The principal feature of the 2021-22 Queensland Budget is the government’s continued economic support for employment growth.
The Budget projects an operating deficit of $3.8 billion for 2020-21 (more than $4.8 billion lower than forecast in the previous Budget) and a deficit of $3.5 billion for 2021-22. This represents a considerable improvement in the government’s financial position in the space of six months. There is even a projection of a small surplus for 2024-25.
The Budget includes the announcement of the expansion of the Queensland Jobs Fund to a total capacity of more than $3.3 billion. This is intended to support business in creating new roles in Queensland. $2 billion of this support (which is a $1.5 billion increase on the previous $500 million commitment) will go to the Queensland Renewable Energy and Hydrogen Jobs Fund. This includes the natural resources sector’s role in extracting the raw materials necessary for constructing the renewable energy generation and transmission infrastructure.
The government is committing an aggregate $460 million over four years to the Skilling Queenslanders for Work and Back to Work programs. The Back to Work program provides eligible small businesses with a financial incentive to hire previously unemployed workers.
For a full copy of KPMG’s executive summary and analysis of the Queensland 2021-22 Budget announcement, download our report.
The 2021-22 Victorian Budget sees further investment from the government, with some additional revenue-raising measures.
The Victorian Government’s budget for 2021-22 projects a net operating deficit of $17.4 billion for 2020-21 and a further deficit of $11.6 billion for 2021-22. Government net debt is not expected to exceed 27 percent of gross state product at any stage over the period from 2021 to 2025.
Alongside a $7.1 billion commitment to improving healthcare infrastructure and services, a prominent feature of the Budget’s expenditure program is the announcement of $3.8 billion allocated to the transformation of mental health and wellbeing support in Victoria. More than 20 percent of this is targeted at supporting children, young people and families.
The government notes that the Royal Commission into Victoria’s mental health system estimated the annual economic cost to Victoria of poor mental health at $14.2 billion. The Budget includes a proposed levy on employers with a national payroll greater than $10 million. The levy would be 'ring-fenced' to funding mental health support services in Victoria and would apply from 1 January 2022.
The Budget’s investment of $3.2 billion in transport infrastructure includes new trains and support for the increased take-up of 'zero emission' vehicles.
For a full copy of KPMG’s executive summary and analysis of the Victorian 2021-22 Budget announcement, download our report.