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By: Kristina Popova, Sian Sinclair, Andrew Cornes
24 Jun 20264 min read
Deficits are forecast throughout the forward estimates, with a surplus of $619m projected for 2029-30. State debt is also forecasted to increase from $146.9b in 2025-26 to $216.4b in 2029-30.
Inflation to is projected to decrease from 4.75 per cent in 2025-26 to 3.75 per cent in 2026-27, easing to 2.5 per cent until 2029-30. Global economic uncertainty continues to remain, resulting in a slower forecasted economic growth for the state of 1.75 per cent.
Consistent with the Government's stated policy position, the Budget does not introduce broad-based increases to major state taxes. Instead, the revenue measures (introduced through the Revenue (Cost of Living Relief Locked-in Law) and Other Legislation Amendment Bill 2026) focus primarily on targeted concession reforms, compliance initiatives and sector-specific charges.
From 1 August 2026, temporary residents will generally no longer be eligible for home, first home or vacant land transfer duty concessions and will instead be subject to standard duty rates. Certain exemptions will continue to apply. The measure is expected to reduce revenue foregone by approximately $28.9m over four years.
Eligibility for surcharge duty and land tax relief has been expanded to support housing supply initiatives. Key changes include reducing the minimum dwelling threshold from 50 to 20 dwellings, introducing a pre-approval process and adopting a broader assessment of contributions made by closely-related corporate entities.
The 50 per cent payroll tax rebate for apprentices and trainees has been extended until 30 June 2027. As apprentice and trainee wages are already exempt from payroll tax, the rebate effectively provides additional support to eligible employers.
The Government will invest an additional $60m over four years in Queensland Revenue Office compliance and debt recovery activities. The initiative is expected to generate approximately $220m in additional revenue and increase collections of tax, royalty and penalty debt by approximately $612m over the same period.
Additional revenue measures include changes to the waste disposal levy under the Queensland Waste Strategy, which are expected to generate approximately $569.7m over four years, and a 9 per cent increase in regulated pilotage fees from 1 February 2026, which is expected to raise approximately $109.8m over five years.
If you wish to discuss the above budget announcements, please reach out to a Grant Thornton Partner today.
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