QUEENSLAND BUDGET 2020-21

BUDGET HIGHLIGHTS

budget.qld.gov.au

Queensland Budget 2020–21 1 MESSAGE FROM BUDGET 2020–21 THE TREASURER AT A GLANCE The Honourable Cameron Dick MP

Jobs supported by infrastructure investment in 2020–21 46,000

Total infrastructure program over four years $56B

Percentage of capital This Budget is focused on spend outside of delivering our promises made to Greater Brisbane 58% the people of Queensland. Total spend on Before, and during, the 2020 State Election campaign road and transport we made more than 1,000 commitments. The hard infrastructure in work in delivering those commitments starts with $6.3B this Budget. 2020–21 It follows the path clearly outlined in our COVID-19 Fiscal and Economic Review and in the Palaszczuk COVID-19 economic Government’s Economic Recovery Plan which focused stimulus measures on protecting our health; creating jobs; and working to date together. $7B The efforts of Queenslanders in containing the health impacts of the COVID-19 pandemic have seen the State recover faster economically than others and this Budget Education and outlines the continued steps we will be taking on that training in 2020–21 recovery. $17.5B This Budget will deliver on the Palaszczuk Labor Government’s clearly defined priorities: safeguarding Queenslanders’ health; supporting jobs; backing small business; Making it for Queensland by supporting Health in 2020–21 Queensland manufacturers; building Queensland’s $21.8B infrastructure; growing our regions; investing in skills; backing frontline services; and protecting our precious environment. Concessions More than anything else, this Budget has a single overarching objective – creating more Queensland jobs. and lowering the cost of living $6.3B 2020 has been a testing time for workers, families and businesses and this Budget outlines the Government’s latest investments and initiatives as we continue to Unite and Recover. Building trains in Queensland over 10 years $1B

Social housing Cameron Dick MP improvements Treasurer in 2020–21 $526.2M Minister for Investment

2 budget.qld.gov.au QUEENSLAND’S ECONOMIC RECOVERY

Globally, almost 1.5 million people have died from COVID-19. In Queensland hard-working health professionals, frontline agencies – and crucially Queenslanders following medical advice – have seen the state manage the health impacts exceptionally well. However, COVID-19 will impact the economy long into the future.

The 2020–21 Budget continues to REBOUNDING FROM deliver measures for the ongoing health COVID-19 IMPACTS response to COVID-19 and also supports FOCUSING ON the economic recovery outlined in the The coronavirus (COVID-19) pandemic CORE TASKS Queensland Government’s Unite and has delivered an unprecedented Recover Economic Recovery Plan. shock to the global economy, leading to substantial business closures, Unite and Recover highlighted a package To support Queensland’s COVID-19 job losses and declines in economic of more than $7 billion to safeguard economic recovery, the government activity, industrial production and trade our health and protect jobs, including is implementing a savings and debt across the world. The data indicate that reducing business costs through payroll plan to deliver savings of $3 billion economic outcomes are more favourable tax reductions and other tax relief over four years to 2023–24. where health outcomes are better. measures, and accelerating projects To date, we have achieved to unlock development and increase The pandemic and related restrictions 47 per cent or $352.2 million of economic activity. led to a record 5.9 per cent fall our savings target for 2020–21 in domestic economic activity in Building on this support, the government through a range of measures. Queensland in the June quarter of has committed a significant package of Savings will continue to be 2020. However, this result is relatively election commitments totalling achieved by focusing on core favourable compared with the 7.4 per $4.3 billion over four years. tasks, ensuring government resources are directed to where cent fall in national domestic activity. This Budget is focused on getting they are needed most. Importantly, Queensland’s success in our economy moving sooner. Priorities containing the spread of the virus means include: Six workstreams have been established to progress savings the June quarter is now expected to be the  creating jobs lowest point in the COVID-19 economic opportunities under the plan,  backing small businesses to support cycle, rather than the September quarter with a focus on government jobs and communities across the state as previously anticipated. The substantial advertising, accommodation, and ongoing relaxation of restrictions, as  increasing investment in data and ICT, workforce, structural well as the income support and stimulus manufacturing including $1 billion to reform opportunities and agency provided across all levels of government, make trains in Queensland again functional reviews. drove a strong rebound in domestic  driving the largest infrastructure The plan reinforces the need activity in the September quarter. program in over a decade of to sustain effective frontline Domestic and external conditions have $14.8 billion in 2020–21 services by limiting secondments of frontline workers to back-office continued to evolve since the COVID-19  growing our regions and supporting roles and creating opportunities Fiscal and Economic Review (C19-FER) key industries including tourism, for tasks to be reallocated to released in September but currently agriculture and mining appear to be on different trajectories. frontline roles.  protecting the environment Many indicators of Queensland’s The plan also strengthens  providing more Queenslanders with domestic economy have continued to oversight of non-frontline access to the skills and training they recruitment, a natural reduction improve, but the resurgence of COVID-19 need for careers cases globally, weaker trading partner of senior executive service growth, and increasing trade and  enhancing frontline services roles and greater utilisation of existing government buildings to geopolitical tensions mean the  delivering lower debt than New South global outlook has weakened further Wales and Victoria. encourage public servants to work and remains the key risk to the closer to home. State’s economic outlook.

Queensland Budget 2020–21 3 SAFEGUARDING $21.8B for health OUR HEALTH in 2020–21

Throughout 2020 the government’s number one priority has been – and continues to be – safeguarding the health of all Queenslanders and building community resilience by ensuring we are ready for any future coronavirus outbreaks. This commitment continues in this Budget with total health funding of $21.8 billion this fi nancial year.

$360.5 million in 2020–21 to continue BUILDING BETTER the support for Queensland Health, HEALTH FACILITIES Queensland Fire and Emergency Services Satellite and Queensland Police Service's As part of the government’s ongoing responses to COVID-19. This builds on the hospitals commitment to support the delivery of government’s initial $1.2 billion COVID health services, $1.6 billion has been response plan for services including fever allocated in the 2020–21 Budget for The Budget provides $265 million clinics, PPE, contract tracing, 13 HEALTH infrastructure projects throughout to build seven satellite hospitals to services, costs of aeromedical services the state. Among the projects are: deliver alternative models of care and the facilitation of quarantine in across South East Queensland, $979 million to enhance capacity and government arranged accommodation. A reducing the burden on our acute services at three major public hospitals further $3 million has been allocated to hospitals and allowing them to in the South East Queensland growth continue psychosocial telephone support safely manage patient care. corridor involving the redevelopment of for people in mandatory hotel quarantine. the Caboolture Hospital to increase its The satellite hospitals will over three years will be capacity by 130 beds; expansion of the $100 million also provide virtual health invested to employ 464 additional Logan Hospital to deliver an additional opportunities including a range 206 beds and refurbish the maternity wellbeing professionals in Queensland of rapid access consults, care ward; staged redevelopment of the state schools and to trial the placement of coordination, remote monitoring Ipswich Hospital including new mental general practitioners in up to 20 schools. and patient literacy services. health facilities. $171 million has been committed for The facilities are being planned $86.2 million for a Nambour a Queensland Health palliative care for Bribie Island, Caboolture, Hospital redevelopment. strategy funding package through to Redlands, Pine Rivers, Ipswich, 2025–26. Brisbane southside and the $50.5 million for a Redland southern Gold Coast. Hospital parking upgrade. $77.4 million has been allocated in 2020–21 to deliver expanded access $45.5 million towards a Princess Planning for delivery of the to specialist outpatient services. Since Alexandra Hospital cladding project. hospitals is underway, with final 2015, over $500 million will have been location and health services $36.8 million for a Redcliff e Hospital invested to enable Queenslanders timely to be determined by each local parking upgrade. access to specialist outpatient services. health and hospital service $70 million for a Cairns $61.9 million to deliver the Shifting in consultation with the local Hospital mental health unit. Minds Flagship range of suicide community. $46 million for a Thursday prevention initiatives including a Island health facility upgrade. Crisis System Reform project for Continuation of projects at the Roma crisis service delivery. Hospital ($116.6 million), Blackall Continued delivery of Queensland Hospital ($20.1 million), Torres Strait Health’s activities through the Action Primary Health Care Centre on Ice plan to address use and harms ($16.9 million) and the Cairns South caused by crystal methamphetamine Health Precinct ($14.9 million) and including support for families, Aboriginal Atherton Hospital ($74.8 million). and Torres Strait Islander communities Funds have also been allocated for a and health and related workforces. 40-bed mental health unit at Gold Coast $5 million over two years for the delivery University Hospital, new ward fi t-out of allied health and wellbeing facilities at QEII Hospital, Redland and Cairns at the Clem Jones Centre in Brisbane. Hospital expansions and mental health facilities at Rockhampton Hospital.

4 budget.qld.gov.au INVESTING IN FRONTLINE SERVICES

The Palaszczuk Government continues to focus on frontline service delivery by ensuring Queenslanders, no matter where they live, can receive the support they need at the time they need it. This Budget continues that focus with investments in more nurses, doctors, other health professionals, teachers, community service staff , fi refi ghters, paramedics and police personnel.

Funding of $7.2 million over two years Over the next five years an additional PUBLIC SECTOR has been allocated for a new fire station 2,025 police personnel will be hired, FRONTLINE at Mount Cotton. and 25 new mobile police beat vans will be established. More than 90 per cent of all Queensland Funding up to $36 million over four public sector employees are working years is provided to Surf Life Saving An extra 357 firefighters will be in frontline or frontline support roles Queensland to support its crucial efforts employed over the next five years to working closely with local communities in safeguarding Queenslanders and the help communities prevent, prepare for, across the state. state’s visitors. The funding package respond to and recover from the impact includes support for operational of fires and other emergencies. The Budget will support funding efforts and $6 million for infrastructure for additional frontline health staff The acquisition of a Large Aerial Tanker projects. including 5,800 nurses, 1,500 doctors based in Bundaberg will also deliver and 1,700 allied health professionals $500,000 has been provided in the better bushfire fighting resources. through to 2024. Budget to undertake a feasibility Work will also continue on the analysis on the suitability of the The government will employ 6,190 new $15 million, 10-year commitment to former Townsville sports stadium to teachers and 1,139 new teacher aides the Government Wireless Network be a multi-agency emergency services over the next four years to support program that provides critical radio headquarters for North Queensland. learning outcomes across the state. communications to police, ambulance and firefighters to support public safety.

Supporting the frontline in Queensland’s health response

Funding in the Budget will support an additional 475 ambulance operatives through to 2024. In 2020–21, the Queensland Ambulance Service will invest $55.8 million in a series of infrastructure projects designed to provide our paramedics with improved operational facilities. This investment includes:  completing new ambulance stations at Urraween, Yarrabilba and Munruben; a new ambulance station and Local Ambulance Service Network offi ce at Drayton; and replacement stations at Kirwan and Mareeba  commencing planning for new or replacement stations at Ormeau, Ripley and Caloundra South  refurbishing of the Rockhampton ambulance station and operations centre  continuing planning for the redevelopment of the Southport ambulance station and Gold Coast operations centre and the Cairns ambulance station and operations centre  commissioning 135 new and replacement ambulance vehicles and continue the rollout of power assisted stretchers  investing in software development projects to enhance patient care and integrated service delivery. Queensland Budget 2020–21 5 BACKING SMALL BUSINESS

Small businesses are the backbone of the $500M FUND Queensland economy. This Budget continues to BACKS QLD support small businesses which represent more BUSINESSES than 97 per cent of all businesses in the state The $500 million Backing Queensland and employ around 42 per cent of all private Business Investment Fund will target sector workers. investments in businesses that:  are based in Queensland and will create Queensland-based jobs $140 million has been allocated to  have a proven product and defi ned BACKING help small businesses to boost their market opportunity but require competitiveness and resilience. BUSINESS signifi cant capital to aggressively This includes: Small businesses across the state build scale or grow market share  an initial $100 million Business have been among the hardest hit by  are relatively mature, well beyond Investment Fund for small and the economic impacts of COVID-19. In proof-of-concept and are profi table medium sized businesses that have response to the pandemic the Palaszczuk or approaching profi tability Government implemented a number of signifi cant growth potential  are seeking capital to expand or programs and initiatives to support small  $30 million including grants and restructure operations, enter new businesses, their employees and the small business support communities they serve. markets or fi nance signifi cant  funding for the newly established acquisition These programs included: Offi ce of the Queensland Small  have well-established and reputable Business Commissioner to provide  $1 billion in concessional jobs owners who are committed to information and advocacy for the support loans, interest free for growing the business from and state’s small business operators. 12 months, to support businesses to in Queensland. keep Queenslanders in work. More The government is supporting small The fund will be managed between than 6,900 Queensland businesses business by introducing a procurement Queensland Treasury and QIC. have drawn down loans from the target, with 25 per cent of all scheme supporting over 86,000 local government spend to go to small and jobs. Almost 90 per cent of businesses medium businesses. The Queensland accessing loans were small, having 20 Government's on-time payment program employees or fewer is improving payment practices and  substantial State Government tax timeframes. relief across the 2019–20 and The government is embedding a Buy 2020–21 years through payroll Queensland approach to procurement by tax refunds, payment waivers and providing advice, support, frameworks deferrals; exemptions for payroll and tools that enable government tax on JobKeeper payments; land agencies to pursue economic, tax relief, deferrals and payment environmental and social outcomes. extensions; and the deferral of gaming This includes increasing opportunities machine tax and health services levy for local suppliers, growing regional payments until June 2021 economies and embedding non-price  up to $196 million in Small Business considerations (e.g. social procurement Adaption Grants of up to $10,000 and local benefits) into government  $100 million in electricity bill relief procurement processes. for small businesses; along with More than $81.6 million has been $54.5 million to support the transport allocated over three years to reduce industry as well as support for Far irrigation water charges for the state’s North Queensland ports and related farmers and fruit and vegetable businesses. growing businesses.

6 budget.qld.gov.au INVESTING $17.5B for education IN SKILLS and training in 2020–21

Queensland’s future economic prosperity depends on having a skilled workforce. This Budget continues the Palaszczuk Government’s investment to ensure the current and future workforce has the highly skilled and adaptable employees needed to support economic growth in the decades ahead.

Investing almost $1 billion over four This Budget provides $200 million to SUPPORTING years for school upgrades through invest in the future skills requirements TEACHERS AND the Great Schools, Great Future of Queenslanders. This includes commitment, including $394.2 million additional funding of $83.4 million STUDENTS for new classrooms and administration for future skilling programs, including The Queensland Government will buildings, $235 million for new or $32.4 million over two years for the continue to support Queensland’s upgraded multi-purpose school TAFE Priority Skills Fund; $25 million for students and teachers by ensuring halls and performing arts centres, pre-apprenticeship support as well as state schools and training facilities $100 million for infrastructure renewal, funding for the development of a digital can meet enrolment demand and the $180 million for capital projects at professional workforce plan and a range requirements of the rapidly changing Catholic and Independent schools, of other skilling initiatives. learning environment. $45 million for shovel-ready school This investment also includes projects and $20 million for planning Funding in this Budget includes $100 million over three years to new schools. investment in new schools facilitated by upgrade TAFE campuses. the $1.7 billion Building Future Schools Continuation of $477 million in $21 million has also been provided Fund, which includes $346.2 million funding over five years (from 2019–20) to extend Free TAFE and Free for four new schools opening in 2022 for the Cooler Cleaner Schools Program apprenticeships to Queenslanders and 2023, completion of the Lee Street to air-condition state schools and aged under 25. This opportunity has Special School at Caboolture and land expand the Advancing Clean Energy already been available to Queenslanders acquisitions for future new schools. in Schools program. aged under 21, providing training This is in addition to the eight new $8 million has been provided over four opportunities to more than 24,000 schools that opened in 2020 and the years for the establishment of new young people. Extending that to under five new schools that will open in 2021, Homework Hubs in 120 Queensland 25s means another 37,000 young including the Brisbane South State state schools where children will be Queenslanders will be able to get Secondary College. supervised by teacher aides to alleviate world-class vocational training for pressure on parents. free in priority qualifications.

Working and learning from home

The year 2020 has thrown countless challenges at Queenslanders, including enforced remote working arrangements and learning practices due to the onset of the COVID-19 pandemic. Not only did millions of Queenslanders commence working from home and undertake home schooling activities, but the digital requirements and skills have also changed. Queensland will continue partnering with the Australian Government to deliver the JobTrainer Fund to prioritise no or low fee training places for jobseekers, school leavers and young people to support them into jobs as part of the economic recovery from the COVID-19 pandemic.

Queensland Budget 2020–21 7 BUILDING QUEENSLAND

Infrastructure investment will continue to support WORLD-CLASS Queensland’s economic recovery, grow the state’s CORRECTIONAL regions and underpin business-led growth. The PRECINCT capital program will directly support substantial Construction is expected to commence employment and economic activity across all during this Budget period on the $654 million expansion of the regions, with the $14.8 billion capital program in Southern Queensland Correctional 2020–21 estimated to support 46,000 jobs. Precinct near Gatton The 2020–21 Budget includes $110.2 million with building on upgrade, and the Yatala South (Exit the expansion expected to start BUILDING FOR 41) and Pimpama (Exit 49) interchange early in 2021. THE FUTURE upgrades. The M1 program of works is A number of major benefits will be complemented by the jointly funded The government’s capital works program achieved through the construction of $1.5 billion Coomera Connector (Stage in 2020–21 will deliver a wide range of a new 1,000-bed correctional centre, 1) project between Nerang and Coomera, projects across the state with around including the delivery of over 400 jobs to provide for a ‘second M1’. 58 per cent of the capital program and in the Lockyer Valley region with up 28,700 of the jobs supported being Among other major highway projects to 900 jobs supported during peak outside the Greater Brisbane area. ongoing are: periods of construction. In 2020–21, the government will  work on the $400 million Ipswich This new facility, with a therapeutic deliver a $6.3 billion investment in Motorway upgrade from Rocklea health-centred operating model, will transformative transport infrastructure. to Darra help address substance addiction Highlights of the 2020–21 transport  work on the $164 million Smithfi eld and mental health issues. Further, capital program include $1.5 billion to Bypass on the Captain Cook highway. it will enable Queensland Corrective continue construction work on Cross Services and Queensland Health to River Rail, and substantial ongoing $709.9 million in joint funding is provide rehabilitation and treatment investment to fund major upgrades allocated for the Gold Coast Light Rail in a world-class correctional facility. to the M1 Pacific Motorway and Stage 3A, to extend the line south to The new facility will ease overcrowding the Bruce Highway. Burleigh Heads. Work is continuing on across Queensland’s correctional the $550.8 million jointly funded North Construction of Cross River Rail services system and deliver a safer Coast Rail Line between Beerburrum environment for staff and the commenced in 2019 and is being and Nambour. delivered across three major works prison population. packages and multiple worksites. The Joint State and Australian Government new 10.2km rail line from Dutton Park funding of $244 million has been to Bowen Hills will increase network allocated for the Centenary Bridge capacity and support 7,700 full-time upgrade which will greatly improve traffic equivalent jobs and 450 apprenticeship movement to Brisbane’s west. and traineeship opportunities during The Budget also includes substantial construction. The project also includes ongoing investment in key infrastructure a series of new train stations and supporting the state’s delivery of upgrades to existing stations. enhanced justice and public safety The M1 Pacific Motorway is the services, including $178 million over state’s busiest major highway and three years from 2019–20 on additional plays an important role in connecting youth justice infrastructure. communities across South East In 2020–21 $526.2 million will be Queensland. The $3.4 billion M1 invested through capital purchases program of works, jointly funded and grants to construct new social by the Australian and Queensland housing dwellings, upgrade existing governments, includes major projects properties and provide housing services, such as the Varsity Lakes to Tugun including in Indigenous communities. upgrade, Eight Mile Plains to Daisy Hill

8 budget.qld.gov.au Strengthening Queensland's spine – the Bruce Highway

Connecting communities across almost 1,700  $662.5 million for upgrades between Caboolture- kilometres, the Bruce Highway is critical for ensuring Bribie Island Road and Steve Irwin Way freight, holiday travel and commuter traffi c is safe and  $514.3 million to construct bridges and approaches effi cient. The Queensland Government will continue on the Haughton River Floodplain to work with the Australian Government to deliver the Bruce Highway Upgrade Program, aimed at improving  $481 million for widening as part of the Cairns safety, fl ood resilience and capacity along its length. Southern Access Corridor Stage 3  $230 million for the Townsville Ring Road (Stage 5) The 2020–21 capital program incorporates several key projects on the Bruce Highway, supporting jobs across  $158 million for widening as part of Rockhampton the regions, including: Northern Access (Stage 1).  $1.1 billion for the Rockhampton Ring Road In addition, the Queensland Government has committed an additional in state funding towards a  $1 billion to construct Cooroy to Curra Section D $100 million $500 million funding injection for the Bruce Highway  $932.2 million for widening between Caloundra Road (subject to negotiation with the Australian Government), and Sunshine Motorway noting the Queensland Government’s priority for upgrades between Mackay and Proserpine, and between Gladstone and Rockhampton.

The government’s capital program Construction on the new $175 million Browne Park in Rockhampton, the home includes providing grants to councils 1,500 seat performing arts venue at of rugby league in Central Queensland, and non-government organisations to Brisbane South Bank will continue over will be expanded in stage one to support their work within communities the next two years. When completed the accommodate approximately 4,000 across Queensland. In total, the new theatre will provide the potential seats with $25 million in funding. government will provide $2.2 billion in for an additional 300,000 visitors to In Brisbane, the Ballymore Precinct will capital grants in 2020–21, including the Queensland Performing Arts undergo a major redevelopment with Centre each year. $180 million to all local governments a $15 million state contribution, to through the government’s $200 million support a range of rugby union programs COVID Works for Queensland program STADIUMS AND including the National Rugby Training to support jobs and provide economic Centre, women’s rugby and other local stimulus to local economies. SPORT FACILITIES sporting teams. $52.2 million will be invested in The government has committed to $20 million has been allocated over two 2020–21 to continue work on the funding new stadiums across the state years for the upgrade of the Sunshine $232 million channel capacity upgrade to improve patron and player facilities Coast Stadium, $43 million over three at the Port of Townsville. and support local jobs. years for local community sporting $4 million has been allocated for initial Harrup Park in Mackay will become a hub infrastructure, and work will continue on planning for a new Bribie Island Bridge. for marquee cricket and AFL events with the $35 million upgrade of the Gabba $10 million in state funding earmarked Stadium in Brisbane. for Stage One of the development.

Queensland Budget 2020–21 9 GROWING OUR REGIONS

With almost half of Queensland’s population living outside of Greater Brisbane, the Palaszczuk Government is strongly focused on delivering the necessary support to enable our regions to grow and economically prosper.

In 2020–21 funds have been allocated Funds have also been allocated to SUPPORTING for the establishment of the Office of support the CopperString 2.0 electricity THE REGIONS Rural and Remote Health to improve transmission project. This has the health outcomes for Queenslanders. potential to fast track resource operations The 2020–21 Budget contains a wide in the North West Minerals Province and range of programs and initiatives As the most disaster-impacted state in support renewable energy generation. developed to support the regions. Australia, it remains imperative to assist Among these are: local communities prepare for natural disaster. $10.5 million will be delivered An additional $200 million for the Works WATER FOR in 2020–21 as part of the five-year, for Queensland program to support jointly funded $65 million Queensland THE FUTURE local governments outside South East Resilience and Risk Reduction Fund. Queensland. The latest investment takes Having a clean, safe and affordable total funding to $800 million in Works $30 million to support the upgrade water supply is crucial for communities for Queensland and provides councils to infrastructure at the Ports North- and businesses across the state. This with job-creating maintenance and minor owned Cairns Marine Precinct Budget outlines a number of projects infrastructure projects relating to assets and fund a business case for the supporting these outcomes and include: owned or controlled by local governments. future development of the precinct.  Government-owned water businesses Construction of two new wharves In addition, $180 million in 2020–21 Sunwater and Seqwater have and additional early works to upgrade has been fast-tracked funding to support budgeted over $150 million for dam services are expected to expand job retention across the State during improvement projects in 2020–21. Cairns’ capacity to carry out in-water the impacts of COVID-19. Councils have These will ensure dams continue to maintenance on vessels used estimated that the program will support operate safely during extreme weather by the Australian Defence Force more than 4,600 jobs. and deliver signifi cant investment into and Border Force. the Queensland economy and support Also in the Far North is $6.8 million jobs. Construction in 2020–21 over two years for a new film production include works at the Ewen Maddock studio. Dam and Paradise Dam. The refurbished and expanded Cairns  $42.5 million over three years from Convention Centre is due to reopen for 2021–22 for the proposed $80 million business in February 2021 following Bundaberg fl ood levee to protect the a $176 million investment by the local community from widespread Queensland Government. inundation. $40 million has been committed to  The Queensland Government is support the proposed $175 million contributing $195 million to the Wellcamp entertainment precinct near Townville City Council toward Stage 2 Toowoomba while funds have been of the Haughton Pipeline which will allocated for the completion of the connect to earlier stages of the project $7.5 million Highfields to Toowoomba and ultimately improve water security bikeway. for the North Queensland region. $21 million over two years to revitalise  River-based works associated with Queensland’s coastal shipping industry the Rookwood Weir project west and create maritime jobs, including the of Rockhampton are expected to establishment of a new shipping service commence in April 2021. Once between Townsville and Brisbane. completed the weir will add up to 76,000 megalitres of extra water supply for the Central Queensland region.

10 budget.qld.gov.au SUPPORTING RENEWABLE ENERGY IN QUEENSLAND

Queensland’s publicly-owned clean energy generator, CleanCo, is set to build, own, and operate the $250 million 102.6 megawatt Karara Wind Farm in the Darling Downs. Karara will be part of the MacIntyre Wind Farm Precinct being developed by Acciona Australia, with a project value of around $2 billion. CleanCo is also supporting the larger precinct by agreeing to purchase a further 400 megawatts of renewable energy from Acciona. With CleanCo’s involvement, the precinct development will achieve a local spend on the Darling Downs of more than $500 million during construction, supporting 400 jobs and local businesses. The development will be progressively connected to the grid from 2022. Queensland’s own representing more than $8.5 billion in investment and government-owned transmission business, Powerlink, has supporting more than 7,000 jobs. already commenced working on the connection of the project The fund will complement the government’s $145 million to the national electricity grid, supporting a further 240 jobs. commitment to establish three Queensland Renewable Energy The Karara Wind Farm is one of a number of major renewable Zones – northern, central and southern. energy projects being built or in the planning stage across In these areas, the government will undertake strategic network Queensland. The renewable energy sector will be supported investments, streamline the development of new renewable further through a $500 million Renewable Energy Fund energy projects, and work to match industrial energy demand announced in September. Already Queensland has seen 44 with renewable energy to grow Queensland’s position as large-scale renewable energy projects commence operations, an investment destination and create more jobs as part of under construction or financially committed since 2015, Queensland’s COVID-19 road to recovery blueprint.

Backing tourism businesses

Tourism, events and arts businesses were among the fi rst sectors to feel the impacts of COVID-19. One of the State’s biggest tourism attractions and environmental wonders – the Great Barrier Reef – will benefi t from an additional $40 million worth of support. This includes $10 million for a Reef Assist Program and $6 million over four years for the GBR Island Arks project to deliver ecotourism in the region. A further $27.1 million has been allocated to support reef water quality activities. The latest reef funding builds on more than $400 million committed by the Palaszczuk Government since 2015. Additional support includes $5 million in grants to support regional tourism operators reliant on international tourism to redesign their businesses; $25 million in 2020–21 in the Growing Tourism Infrastructure Fund; $25 million in the Queensland Tourism Icons program; and $15 million in aviation industry support. The #GoodToGo promotional campaign will continue to underpin Queensland tourist operators including the Year of the Outback Tourism activities, while $7 million has been allocated to assist grow Indigenous tourism programs. $20 million over four years has been allocated for a Tourism Activation Fund, a further $20 million over four years will assist event attractions, while $15 million will establish a regional tourism organisation fund.

Queensland Budget 2020–21 11 MAKING IT FOR QUEENSLAND

Queensland’s manufacturers collectively contribute more than $20 billion to the Queensland economy per year supporting around 165,000 jobs. Encouraging the growth of the manufacturing sector in both traditional and new industries will support economic diversity and resilience – and create new jobs.

Brisbane. This project is expected Mackay to support the growth MANUFACTURING to create up to 139 jobs over 10 of local manufacturers and the jobs A ROAD TO RECOVERY years and aligns with the Queensland they create Biomedical 10-year Roadmap and As part of this Budget, the Palaszczuk  $10 million over four years to continue Action Plan Government will continue to support the development of Queensland’s Queensland’s manufacturing sector,  continuing support to Rheinmetall hydrogen industry. with a strong focus on attracting new Defence Australia’s $170 million businesses to the state. facility at Redbank. The facility will be a regional hub for design, build and HISTORIC AEROSPACE Enhancing Queensland’s manufacturing support for up to 500 military vehicles MANUFACTURING DEAL base will play a key role in the state’s in Australia and the Asia-Pacifi c, economic recovery from the impacts of creating around 450 Queensland A partnership with aerospace giant COVID-19. jobs and injecting $1 billion to the Boeing is set to deliver more high- Among the suite of programs included Queensland economy over 10 years skilled jobs, local supply opportunities and defence industry stimulus for in the State Budget are:  $40.5 million has been allocated Queensland.  establishing an Immersive Technology over four years to support the Making Hub to promote Queensland’s it in Queensland strategy to secure As part of the agreement Boeing will, for capabilities nationally and advanced manufacturing jobs and the first time, manufacture unmanned internationally, and assist local the skills needed for existing and planes outside of the United States. industry, corporate and government future industries. This includes a The development of the first military organisations to better understand and $15.5 million to boost the Made in aircraft to be designed, engineered and engage with immersive technologies Queensland grants program; and manufactured in Australia in more than 50 years supports the government’s  delivering programs to connect $16.5 million to drive development of advanced manufacturing skills long-standing commitment to advanced research and technology companies manufacturing. with corporates to grow value, adding through the creation of Manufacturing revenue and global routes to market Skills Queensland (as part of a The project reinforces Queensland’s $200 million investment in future status as a centre for defence industries  an agreement with Vaxxas to skilling programs). Two new and also underpins the government’s manufacture needle-free vaccine regional manufacturing hubs will be 10-year Roadmap and Action Plan for technology at a new facility in established on the Gold Coast and in Defence Industries. BUILDING TRAINS IN QUEENSLAND

For the first time in nearly a decade, Queensland trains will be built in Queensland. A $1 billion investment pipeline will support hundreds of workers in Maryborough, and expand the state’s manufacturing expertise, as part of a 10-year plan. The investment pipeline includes:  $600 million for 20 new Queensland trains and the infrastructure needed to build them in Maryborough, delivering jobs to the region  $1 million for a business case to replace carriages for the Westlander, Inlander and Spirit of the Outback long-distance services  continuing the $300 million, 10-year pipeline of manufacturing work to refurbish and maintain the existing Queensland Rail fl eet  continuing a $85 million investment for Maryborough workers to repair incompatible internationally built trains.

12 budget.qld.gov.au SUPPORTING QUEENSLANDERS

Since the fi rst impacts of COVID-19 on Queensland early in 2020, the Palaszczuk Government has provided billions of dollars of support to businesses, industry sectors, workers, home owners, renters and individuals.

SUPPORTING QUEENSLAND Supporting The 2020–21 Budget includes a wide Indigenous range of support measures to help Queenslanders continue to recover from communities the economic impacts of COVID-19. When COVID-19 struck the government $241 million has been allocated provided $400 million in utility bill relief in 2020–21 to improve housing for household electricity and water costs outcomes for Aboriginal and Torres to all Queenslanders; $24.7 million The government will continue to progress Strait Islander people across the in housing and homelessness support; the Build-to-Rent pilot program, for State. This includes: and paid sick leave for workers who test which agreement has been secured with  $18 million being provided in positive for COVID-19. two leading national builders to develop 2020–21 to support community From September 2020, a further the first two affordable housing projects members to access home $100 million is being provided to expected to create more than 400 jobs ownership opportunities households to reduce their electricity during construction. This is on top of the  $21.8 million being allocated bills, through the Government's $50 government’s $100 million commitment in 2020–21 to progress new asset ownership dividend payment. over two years to the Works for Tradies housing across 17 local councils. In addition to specific COVID-related program, delivering even more jobs and support, the Budget provides a range of social housing throughout the state. Implementing historic legislation to other programs to help Queenslanders. $3.5 million has been allocated enable legal recognition of Torres These include: towards the cost of establishing Strait Islander traditional child a Holocaust Museum. rearing practices. The legislation  $166.6 million to continue to will help remove identification implement the Supporting Families Additional funding of $6 million over barriers to participation in Changing Futures reforms with sector four years will be provided to support important areas such as education, and community stakeholders to build the prevention of domestic and family health and housing. a proactive family support system that violence in vulnerable populations, and helps prevent escalation to the child $5 million will be allocated to programs $9.3 million over four years protection system raising awareness and assisting victims has been provided to build the of elder abuse. Aboriginal and Torres Strait  $10 million over four years to support Islander community sector to the Queensland Government strategy support implementation of the new for Australia’s military veterans, $6.3 BILLION National Agreement on Closing including employment assistance, the Gap and improve outcomes for infrastructure funding, legal help, CONCESSIONS Indigenous Queenslanders. homelessness support and a range The Queensland Government will provide of other services. Continue work on the $9.9 million, an estimated $6.3 billion in 2020–21 four-year program to improve Additional funding of $2.6 million in in targeted discounts, fee waivers, the operation and management 2020–21 to continue the provision rebates, and subsidies to support of drinking water supplies in of services to support people with Queenslanders. These concessions Indigenous communities. disabilities, including funding All will reduce costs of living including for $5.7 million over four years has Abilities Queensland, management transport, electricity and water costs. been allocated for the On Country of complaints and investigations, Concessions will also provide significant program to give young Indigenous and approval for guide, hearing and support for individuals, households and people a range of life skills. assistance dogs, and National businesses across both 2019–20 and Disability Insurance Scheme 2020–21 as part of the government’s performance monitoring. response to COVID-19.

Queensland Budget 2020–21 13 ECONOMIC OVERVIEW

The COVID-19 pandemic has delivered an unprecedented The substantial and ongoing relaxation of restrictions across shock to the global economy, with data indicating that the state, as well as the substantial income support and economic outcomes are more favourable where health stimulus provided across all levels of government, led to a outcomes are better. strong rebound in domestic activity in the September quarter. The pandemic and related restrictions led to a record 5.9% Queensland’s Gross State Product (GSP) is still forecast to fall in domestic economic activity in Queensland in June quarter return to growth of ¼% in 2020–21, unchanged from the of 2020. C19-FER forecast. However, this was less than the 7.4% fall recorded in national Economic growth is then expected to strengthen to 3½% in domestic activity, and less than the declines in New South 2021–22, with ongoing solid growth of around 2¾% in the Wales (down 8.6%) and Victoria (down 8.5%). later years of the forward estimates. Importantly, Queensland’s success in containing the spread of the virus means the June quarter is now expected to be the lowest point in the COVID-19 economic cycle.

QUEENSLAND REAL QUEENSLAND'S LABOUR RETAIL TURNOVER MARKET FORECASTS The volume of retail turnover in Queensland has rebounded There has been a rapid and strong recovery in the Queensland a record 8.9% in September quarter 2020, to be 11% higher labour market with employment surging by 205,900 people over the year, underpinned by significant government income between May and October as restrictions were unwound. support measures and the gradual easing of virus restrictions Queensland’s labour market is forecast to continue to recover, since May. in line with the ongoing strengthening of domestic economic activity. The state's unemployment rate is now expected to have peaked at 7.9% in September quarter 2020, lower than the 9% forecast for the December quarter at C19-FER.

 Quarterly Annual . Employment (lhs)  Unemployment rate (rhs)  .  

 .

 %  % change .

 persons Million   .

- Sep- Sep- Sep- Sep- Sep- Sep- .  Jun- Jun- Jun- Jun- Jun- Jun- Jun- Jun-

14 budget.qld.gov.au FISCAL OUTLOOK

The 2020-21 Budget is focused on ensuring the health of The government is focused on economic recovery and will Queenslanders through this pandemic as well as laying the deliver a growing infrastructure investment program. The foundations for our economic recovery. 2020–21 Budget commits to a four-year capital program of $56.031 billion. The government’s capital program supports The government’s policy response to COVID-19, as well as economic growth across Queensland and provides long-term election commitments to support economic recovery over employment opportunities. the longer term, have increased General Government Sector expenses across 2019–20 to 2023–24. In order to provide support for the economic recovery and in the face of falls in key revenues, government borrowing will rise The pandemic has led to sharp falls in key revenues. The in the near term. While borrowings will increase, Queensland’s fall in revenues, and the necessary increase in expenditure General Government Sector debt levels will remain lower than to respond to the crisis, have had a substantial impact on those of New South Wales and Victoria, both in absolute terms Queensland’s fiscal position. However, this impact will be and as a proportion of revenue. temporary. Total expenses are projected to grow at an average annual rate of 1.6% over the four years to 2023–24. From To better position the government in an environment of record- 2021–22, revenues are forecast to grow at a faster rate than low interest rates, Treasury is actively reducing refinancing expenses. and interest rate risk by extending the duration of its debt maturities. General Government Sector interest expenses have While the pandemic has resulted in a deterioration of the fallen from a peak of $2.3 billion in 2014–15 to $1.5 billion in government’s fiscal position, a strong response to the 2019–20, while the yields on Queensland Government bonds pandemic was necessary, and Queensland was fortunate to are comparable to those of our AAA-rated state peers. enter this crisis in a robust fiscal position. Through consecutive pre-crisis State Budgets, the government had delivered a series of operating surpluses and debt reductions.

2020–21 2020–21 REVENUE EXPENSES

Environmental protection, Dividends and tax recreation and equivalents .% Other revenue .% Transport culture .% .% Interest income .% State taxation revenue .% Public order Sales of goods Health and services .% and safety .% .%

Economic services .%

Social protection, housing and Other services Grants revenue other community .8% .% services .% Education %

Queensland Budget 2020–21 15 QUEENSLAND BUDGET 2020-21

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