The 2020-21 Queensland Budget sees the government continuing its focus on jobs and health.
With an election having taken place barely a month ago, the Queensland Government’s budget for 2020-21 confirms the funding of various election commitments, including the construction of innovative new satellite hospitals to ease the burden on the state’s acute care facilities.
The Budget projects an operating deficit of $8.6 billion, to follow a deficit of $5.7 billion for 2019-20. This largely arises from the first instalments of a projected capital works investment of $56 billion over the forward estimates period to 2023-24.
Queensland has the most de-centralised population of the Australian states and it follows that more than half of the capital works expenditure is outside the Greater Brisbane area. This includes more than $5 billion for improvements to the Bruce Highway in 2020-21 alone. There is further expenditure in 2020-21 of more than $4 billion on new facilities for healthcare, education and training.
The government’s $500 million Backing Queensland Business Investment Fund will be attractive for Queensland-based businesses which have a proven product and are looking to move quickly to grow their sales and market share.
For a full copy of KPMG’s executive summary and analysis of the Queensland 2020-21 Budget announcement, download our report.
The 2020-21 Victorian Budget sees the government investing further in lifting the economy out of recession.
The Victorian Government’s budget for 2020-21 projects an operating deficit of $23.3 billion, to follow a deficit of $6.5 billion for 2019-20. However, despite projected infrastructure investment of more than $75 billion over the forward estimates period to 2023-24, government net debt is not expected to exceed 30 percent of gross state product during that time.
This infrastructure investment includes $5 billion for the Melbourne Airport Rail Link and $2.2 billion for the Suburban Rail Loop, with construction expected to commence on these projects in 2022. The expectation is that new transport infrastructure construction will directly create jobs and thereafter indirectly support employment by enhancing the state’s productivity.
We are pleased to see the commitment to invest $5.3 billion in social and affordable housing, constructing 12,000 additional homes for those on lower incomes. There is also a further $1.9 billion for construction of new buildings for schools.
The Jobs Plan includes the New Jobs Tax Credit program. This will be welcomed by eligible small-to-medium employers, who will receive a 10c Victorian payroll tax reduction for every dollar by which the 2020-21 and 2021-22 Victorian payrolls exceed that of the previous year.
For a full copy of KPMG’s executive summary and analysis of the Victorian 2020-21 Budget announcement, download our report.
The NSW Budget for 2020-21 has a strong focus on job creation, as well as introducing the prospect of some major tax reform.
The NSW Government’s budget for 2020-21 projects a deficit of $16 billion to follow a deficit of $6.9 billion for 2019-20, but a return to surplus by 2024-25. There are some sobering figures here, but there is also much to be positive about.
Reform of the stamp duty and land tax regimes is something that KPMG supported in its submission to NSW Treasury’s Review of Federal Financial Relations (FFR review) earlier this year. There is a fine balance between transitioning fairly into a new regime and obtaining the benefits of the reform more quickly. The government’s proposed consultation on replacing stamp duty and land tax with a single property tax on an “opt-in” basis for future purchasers is an encouraging starting point. NSW Treasury estimates that this change could inject $11 billion into the NSW economy in the first four years.
The NSW Government’s spending pipeline of over $107 billion for transport, health and educational infrastructure is being supplemented by additional maintenance and construction expenditure, which we are pleased to see includes improvements to social housing. The expectation is that these infrastructure projects will directly create jobs and also indirectly support employment by enhancing the state’s productivity.
For a full copy of KPMG's analysis of the NSW 2020-21 Budget announcement, download our report.
KPMG's Federal Budget analysis on impacts and implications for the Australian economy, business, industries and sectors.
KPMG's Federal Budget analysis on the major implications for Australia and business.
KPMG provides commentary on the mid-year Economic and Fiscal outlook given by treasurer the Hon Josh Frydenberg announced on 17 December 2020.
KPMG provides commentary on the Economic and Fiscal outlook announced on 17 December 2020.
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