Queensland Budget 2024: What it means for your employees and businesses

Queensland Treasurer Cameron Dick unveiled his fifth budget, introducing significant cost-of-living relief measures totalling $11.2 billion. This comprehensive budget aims to address various economic pressures, particularly those affecting Queenslanders on low incomes. 

With inflation and household costs rising, especially in Brisbane, the budget seeks to offer immediate relief and long-term solutions. Here's a breakdown of how this budget might impact your employees and businesses.

Queensland’s economy is rebounding from the COVID-19 pandemic, but inflation has significantly increased household cost-of-living pressures. Brisbane, in particular, has seen an overall yearly inflation rate of 6.3%, slightly above the national average of 6%. The city also leads the nation in rent, energy, insurance, and health price increases. Economists warn that if wages do not rise accordingly, household consumption may continue to fall, exacerbating financial stress.

Commuter benefits: Will it get easier for Queenslanders?

The budget includes several headline-grabbing measures aimed at easing the financial burden on commuters. Among these are:

• 50c Public Transport Fare Trial: A six-month trial of 50c public transport fares across the state’s system aims to make commuting more affordable.
• Car Registration Discounts: A 20% discount on car registration will provide some financial relief to vehicle owners.
• Power Bill Rebates: Households will receive $1,000 back on their power bills, alongside a freeze on other fees and charges.

While these measures are designed to offer immediate relief, most of them are set to expire early next year, just after election day. Both Treasurer Cameron Dick and Premier Steven Miles have denied that these spending measures are politically motivated.

Green Power System: Business benefits

The Queensland government is making a substantial investment in a new green power system, with $26 billion allocated to this initiative. Key components include:

1. Power Lines and Renewable Energy Projects: Funding includes $1.06 billion for CopperString 2032, connecting Mt Isa to the grid, and $7 billion towards state-owned pumped hydro projects.

2. Renewable Energy Portfolio: A 2.3GW portfolio of renewable energy projects in central Queensland.

These investments are expected to support businesses by providing a more stable and sustainable energy infrastructure, potentially lowering long-term operational costs and promoting environmentally friendly practices.

Public servants: Job security and changes

The state government plans to save $3 billion from public servants over four years, up to 2027-28. Despite this, Treasurer Cameron Dick has assured that no public servant will lose their job. However, there will be changes to perks and working arrangements:

• Business Travel and Consultants: Cuts will be made to business travel and external consultant budgets.
• Remote Work: Public servants may be encouraged to work from home or outside the Brisbane CBD.
• Advertising Cuts: No new advertising contracts will be made after August, except for public safety or job ads.

These measures aim to streamline public sector expenses while maintaining job security.

Managing migration: Turning growth into assets

Over the past four years, more than 134,700 people have moved to Queensland, leading to significant population growth and associated challenges. Much of this increase is attributed to international migration, particularly in 2023. The budget assumes a reduction in migration intake, which is expected to ease housing market pressures and help manage the state's resources more effectively.

Current realities: Financial stress and environmental challenges

The Queensland Council of Social Service (QCOSS) Living Affordability in Queensland 2023 report highlights ongoing financial stress among low-income households. Essential expenses such as housing, food, electricity, transport, health, and internet services consume a significant portion of their income, leaving little room for financial flexibility.

Additionally, high international coal and gas prices, coupled with rolling breakdowns at aging power stations, are driving up energy costs. Frequent and extreme weather events, fuelled by climate change, further exacerbate the cost of living. The budget’s $1.48 billion package for electricity bill support and investment in renewable energy generation and storage aims to address these issues both in the short and long term.

Looking ahead: Long-term solutions

While the 2024 budget introduces several immediate relief measures, it also lays the groundwork for sustainable, long-term solutions. The transition to a green energy system is a pivotal step towards a decarbonized economy. Continued investment in renewable energy and infrastructure projects not only addresses current energy challenges but also positions Queensland as a leader in environmental sustainability.

However, the success of these initiatives depends on effective implementation and ongoing support. The government must ensure that relief measures extend beyond short-term fixes and contribute to lasting improvements in the cost of living and overall economic stability.

The Queensland Budget 2024 presents a multifaceted approach to addressing economic challenges and supporting both individuals and businesses. From commuter benefits to significant investments in green energy and measures to streamline public sector expenses, the budget aims to create a more resilient and sustainable future. As Queensland navigates post-pandemic recovery and rising living costs, these initiatives offer a blend of immediate relief and long-term solutions to foster economic stability and growth.