The Queensland 2020-21 Budget has diverged from other newly announced budgets in Australian states by leaving property tax concessions out of its recovery plans. Instead, the state is choosing to focus in on infrastructure, build-to-rent, and tourism. 86,000 interstate migrants, health and education investments as well as infrastructure spending are expected to boost the state economy.
Queensland will continue its build-to-rent pilot program with Mirvac and Frasers Property Australia who are creating two projects in Newstead and Fortitude Valley. This is on top of a $100 million Works for Tradies program over two years to deliver social housing through the state.
State treasurer Cameron Dick said they are performing better than expected with employment initially forecast to grow at 3.5% now forecast at 6.75% to mid-2021.
“The successful health response in Australia, including in Queensland, has allowed a greater than anticipated rebound in domestic economic activity ,” Dick said. “The next four years will be a hard road for Queensland as we recover from Covid-19. The opening of our borders today is a signal of hope and a sign of confidence in the plan that has brought us this far.”
The Queensland government will spend $74 million on tourism recovery and a strong focus on growing regional areas as more than half the population resides outside south-east Queensland.
There is $6.3 billion in infrastructure spending in the budget for the Bruce Highway, Pacific Motorway and Ipswich Highway as well as funding for the Cross River Rail, Gold Coast Light Rail and north coast light rail between Beerburrum and Nambour.
A record $21.8 billion will be spent on health with satellite hospitals in Redlands, Brisbane’s south side, Pine Rivers, the Gold Coast, Ipswich, Caboolture and Bribie Island. Another big construction project to start this financial year will be the $654 million expansion of the Southern Queensland Correctional Precinct near Gatton to create a 1,000-bed correctional centre.
The big increase in infrastructure spending is expected to have a run-on effect in the property industry over the next few years. Developers will be keeping an eye on the new infrastructure — particularly the Cross River Rail — to see which areas are growing, and would be a great spot for their next project. Keep an eye out for new property popping up!