Gift that keeps giving: Coal royalties to fund more cost-of-living measures
Some Queenslanders will receive further cost-of-living relief in 2024 fuelled by coal royalties that have sparkemarginal growth in the state’s economy.
Treasurer Cameron Dick handed down his mid-year budget review on Wednesday, tipping the economy to grow by three per cent over the next two years.
A small net operating deficit of $138 million is forecast for 2023/24, a $2.044 billion improvement on the deficit projected in the budget.
Coal royalties have been the backbone of the stateās post-pandemic economy, and are expected to boost revenue by $9.4 billion over the first five years.
Since being adopted in July 2022, additional royalty revenue from coal has pumped around $5.8 billion into the economy.
Mr Dick said the budget is effectively in balance on the back of a $4.3 billion surplus in 2021/22 and a record $13.9 billion surplus in 2022/23.
āThe strength of our balance sheet enables us to deliver more cost of living relief for Queenslanders,ā Mr Dick told reporters on Wednesday.
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āThe No.1 priority of the government is to make sure we deliver as much cost of living relief to Queensland families and businesses as we can afford.ā
The government outlined $8.224 billion in concessions in Juneās budget and will unveil further measures to ease cost-of-living pressures on Queenslanders.
Registration fees for motor vehicles will be frozen for one year from July 1, 2024 and public transport fees are also set for a 12-month freeze from January 1.
For example, a commuter from the Gold Coast to Brisbane will save more than $210 a year on public transport, Mr Dick said.
Free kindergarten for families will begin in 2024 and funding for the First Home Owners grant has been doubled to $30,000 until June 2025.
The government has also provided $1.483 billion in electricity rebates to Queenslanders, with most households receiving $550 towards their energy bills and vulnerable households receiving $700.
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āThese changes are not as big as the electricity bill rate rebates, but every dollar you donāt have to spend at a time like this is very important,ā Mr Dick said.
āAnd the strength of our budget allows us to give this cost of living relief back to Queenslanders.ā
General government sector net debt is estimated at $14.676 billion by June 30, 2024, which is $1.514 billion lower than previously projected in the 2023/24 budget in June.
General government sector revenue is estimated to be $3.7 billion higher than previous budget estimations
Queensland household spending growth is expected to slow in 2023/24 due to increased lending rates and cost-of-living pressures.
But household consumption growth is expected to bounce back slightly in 2024/25 due to a forecasted ease on inflationary pressures.
Queensland coal exports are forecast to grow five per cent in 2023/24 and a further 8.25 per cent in 2024/25.
Total key state revenues in 2023/24 are estimated to be $4.248 billion lower than in 2022/23.
However, it is $4.336 billion higher than estimated at the time of the 2023/24 Queensland budget, due to revisions to coal and petrol royalties and higher-than-expected global metallurgical coal and oil prices.
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