forward estimates Operating surplus of $867 million for largest in a decade Revenue growth (3.2%) outpacing expenses growth (2.9%) General Govt debt $10.4 billion lower than Budget projection Debt to revenue ratio down from 87% in to 71% in

10 Forecast surpluses $m $1.1b disaster relief withheld by Federal Government Lower GST in Est. Actual Forecast Forecast Forecast Forecast 10

11 Revenue outpacing expenses 56 Average revenue growth 3.2% $ billions 54 Average expenses growth 2.9% Revenue Expenses

12 New fiscal principle Average public service FTE growth over the forward estimates should not exceed population growth. 12

13 Reduction in General Government Debt Budget Budget Budget 46 $ billions

14 Reduction in Non-Financial Public Sector Debt 84 Non-Financial Public Sector gross borrowings $ billions Budget MYFER Budget MYFER Budget 14

15 % Queensland Budget Debt to revenue ratio General government debt to revenue forecasts Budget Debt to Revenue ratio down 15% on forecast Budget Budget

16 Debt Action Plan Defined Benefit Scheme $2b $4b repatriation State Infrastructure Fund $10b surplus $6b remaining surplus $2b Debt reduction Current fund $34b 100% Fully funded $24b 100% Fully funded $24b All payouts guaranteed by legislation Only fully funded scheme in Australia Scheme funding as at 30 June

17 Revenue measures 3% transfer duty surcharge on foreign purchasers of residential property Tax avoidance crackdown, particularly not-for-profit status 12-month boost to First Home Owners Grant for new builds ($20,000) Transfer duty concession for intergenerational transfers of family farms

18 10 YEAR GOVERNMENT BOND YIELD (PER CENT) Queensland Budget Peer comparison 3.50 Bond yields and gross debt levels for advanced economies Queensland New Zealand Taiwan Korea Hong Kong Norway Australia Singapore Israel United States Slovenia Malta Spain Canada United Kingdom Slovak Republic Czech Republic Ireland Finland Sweden France Austria Belgium Denmark Netherlands Germany Switzerland Portugal Italy GROSS DEBT (PER CENT OF GDP) Non-AAA AAA QLD 18

19 Growing innovation $405 million Advance Queensland Growing Innovation Includes $225 million Advance Queensland acceleration $19.7 million Biofutures roadmap 19

20 Attracting business investment $40 million Industry Attraction Fund Attracting Investment Two new trade offices in China and Singapore $33 million Connecting with Asia tourism strategy 20

21 Market-led proposals $450 million Logan Motorway enhancement 1300 potential jobs $100 million Queensland Aquarium and Maritime Museum $100 million Brisbane International Cruise Terminal 300 potential jobs 21

22 Building Infrastructure More than $40 billion over four years $10.7 billion in Building Infrastructure $2 billion State Infrastructure Fund 31,000 jobs supported in

23 2018 Gold Coast Commonwealth Games $550 million Health and Knowledge Precinct $122 million Carrara Sports Precinct Global investment and sponsorship opportunities 23

24 Environment $21.7 million this year to protect the Great Barrier Reef $89.1 million wildlife and environmental protection $33 million Connecting with Asia Strategy 24

25 Advancing Queensland s Economy Growing Innovation Attracting Investment Creating Jobs Building Infrastructure 25