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Queensland Labor budget forecasts surplus despite falling mining royalties Queensland Labor budget forecasts surplus despite falling mining royalties
(35 minutes later)
Queensland is forecast to achieve its biggest operating surplus in nearly a decade despite significant declines in projected mining royalties.Queensland is forecast to achieve its biggest operating surplus in nearly a decade despite significant declines in projected mining royalties.
Treasurer Curtis Pitt has unveiled a positive state budget that’s predicting a $1.2bn surplus this financial year - the state’s largest since 2006/07. Treasurer Curtis Pitt has unveiled a positive state budget that’s predicting a $1.2bn surplus this financial year – the state’s largest since 2006/07. The state made a $962m operating surplus in 2014/15.
The state made a $962m operating surplus in 2014/15. Queensland is expected to continue to earn more than it will spend with surpluses exceeding $2bn in 2016/17 and in 2017/18 despite forecasts of significant write-downs in royalty revenue and payroll tax revenue. Overall revenue growth is projected to be 3.2% this financial year, almost half of the 6.1% in 2014/15.
Queensland is expected to continue to earn more than it will spend with surpluses exceeding $2bn in 2016/17 and in 2017/18 despite forecasts of significant write-downs in royalty revenue and payroll tax revenue. Related: Queensland LNP members push for power to directly elect state leader
Overall revenue growth is projected to be 3.2% this financial year, almost half of the 6.1% in 2014/15. Steep falls in coal and oil prices have contributed to a $3.2bn write-down in royalties since the mid-year economic review. The decline in mining investment has contributed to a $396m write-down in payroll tax revenue.
Steep falls in coal and oil prices have contributed to a $3.2bn write-down in royalties since the mid-year economic review.
The decline in mining investment has contributed to a $396m write-down in payroll tax revenue.
However, Pitt says an increase in LNG exports and a measured approach to balancing the books will drive the bigger surpluses.However, Pitt says an increase in LNG exports and a measured approach to balancing the books will drive the bigger surpluses.
“We will see significant pick up in LNG royalties even though the revenue write-downs are about $3bn across the forward estimates,” he said. “We will see significant pick up in LNG royalties even though the revenue write-downs are about $3bn across the forward estimates,” he said. “We are experiencing a downturn in commodity prices but also through the price of oil which is affecting LNG.”
“We are experiencing a downturn in commodity prices but also through the price of oil which is affecting LNG.” He said while there was less demand from China for coal, India’s appetite for thermal coal was on the rise. The state’s economic growth is forecast to rise from two per cent to 4.5% in 2015/16. Pitt said this was stronger growth than any other state in the country.
He said while there was less demand from China for coal, India’s appetite for thermal coal was on the rise.
The state’s economic growth is forecast to rise from two per cent to 4.5% in 2015/16.
Pitt said this was stronger growth than any other state in the country.