2022-2023 Queensland Budget update
Posted on December 13th, 2022
Queensland’s economy continues to lead the nation, according to the State’s 2022-23 Budget Update.
Queensland’s economy grew 4.4 per cent in 2021-22, stronger than National GDP growth of 3.6 per cent.
A record $5.2 billion surplus is now forecast for 2022-23, largely driven by higher resources royalties on the back of a temporary surge in global coal and oil prices, with a $3 billion long-term commitment to invest in future regional projects.
The Resources Community Infrastructure Fund has been enlarged by $120 million with a special focus on coal-producing regions including Isaac, Central Highlands, Banana, Western Downs and the Whitsunday local government areas.
In recognition of Isaac and Central Highlights delivering more than 80 per cent of Queensland’s saleable coal produced, $1.8 million will be allocated to support $3.6 million in total State funding for the Phillips Street Bridge replacement project.
The Isaac Resource Excellence Hub will also receive priority consideration under the Fund, subject to the project assessment process, delivering a resource knowledge centre for mining innovation and research, to transform jobs and skills.
Projects forming part of the Queensland Energy and Jobs Plan will be funded including supporting workers in Queensland’s publicly owned coal-fired power stations ($150 million) and Regional Economic Futures ($200 million), which will have a special focus on coal-producing regions.
To position Queensland to ride the wave of the next resources boom, $100 million will be put aside for a new Queensland Critical Minerals Investment Fund and $150 million will support critical minerals development via Common User Infrastructure projects, including in north-west Queensland with its abundant critical mineral deposits to supply surging global demand for resources that are critical to manufacturing renewable energy technologies such as batteries, hydrogen electrolysers, and electric vehicles.
This investment supports the delivery of the $62 billion Queensland Energy and Jobs Plan and the transformation of Queensland’s energy system to deliver clean, reliable and affordable energy to provide power for generations.
2022-23 Budget Update highlights include:
- Queensland is forecast to record solid economic growth of 2½ per cent in 2022-23 and 2023-24, down slightly from 2.75 per cent forecast in June 2022.
- Year-average employment growth is forecast to remain strong at 2¾ per cent in 2022‑23, before easing to 1.5 per cent in 2023-24.
- The budget position within the General Government Sector is a record surplus of $5.18 billion in 2022-23
- Net debt is expected to be $5.238 billion lower than was forecast in the 2022-23 Budget
- Total Revenue has been revised upwards by $7.341 billion for 2022-23 and $2.742 billion in 2023-24
- Coal and Petroleum Royalty revenue has been revised up by $5.820 billion in 2022-23, driven by coal and oil prices, with a weaker Australian dollar.
- New coal royalty tiers are expected to raise revenue of $2.954 billion for Queenslanders in 2022-23.
The Treasurer said the record surplus, continued positive employment numbers and rebounding economic outputs in the Budget Update are positioning Queensland well, with traditional resources, agriculture and manufacturing sectors continue to perform strongly.
The volume of agricultural exports rose by 15 per cent in 2021-22, driven by increases in crops including cotton.
Investments in renewable hydrogen and energy generation are adding further diversity to the economy with ongoing solid economic growth is expected in 2022-23 and 2023-24.
For further information, visit www.budget.qld.gov.au.
