Jessica Fox & Holly Bailey on sport, leadership, and redefining 'playing like a girl'. Listen now
The Treasurer forecasted a deficit of $8.6b for 2025-26, an increase from the $5.4b deficit expected. Deficits are forecasted throughout the forward estimates declining to $1.1b by 2028-29, and Queensland’s debt is projected to be over $200b by 2028-29.
While revenue is expected to be $91b in 2025-26, the State has indicated a fiscal rating downgrade may be on the cards with coal royalties declining by $5b in 2024-25 and Queensland’s GST revenue allocation decreasing by $2.3b this financial year, which is due to continue in the coming years.
Queensland’s Gross State Product is expected to grow to 2.5 per cent in 2024-25, increasing to 2.75 per cent in 2025-26. Labour conditions remain strong, with employment growth stabilising at 1.5 per cent in 2025-26 and the unemployment rate at 4 per cent in 2024-25, projected to increase slightly to 4.25 per cent in 2025-26.
The Revenue and Other Legislation Amendment Bill 2025 has been introduced into Parliament to address the possible inconsistencies in Commonwealth and Queensland State laws relating to foreign surcharge provisions in the Duties Act 2001 (Duties Act) and Land Tax Act 2010 (Land Tax Act). Currently, the government applies a surcharge to foreign persons who acquire or own land in Queensland and there is currently uncertainty as to whether these laws are inconsistent with Commonwealth laws and therefore constitutionally invalid.
In the interest of protecting revenue, the government has introduced amendments to the Duties Act and Land Tax Act to implement windfall duty and a windfall tax (collectively Windfall Taxes) that will only operate if there is a finding of unconstitutional inconsistency relating to foreign surcharges. If there is a court finding of inconsistency between Commonwealth and State law, and the taxpayer is subsequently entitled to a windfall of the foreign surcharge previously paid, the amendments to the Duties Act and Land Tax Act will operate to recover this refund by way of Windfall Taxes.
Importantly, a windfall tax liability will only be imposed as an alternative to a foreign surcharge and won’t be imposed in addition to any foreign surcharges.
The Queensland government has committed to reviewing the ex-gratia relief guidelines for Land Tax Foreign Surcharge (LTFS) and Additional Foreign Acquirer Duty (AFAD). The Property Consultative Committee has recently been re-established, and the government intends to work with the committee to identify and implement appropriate changes to the ex-gratia criteria for LTSF and AFAD. This review will focus on improving certainty of the ex-gratia guidelines and ensure the application process is streamlined with a view to providing timely decisions and supporting housing development projects
This measure is part of the government’s broader plan to increase housing supply and affordability.
As previously announced, the Queensland government are continuing with their efforts to support first home buyers. As of 1 May 2025, transfer duty was abolished for first home buyers purchasing newly built homes or vacant land to build a home on.
While directly benefiting first home buyers, the government’s intention is for this measure to increase new builds and ultimately the housing supply in Queensland to improve housing affordability for all Queenslanders. This measure is expected to reduce transfer duty revenue by $47m per annum on average over the forward estimates.
The Queensland Government has announced that again they will be extending the 50 per cent payroll tax rebate for apprentices and trainees for another 12 months, to 30 June 2026.
In addition, the rebate will extend to those Queensland businesses with annual Australian taxable wages of $1.3m or more who employ trainees and apprentices. This amendment is subject to the passage of legislation, however, it is intended to encourage the future pipeline of skilled workers in Queensland. It is estimated this initiative will result in tax relief of $58.1m for eligible businesses in 2025–26.
The Queensland Government has announced that medical practices will be exempt from payroll tax for payments made to employed and contracted general practitioners (GPs). The payroll tax exemption is aimed at supporting the retention and attraction of GPs across the state, and enhancing Queensland access to vital health care services.
Total revenue foregone is estimated to be around $130m per annum on average over the forward estimates.
If you wish to discuss the Queensland State Budget announcements, please reach out to the contacts below or a Grant Thornton Partner today.
