Queensland Budget 2007-2008

This afternoon Queensland’s Treasurer, Anna Bligh, brought down the Beattie Government’s 10th Budget, a budget she declared “will keep our economy strong, fair and prepared”¹ . This Hawker Britton Occasional Paper aims to give a brief outline of some of its highlights.

Headline Statistics
  • Forecast 2006-07 operating surplus of $245 million, estimated actual surplus $2.393 billion;
  • Forecast 2007-08 operating surplus of $268 million;
  • Forecast 5% growth (national growth 3.75%); and
  • Forecast 4% unemployment rate (national unemployment rate 5%).
Queensland Future Growth Fund

Using the proceeds of the sale of electricity and gas retails business, the Government established the $3 billion Queensland Future Growth Fund. The fund will provide:

  • $1 billion for enhanced water projects;
  • $600 million for commercial infrastructure including the Government’s energy corporations;
  • $500 million to social housing;
  • $500 million for transport infrastructure;
  • $300 million to clean coal technology research projects;
  • $100 million for renewable and energy saving initiatives; and
  • $100 million to Smart State research projects.
Infrastructure Spending

Including previously announced spending, the 2007-08 Queensland Budget commits to $14 billion worth of capital spending. Most notably:

  • $2.5 billion in water infrastructure;
  • $5.767 billion for main roads and transport (including QR and port infrastructure);
  • $2.76 billion for energy infrastructure.
  • $619.1 million of education, training and the arts; and
  • $635 million for health.
Taxes

The Government is emphasising the existing competitive rates of taxation, arguing that in Queensland, per person, taxes are $131 lower than the average for other states and territories. New announcements include:

  • 50% cut in mortgage duty from 1 January 2008, with full abolition from 1 January 2009;
  • $50 million land tax relief package; and
  • Changes to motor vehicle duty rates from 1 January 2008.

For more information on the budget you can visit www.budget.qld.gov.au or contact your Hawker Britton consultant.

¹ Appropriation Bill 2007 Pg. 1 Second Reading Speech, 5 June 2007