2025-26 QLD State Budget Update

While the new Queensland Treasurer David Janetzki promised his first Budget would be ‘boring’, in reality it was anything but, with the announcement of significant investment that will increase the State’s soaring debt position.

At the heart of the LNP’s first Budget since being elected in October (and its first State Budget since 2014), is a plan to spend more than Queensland earns over the next four years to address the key policy issues on which Premier David Crisafulli and his team won government. 

Cost of living relief, health infrastructure improvements, housing affordability, crime prevention, and of course, 2032 Olympic preparations are at the very heart of this budget. 

To underwrite this investment, Mr Janetzki is banking on budget improvements coming to fruition later this decade, opting against making an immediate fix to Queensland’s bottom line.  

It’s a calculated bet at a time when the cost of delivering services and essential infrastructure to a growing population are increasing, while revenue from GST redistributions and coal royalties are decreasing.  

Debt is projected to reach $190.4 billion by 2027–28, significantly higher than the $171.9 billion forecast under Labor’s State Budget last year. The 2025–26 deficit will hit a substantial $8.6 billion, comparable to levels seen during the height of the COVID-19 pandemic. 

Despite this, Mr Janetzki defended the plan as a “responsible pathway” to recovery and a return to surplus after the next state election in 2028. The Treasurer said the government would “frontload” investment to bring forward the benefits to Queenslanders.  

The Treasurer also claimed the spending was necessary to make up for budget blackholes and unfunded promises made by the previous government.

Housing 

Queenslanders will have access to one of the country’s most generous shared equity programs, helping them purchase homes valued up to $1 million. 

The $165 million Boost to Buy initiative will support individuals earning up to $150,000, and couples or joint applicants with a combined income of up to $225,000. 

Through the scheme, the government will contribute up to 30% equity for newly built homes and up to 25% for existing properties. It will be capped with 1,000 spots available, with expressions of interest opening from 1 July. 

In addition to the Boost to Buy program, the Budget will fund the following housing initiatives: 

• $1 billion of the $2 billion Residential Activation Fund will be allocated by June 30 2026, with funding directed to local councils and developers to build critical infrastructure to prepare land for development. Half the funding has been committed to the regions. 
• Abolition of stamp duty for first home buyers purchasing a brand-new home or vacant land to build their first home, and the extension of the $30,000 First Home Owner Grant for 12 months to June 2026. 
• Construction of 2000 new social and community homes each year by 2028, with a targeted aim of 53,500 new social homes by 2044 
• $366m boost to crisis and temporary accommodation, with 20 per cent uplift for specialist homelessness service providers across four years. 

Health 

The Queensland Government has committed to a record investment of $33.1 billion in the state’s public health system next financial year, up 10.2 per cent on the previous year.  

The Budget also includes the Government’s fully-funded $18.5 billion Hospital Rescue Plan, that will roll out more than 2,600 new hospital beds across Queenland, and deliver three new hospitals,10 hospital upgrades and expanded health facilities across the State. 

Other key health initiatives in the 2025-26 Budget include:  

• Boosting maintenance with $3.15 billion allocated over five years.  
• Stabilising the elective surgery waitlist, with $1.752 billion over four years to deliver 30,000 elective surgeries in 2025-26. 
• $1 billion boost for the Queensland Ambulance Service, including new stations at Beenleigh Central and Southport East and provision of relief accommodation for our paramedics in regional and remote areas. 
• Funding to grow the health workforce by 46,000 health professionals by 2032, including an additional 4,700 in the next year.  
• A commitment to deliver every dollar raised in the Mental Health Levy to new and expanded mental health services across the State, including 30 perinatal mental health beds and $50 million for two new youth Step Up, Step Down services.  

Cost of living 

The Government committed to targeting cost of living relief for those who need it most and will continue to fund a range of measures introduced under Labor. Key measures announced within the Budget include:  

• Increase in Electricity Maintenance Guarantee to $1.6 billion, building on $450 million already committed in the previous year to maintain generation assets and place downward pressure on power bills. 
• $37.5 million for free health checks for kindergarteners. 
• Confirmation of permanent 50 cent fares for public transport. 
• Extended First Home Owner Grant to $30,000 for 12 months, incentivising young people to break into the property market and encouraging supply through new build construction. 
• $26.3 million for Supercharged Solar for Renters program that will reduce power bills for renters. 
• $100 Back to School Boost, starting from 1 January for every primary school student in Queensland, providing support for excursions, schoolbooks and uniforms, at a cost of $47.1 million.  
• $200 Play On! sport vouchers for children aged between 5 and 17 to participate in either a summer or winter sport each year.

Crime Prevention 

In support of the Government’s continuing focus on the youth crime crisis, the Budget included a range of measures including:  

• $2.4 billion to deliver new facilities to expand prisoner capacity across Townsville and Brisbane. 
• $347.7 million to deliver Making Queensland Safer Laws. 
• $147.9 million for new tasers, vests, body-worn cameras and safety equipment. 
• $290.3 million to build new and upgraded police stations, facilities and beats at Burleigh, Nambour, Logan Central, Mount Gravatt, Boondall, Ferny Grove, Redcliffe, Edmonton, Palm Island and Goodna. Funds have also been set aside to buy land for proposed police stations at Yarrabilba, Rainbow Beach and Caboolture West. 
• Additional $275 million in financial assistance to provide payments to victims of crime, an extra $11.6 million for Victim Liaison Service to support individuals to navigate the court process, and a permanent $10 million each year for a new Victims Advocate Service. 

Olympics 

With $7.1 billion being invested by the Commonwealth and the State over the next seven years to deliver the 2032 Olympic and Paralympic Games, this State Budget includes $4.7 billion towards the Games across the next four years, including:  

• $3.8 billion for venues, including the 63,000-seat Victoria Park Stadium, the Sunshine Coast stadium and indoor sport centres in Moreton Bay and Logan. 
• $950 million over four years for the delivery of athlete villages in Brisbane, the Sunshine Coast, the Gold Coast and Rockhampton, as well as upgrades to the RNA Showgrounds. 
• $250 million allocated for The Games On! Program to upgrade more than 100 community club facilities in the lead-up to the 2032 Games in support of the next generation of athletes. 
• Increased funding of $308.5 million over four years for the Games Independent Infrastructure and Coordination Authority to progress with a delivery partner.

Energy 

The Crisafulli Government announced more than $5 billion in funding for state-owned energy corporations to invest across the energy supply chain to deliver affordable, reliable and sustainable energy. This Budget also charts the Treasurer’s Energy Roadmap which we will see in detail later in the year. 

• A record $2.4 billion investment in CopperString by 2028–29, connecting the North West Minerals Province to the national electricity grid and unlocking new economic opportunities. 
• $1.6 billion over five years for the Electricity Maintenance Guarantee, helping to reduce energy bills by properly maintaining generation assets. 
• $435 million in 2025–26 to progress three smaller pumped hydro projects. 
• $479 million for CS Energy’s Brigalow Gas Peaker Project at Kogan Creek, and continued support for new gas infrastructure through CleanCo and Stanwell. 
• $26 million Supercharged Solar for Renters Program, offering rebates of up to $3,500 to landlords to install solar panels on rental properties, benefiting around 6,500 households. 
• $26 million Supercharged Solar for Renters Program, offering rebates of up to $3,500 to landlords to install solar panels on rental properties, benefiting around 6,500 households.

Looking Ahead 

The LNP’s hallmark under David Crisafulli’s leadership in Opposition, and now Government, has been its discipline and focus on issues that matter to Queenslanders.  

While some expected Mr Janetzki’s first Budget to cut costs and reduce the State’s debt position, the Treasurer has instead opted to spend now to address the key policy issues that got the LNP elected and that still dominate the headlines. 

However, there is risk in this approach. As the pressures of a growing state increase, major infrastructure ramps up for the Brisbane 2032 Games, and new hospitals and schools break ground, there is little fiscal breathing room unless royalty revenues surge. 

After eight months in office, the real test for the Crisafulli Government begins now.  

Queenslanders expect the Government to deliver, but they won’t forgive anyone who breaks the bank to do so.

Contact us

Reach out to our Queensland team if you would like to discuss the new Queensland Budget and what it means for you.

Jamin Smith, Partner and Brisbane Office Head, SEC Newgate Communications – [email protected]

Max Dudley, Associate Partner, SEC Newgate Communications – [email protected]