Date posted: 22/06/2023

Queensland State Budget 2023-2024 Overview

The recent 2023 state budget brings significant invest to health, housing and community safety with a few noteworthy tax changes.

In brief

  • Tax changes
  • Cost of living relief
  • Budget additional funding

The recent 2023 state budget brings significant investment to health, housing, and community safety with a few noteworthy tax changes.

  • Surplus – Projecting a record $12.3 billion surplus in 2022-23 and a deficit of $2.2 billion in 2023-24, with the budget projected to return to surplus from 2024-25. A net debt of $16.2 billion is projected for 2023-24, growing to $46.9 billion in 2026-27. 
  • Key economic indicators - Economic growth (3%), unemployment rate (4.25 %), inflation (3.75%) and wage growth (4%).
  • Indexation - Indexation Rate for fees and charges is set at 3.4% for 2023-24. 
  • QRO Funding - The budget provides funding of $49.4 million over three years to retain Queensland Revenue Office’s (QRO) ongoing capacity to deliver increased debt recovery. An additional $24.4 million will be provided over four years to support QRO’s capacity to undertake compliance work. The compliance program is expected to generate revenue of $224.8 million over four years.

Cost of living relief totals $8.2 billion and includes: 

  • A $550 Cost of Living Rebate on electricity bills to all Queensland households; and
  • A $650 rebate on electricity bills for around 205,000 eligible small businesses.

Tax changes include:

  • Extension of the payroll tax discount for regional employers for a further seven years, out to 30 June 2030. 
  • Extension of the 50% apprentice and trainee payroll tax rebate for an additional 12 months.
  • Confirmation of an amnesty for qualifying medical practices who are liable to pay payroll tax on payments made to contracted GPs. The amnesty is due to expire on 30 June 2025; and
  • Confirmation of tax concessions for eligible Build to Rent developments. Tax concessions include a 50% reduction in the taxable value of land for land tax, a 100% reduction in the taxable value of land for land tax foreign surcharge and a 100% discount on any additional foreign acquirer duty for land.

The budget provides additional funding of: 

  • $131.4 million over three years to deliver a suite of programs and projects to enhance Queensland’s disaster resilience; and
  • $3 million in 2023-24, and $1.5 million in 2024-25, for a package of initiatives to support the mental health and wellness of small business owners.