Queensland’s 2026–27 Budget lands with a clear message: keep tax settings stable, invest heavily in infrastructure, and keep focus on crime, housing and essential services – while hoping a big capital program carries the economy through softer private investment conditions and global crises from tariffs to energy.

For business, the headline is a familiar mix of enabling investment, funding infrastructure and welcome operating cost relief as electricity bills come down for small businesses and their customers in the year ahead, alongside a missed opportunity on payroll tax reform.

If you’re looking for State of Origin bragging rights before the decider, already Queensland is showing up our Southern rivals, remaining in build-mode. The Budget’s four‑year capital program reaches a record $119.2 billion, with transport taking up most of the road.

Key business-enabling investments include:

• Bruce Highway and broader transport upgrades, aimed at supporting a growing population and improving freight and commuter efficiency.
• CopperString, supporting regional development and energy system transformation.
• Housing development, both as social policy and as an economic supply-chain driver (construction, materials, services).

Just as important as the spend is the delivery pipeline: as other states pull back, Queensland is positioning itself as the steady building jurisdiction – good news for contractors, suppliers, regional firms and workforce providers, if execution is strong.

Running costs:

On payroll tax, businesses get stability – but not relief.

No payroll tax cuts are offered, and there’s no change to thresholds or rates.

The Government extends the 50% payroll tax rebate on apprentice and trainee wages for another year, which is meaningful for firms investing in entry-level talent.

From a business perspective, stable settings are welcome, but the case for lifting the threshold is growing: higher wages, rising borrowing costs, and pricier inputs are squeezing operating margins. As wages rise – especially in the regions where firms are paying more to attract staff – more businesses are likely to be captured by a threshold last lifted in 2018–19.

A notable positive is the expectation that maximum electricity prices will fall for Queensland businesses. The default market offer in the South East is expected to fall in nominal terms by around $440 for average small business bills, bringing them below $4000 for the year and comparing highly favourably – once again – with Southern States. Regulated electricity prices are expected to deliver an average reduction of $212 for an annual bill of around $2,400 on average for small businesses.

Lower wholesale costs have been supported by gas prices remaining well below recent peaks in 2022 and by greater grid battery deployment by publicly-owned utilities. In practical terms, more storage means better use of solar and wind surpluses, and less reliance on gas generation when demand peaks.

While not packaged as a single “business reform” announcement, the Budget includes allocations that could benefit business if industry is strongly involved in delivery, including:

• Cyber security and technology
• Skills in high demand
• Landfill avoidance and recycling activation
• Critical minerals and innovation

For business groups, the opportunity now is to shape implementation so these programs translate into productivity gains – not just announcements.

Landfill diversion programs receive an extra $53.6 million, including the Waste Reduction and Recycling Activation Fund. On broader sustainability, the Budget also includes $330.5 million for the Queensland Reef and Catchment Water Quality Program – relevant for regions and industries where environmental compliance and water outcomes shape approvals and reputation.

Where government attention is concentrated: safety, housing, and healthcare.

The Budget’s political and social centre of gravity is clear:

• Crime and safety remains the lead theme, including a $23 million police recruitment and retention drive and linking justice investments with a $260 million Queensland Protection Commission.
• Housing: an additional $537.1 million over five years, contributing to a record $5.725 billion over four years, with a long-run target of 53,500 social and community homes by 2044.
• Mental health: $394.4 million drawn from the levy for new beds across perinatal, adolescent, acute and psychiatric services (including Cairns, Rockhampton and the PA Hospital).
• Skills: $149 million extra for skills in high demand – tied to workforce needs across health, housing and the 2032 Games.
• Affordability: measures such as a $150 Back to School Boost per primary student, plus bulk water cost freezes in South East Queensland saving small businesses between $50 to $300, and market-driven electricity relief for households and small businesses (estimated $200–$400 less on average).

The economic story underneath: building through softer conditions

Queensland is pitching resilience amid a tougher funding environment, arguing the Commonwealth is providing less GST and less disability and disaster funding. The Government’s longer-run ambition is budget repair, targeting a surplus by 2029–30.

But the forecasts point to a uncertain path:

• Inflation and wages: CPI and WPI are expected to peak around 3.75% and 3.5%, with real wages going backwards in the year ahead before improving later.
• Business investment is forecast to slow sharply to 0.75%, reflecting reduced confidence.
• Population growth stays strong at least 1.25% each year, driven by interstate migration – supporting demand, including for housing and infrastructure, and essential services.
• Operating deficit remains large at $8.8 billion (1.0% of GSP) this year, before a small surplus appears around 2030.
• Fiscal deficits exceed $15 billion each year until 2030, easing as the infrastructure cycle matures.
• Debt rises from $142.4 billion to $216.5 billion, largely driven by capital spending.
• Bottom line for business
• Queensland’s 2026–27 Budget is best read as a big-build, steady-tax plan. It offers business clear upside through infrastructure and cost relief (especially electricity), and real opportunity in skills and capability programs – if business is embedded in delivery.

The key disappointment remains payroll tax: stability is helpful, but without a threshold lift, more firms are likely to drift into the net as wages rise – particularly in regional labour markets already under pressure.

New funding for a range of purposes, which assists in shaping the budget funding profile and which may be made available to emerging community priorities, includes the following:

• Queensland Legacy Fund: $300 million from centrally held funds for Suncorp Stadium upgrades, and invest in local sporting infrastructure projects with a focus on regional Queensland.
• Racing Future Fund: $100 million each for operating and capital funding to help deliver modern and fit-for-purpose racing infrastructure across all three codes of racing.
• Training and Future Skills Investment: $104.8 million to strengthen public providers in delivering skills that are in demand and supporting ongoing access to training in regional communities.
• Skills Demand for Housing, Construction and Health: $44.2 million in 2026-27 to continue to meet demand for skills in the economy, including growing demand for apprenticeships and traineeships, to address critical priorities, including health, housing and the 2032 Games.
• Cyber Security and Technology Fund: $15 million for cyber security and technology initiatives.
• Driving Investment in Queensland’s Mineral Opportunity: $46 million over three years is being met internally by the department to enhance investment attraction, build value chains for critical minerals growth and ensure big mineral projects come online in a timely manner.
• Investment in Science and Innovation: $22 million over four years and $5.5 million per annum ongoing to deliver science and innovation programs, partnerships, and improved connectivity.

Industry support programs include the following.

• Securing a Future for Mount Isa and the North West: $300 million over four years, $95.5 million held centrally, to secure ongoing operations of Mount Isa copper smelter and Townsville refinery that will protect regional Queensland jobs and strengthen Australia’s copper capability.
• Infrastructure Activation Fund: additional $20 million towards Economic Development Queensland’s $200 million contribution to enable infrastructure works unlocking new homes in priority development areas at Cairns, Redlands, and Caboolture and around $2 billion in support from the Federal Government’s 100,000 Homes for First Home Buyers Program.
• Prosper 2050: additional funding of $20 million over four years to grow primary production output to $30 billion by 2030, implement the Queensland Future Timber Plan 2050 and support fisheries.
• Unlocking Resources Potential and Managing of Key Risks Within the Abandoned Mine Lands Program: $21.3 million over two years to support re-commercialisation at viable sites and $1.6 million over two years for the completion of essential safety work.
• Queensland Fuel Security Plan: $11.9 million over two years for development of the Taroom Trough Development Plan, plus $5 million over two years to accelerate domestic fuel supply priorities, undertake targeted assessment of Queensland’s oil resource potential and the evaluation of domestic refining capability. This can assist in accessing some of the federal funding allocated under the $3.2 billion Australian Fuel Security Reserve.
• Land Activation Program: $15 million over two years is being met internally by the department for Economic Development Queensland to deliver due diligence and land activation work on pilot sites to unlock up to 12,000 ha to market to the private sector for housing delivery.
• Screen Queensland: $9.9 million over three years for Brisbane Studios, and undisclosed funding over two years for Screen Industry Attraction and Development.

Other large programs include:

• Easier Access to Health Services: $750 million in 2026-27 for over 200 beds and new capacity through Hervey Bay Hospital Expansion, Cairns Hospital Expansion, West Moreton Ripley sub-acute facility, Gold Coast sub-acute facility, and Wide Bay interim care beds.
• New School Infrastructure: $700 million over five years, including $254.1 million held centrally, for the planning and construction of new schools including a new secondary school in Ripley Valley, a new primary school in Greater Flagstone, two new special schools in Townsville and Wynnum-Manly and stage two of the new secondary school in Gracemere
• Gold Coast Transport Plan (planned investment) is to extend Gold Coast Light Rail connection between Gold Coast University Hospital and harbour Town, while supporting GC Surfer, metro-style vehicles every 10 minutes between Robina and Gold Coast Airport.
• The Wave program includes a $5.5 billion investment for Stage 1 (Beerwah to Caloundra – 19 kilometres) and planned investment for Stage 2 (Caloundra to Birtinya – 7 kilometres) and a Stage 3 high-capacity, high frequency metro service from Birtinya to the Sunshine Coast Airport, which will be supported by the Mooloolah River Interchange Upgrade.
• Continued Delivery of 53,500 Social and Community Homes by 2044: $487.3 million over five years to support continued delivery of 53,500 social and community homes by 2044. This contributes towards the Government’s record investment of $5.725 billion over four years.
• Funding for Stadiums Queensland: additional $163.3 million over four years to support Stadiums Queensland to maintain major sporting stadiums, high performance and community venues

Infrastructure highlights by region are below.

Far North

• Barron River Bridge
• Barlow Park upgrade
• Cairns Hospital upgrade

North

• CopperString
• Townsville University Hospital upgrade
• Kirwan Police Complex Stage 2

Mackay-Whitsundays

• Harrup Park upgrade
• Mackay Hospital expansion
• Mackay-Bucasia Road upgrade

West

• Longreach Water Security
• Diamantine Developmental Road upgrade
• Alpha-Tambo Road upgrade

Darling Downs

• Gracemere High School
• Health Sciences Academy
• Rockhampton Hospital Emergency Department upgrades

Wide Bay

• Paradise Dam
• Maryborough Manufacturing Hub
• New Bundaberg Hospital

Sunshine Coast

• The Wave
• Mooloolah River Interchange
• Upgrading Sunshine Coast Stadium

Metro

• Bribie Island Bridge
• New special schools
• Queensland Cancer Centre of Excellence
• Redcliffe, Prince Charles, Princess Alexandra, QEII, Logan, and Ispwich hospital upgrades

Gold Coast

• Gold Coast Transport Plan
• New Coomera Hospital
• New Coomera Special School