Queensland is standing at the edge of something extraordinary. With a defining decade of events on the horizon, a pipeline of landmark infrastructure investment and high population growth (an increase of 100,000 people in the state in the past year alone), the next decade could be the most transformative in Queensland’s history.
The opportunity is real. The momentum is building.
But right now, businesses are struggling and we risk missing this extraordinary opportunity for our State.
High interest rates, stubborn inflation, rising energy and insurance costs, weak productivity and mounting regulatory pressures are squeezing margins and stalling growth. At the same time, escalating wage bills, chronic skills shortages and increasing workplace complexity are pushing many businesses to breaking point.
Confidence has collapsed. The latest Business Chamber Queensland Pulse Report (March quarter) shows sentiment in its steepest decline in two decades which is a stark signal that the business community is under acute strain.
All Queensland businesses – tradies, manufacturers, tourism operators, hospitality, retailers, professional services firms and exporters – just to name a few – want to be part of the growth story. But too many are struggling to make ends meet. Low productivity and weak profitability are taking their toll.
Businesses feedback is clear: the business environment is tough. Hiring has stalled, vacancies are going unfilled, costs are escalating, markets are contracting and consumer spending is falling. As one tourism business told us 2026 is the worst year recorded in the 37-year history of their business. Another says: “I am facing a 65% downturn in visitors.”
The Queensland Government’s 2026-27 Budget is a critical opportunity to turn this around, by strengthening the business environment and restoring the confidence needed to invest, hire and grow.
Payroll tax relief is at the top of our 70-plus recommendations alongside calls to deliver much-needed infrastructure while cutting red tape and providing direct capability-building support to businesses.
Lifting the payroll tax threshold from $1.3 million to $1.5 million would reduce the hand break on growth while commitments on priority projects from the Bruce Highway to energy infrastructure would send a clear signal that Queensland is open for business and is ready to support jobs growth.
Practical recommendations to build business capability in key areas including workforce, sustainability, procurement, digital and AI, trade and for women in business are not just considerations. They are essential for businesses to be able to manage in an evolving economy.
Queensland businesses can’t grow if the environment is not right. They need competitive tax settings, quality infrastructure, streamlined regulation, and access to skills and technology. Government can create the conditions for business, and then business can drive the growth and prosperity for our State.
Right now, these businesses are under strain. And for many operators, the pressure is relentless, from fuel prices to shifting tax settings, talk isn’t enough. Government must act now to ease the crushing cost burden or risk pushing more businesses to the brink.
Queensland’s defining decade is already underway. The 2032 Olympic and Paralympic Games, the Rugby World Cup, a rapidly growing population, and expanding opportunities across tourism, resources, technology and an unprecedented demand for Australian-made goods and services present a powerful platform for economic transformation.
But defining decades do not simply happen. They are shaped by deliberate planning and collaboration. Business Chamber Queensland is already working with international counterparts, including the Los Angeles Area Chamber of Commerce, to ensure local businesses are positioned to fully leverage the opportunities leading into Brisbane 2032.
This is the moment for the government to step up.
We are calling on the Queensland Government to use every lever available to improve the business environment. This government needs to send a clear message that it is committed to creating the conditions for Queensland businesses to thrive.
Our message to government is clear: Queensland businesses are the backbone of our economy and the heart of our communities. Back Queensland businesses, and they will back Queensland.
