The 2025–26 Queensland Budget, “The Foundations for a Fresh Start”, marks a significant policy reset under the new Crisafulli Government, balancing immediate household relief with long-term structural investments.

Economic analysis

Against a backdrop of mounting public concern around cost-of-living pressures, housing shortages, strained healthcare services, and rising community safety risks, the Budget responds with expansive measures designed to stabilise, restore and stimulate.

Key commitments include a $1,300 universal electricity rebate for households, the abolition of stamp duty for first home buyers on new builds, and record outlays across health ($29.4 billion), housing ($21.9 billion), infrastructure ($33.1 billion), and education. These initiatives are intended not only to deliver short-term relief but to lay the foundations for a more liveable, equitable, and economically resilient Queensland over the next decade.

However, the Budget’s scale and ambition raise critical questions around feasibility, particularly in the context of state debt and revenue volatility. While the government frames the Budget as “measured” and respectful of public money, the magnitude of capital and operating commitments—especially in health, infrastructure, and housing—implies an acceleration in borrowing unless offset by strong economic growth or new revenue sources. The government’s stated aim of “budget repair over time” suggests a phased approach, but its credibility will ultimately depend on execution discipline and cost containment.

Economically, the Budget offers a mix of short-term stimulus and long-term capacity building. Immediate household relief—electricity rebates, education and sport vouchers, and housing support—should help ease financial pressure and boost household spending, particularly among low- to middle-income groups. Over the medium to long term, large-scale investment in infrastructure (rail upgrades, Bruce Highway enhancements, and new bridge connections) and social services should support job creation, lift productivity, and improve Queensland’s attractiveness as a place to live, work, and do business. The housing measures, if delivered efficiently, could ease rental market pressures and activate the construction sector—a key employer in the state.

Nonetheless, risks remain. Any deterioration in the broader economic outlook—whether due to global uncertainty, slowing population growth, or escalating project costs—could constrain the government’s capacity to maintain service delivery while repairing the budget. Cost overruns, supply chain issues, or delays in key infrastructure projects could also diminish the return on investment and limit the Budget’s effectiveness. In this sense, the Budget’s success hinges not just on funding commitments, but on disciplined project execution and ongoing economic resilience. In summary, the 2025–26 Queensland Budget represents a bold attempt to reset the policy agenda through a combination of relief and reform. It prioritises the everyday pressures facing Queensland households while laying groundwork for systemic improvements in health, housing, education, and infrastructure. Yet its real impact will depend on the government’s ability to deliver on promises without compromising fiscal sustainability.

 KEY AREAS 

Extending the trainee and apprentice payroll tax rebate for another 12 months

The 50% payroll tax rebate for wages paid to apprentices and trainees will be extended until 30 June 2026. In addition to generally exempting apprentice and trainee wages from payroll tax, this measure also provides an additional payroll tax concession for businesses with annual Australian taxable wages of $1.3 million and above who employ trainees and apprentices.

The Budget estimates that extending this rebate will provide eligible businesses with a total tax relief of $58.1 million in FY26.

Streamlining of ex gratia relief for land tax foreign surcharge and additional foreign acquirer duty to support investment and housing supply

The government has committed to streamlining and simplifying the ex gratia relief process for additional foreign acquirer duty and the land tax foreign surcharge. Ex gratia relief is available to foreign entities that are Australian based and where their contribution to residential housing development or the local economy and community meets certain thresholds.

Administrative changes to improve application processing will provide eligible applicants, particularly property developers who contribute to residential housing supply, with greater certainty and timely consideration, and has a secondary aim to increase housing supply and affordability.

The government will work with industry, through the newly re-established Property Consultative Committee, to identify and implement appropriate change to ex gratia criteria that will support new housing development and improve Queensland’s position as a welcoming destination for investment. Details will be finalised before the end of 2025.

The capital program is forecast to total $116.8 billion over 4 years to 2028-29. Key areas of focus in the forward estimates period and over the medium term include:

  • the Hospital Rescue Plan
  • providing the transport infrastructure to keep the state moving and the economy growing
  • delivering on the Qld government’s commitment to the Brisbane 2032 Olympic and Paralympic Games - $4.7 billion allocated to delivery plan.
  • supporting sustainable delivery of Queensland’s Housing Investment Pipeline.

This Budget provides Queensland Health with a record operating budget of $29.4 billion for the 2025-26 year (a 10.2% increase from the previous year).

This uplift will support significant initiatives across the health system, including:

  • ambulance ramping, $1.7 billion allocated to directly target pain points that have eroded public trust
  • hiring more frontline health workers across the state
  • addressing pressures on emergency departments and elective surgery wait times, $1.8 million allocated to stabilising surgery waitlists.
  • The budget will deliver 3 new hospitals, a new Queensland Cancer Centre, a new cardiac hybrid theatre in Rockhampton and 10 major hospital expansions, resulting in 2,600 additional hospital beds.

The government has committed to Making Queensland Safer, with this Budget supporting an increase in police numbers and police resources with a commitment to deliver 1,600 police recruits by 2028.

The Budget sets out funding of $290.3 million over 5 years for new and upgraded police stations and facilities, as well as an additional $148 million for frontline police essential equipment. The government has also committed $100 million to airborne law enforcement in Cairns, Townsville, the Sunshine Coast and the Moreton Bay region.

The government has introduced a new Small and Family Business First Action statement, which is backed by an investment of over $130 million.

The Action Statement has a clear focus on reducing the costs of compliance for small and family businesses by streamlining government services and innovation. This includes establishing a new dedicated $10.3 million Small Business Concierge service to streamline support and improve the ease of accessing government services for small businesses, as well as $16.8 million for the Small Business Support Network that provides financial counselling and coaching.

The government has recently established a Housing Ministerial Taskforce Cabinet Committee, to oversee actions that drive supply and provide homes for more Queenslanders, sooner.

Under the Securing our Housing Foundations Plan, the government will deliver one million new homes by 2044, including an additional 52,500 social and community housing dwellings.

Key initiatives implemented and announced by the government include:

  • Investing $165 million into a new “Boost to Buy” scheme which commences this year. Boost to Buy will close the deposit gap for eligible Queensland first home buyers. This is applicable to both new and existing homes.
  • Since 1 May 2025, eligible first home buyers purchasing or building a new home do not have to pay transfer duty. Legislative amendments have also come into effect to allow transfer duty concession recipients to rent out part of their property during the first year of occupancy without having to repay the concession.
  • The government has extended the $30,000 First home owner grant (“FHOG”) for a further 12 months to 30 June 2026. This will help more first home buyers unlock their first home all while driving increased supply to support broader affordability.
  • The government is also committed to increasing its investment in the fast tracking of new housing developments (this will be achieved by directly working with the local councils), by providing a $2 million fund for essential infrastructure such as water supply, sewerage, stormwater management, power, and transportation.
  • The government is also delivering increased investment of nearly $2 billion over 4 years to support increased delivery of social and community housing, including youth, domestic and family violence shelters.

The government is developing a five-year Energy Roadmap to deliver more affordable, reliable and sustainable energy to Queenslanders.

The Roadmap is to be released later in 2025, and is backed by over $5 billion in investments across the energy chain supply from Queensland’s state-owned energy businesses.

  • Over $100 million to be invested at the Meandu and Kogan Creek Mines in 2025-26
  • $479 million is allocated to continue the development of the 400 MW Brigalow Gas Peaker to be located near Chinchilla.
  • Efforts will be made to continue work on the proposed 114 MW Lockyer Energy Project near Gatton in Southern Queensland, and a new gas turbine at Swanbank will be investigated.

Starting 1 July 2025, the Queensland government will establish a new consulting services unit within the Queensland Treasury Corporation (“QTC”). This initiative, backed by a $15 million investment over two years, aims to provide expert advisory services to government departments and agencies at significantly lower rates than those charged by private sector consultants. The move is designed to enhance value for money, build internal capability, and reduce reliance on external consultancy firms.

Shadow Treasurer David Janetzki revealed that the Queensland government was on track to spend $4.5 billion on external consultants in the 2024-25 financial year, following a 20% annual growth trend. However, this projected figure has already been reduced to $4 billion, indicating the government’s early efforts to reduce external consulting expenditure.

The 2025–26 Queensland Budget is committing to new cost of living relief initiatives. This will include:

  • Increasing the Electricity Maintenance Guarantee to $1.6 billion to maintain generation assets and put downward pressure on power bills.
  • $37.5 million for free health checks for kids in kindy.
  • Ongoing commitment to 50 cent public transport fares.
  • $26.3 million for the Supercharged Solar for Renters program to reduce power bills for renters.
  • Restoring indexation to the Electricity Rebate Scheme for vulnerable households – providing an uplift in support for more than 600,000 Queensland households.
  • $200 Play On! Voucher Program to help reduce the cost of participation in sport
  • $100 Back to School Boost Vouchers for primary school students to help cover the cost of school essentials every year

Outside of huge investment into housing, health and infrastructure as a result of the Olympic games, some key initiatives for Queensland companies and innovators:

  • Increased funding of $117.8 million over 4 years to help natural resource management groups protect Queensland's incredible wildlife and crucial areas of biodiversity.
  • Providing additional funding of $79.1 million over 3 years to facilitate pathways to export opportunities and enable reshoring and onshoring by Queensland manufacturers, enhancing manufacturing sovereignty, encouraging investment and addressing ongoing disruptions to supply chains. This includes $15 million from the election commitment to increase the Made in Queensland Grant Program.
  • Additional funding of $4.6 million in 2025-26 to accelerate mineral exploration through investment in geoscience activities and data technologies to provide industry ready data.
  • Additional funding of $30 million over 4 years to kickstart Queensland's first agriculture innovation fund, designed to promote new technologies and practices by backing Queensland-first projects to future-proof the industry and boost farming productivity.
  • Funding of $180.6 million over 4 years for the Sovereign Industry Development Fund which consolidates industry programs into a single whole-of-state industry development fund focusing on delivering commitments across priority areas such as defence, biofuels and biomedical industries.
  • Additional funding of $80 million over 4 years and $20 million per annum ongoing, to empower social enterprises to improve the lives of Queenslanders who need it most.
Tax Revenue Category2024–25 Est. Actual ($m)2025–26 Forecast ($m)
Payroll tax7,3647,898
Transfer duty6,8667,175
Land tax2,4652,807
Other duties (vehicle registration duty, insurance duty, etc.)2,5822,714
Motor vehicle registration2,0812,525
Gambling taxes and levies2,1792,278
Other taxes (emergency services levy, waste levy, etc.)1,4791,510
Total revenue25,01626,907

Queensland’s GST revenue in 2024-25 is expected to be $366 million lower (1.9%) than in 2023-24.

GST revenue is expected to fall by a further $2.3 billion (12.1%) to $16.625 billion in 2025-26.

  • This is the largest reduction across all jurisdictions since the introduction of GST in 2000.

GST revenue is expected to recover from 2026-27 as the exceptionally high royalty revenues in Queensland in previous years rolls out of the 3-year assessment period. The revised treatment to include very large NSW and Victorian COVID-19 related expenses, which suppresses Queensland’s GST share in 2025-26, also drops out of the assessment period from 2026-27 onwards.

The Queensland State Budget 2025-26 was delivered by the Queensland (Liberal National) Treasurer, the Hon David Janetzki MP on the 24th June 2025.

The Revenue and Other Legislation Amendment Bill 2025 (Qld) was introduced into Queensland Parliament with the Queensland Budget 2025-26.

The Queensland State Budget included the following revenue measures and benefits.

Proposed changes to the first home owner grant - Queensland Revenue Office

 

 ADDITIONAL INFORMATION 

MEDIA STATEMENT: Delivering the great Australian dream for more Queenslanders - Ministerial Media Statements

FOR MORE INFORMATION

If you would like to discuss how the changes will impact you or your business, please contact our experts, Devika Shivadekar and Mira Brewster

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