Ahead of the State Budget FY26, we made more than 100 recommendations for clear, practical reforms to address current pressures and position Queensland businesses for the future.
On behalf of members and all Queensland businesses, our State Budget submission relied on direct business feedback, including insights and data from our March Quarter Pulse Survey of Business Conditions, our Efficient Regulation surveys, Future of Work Report and Sustainability Maturity research, to identify key priorities for Queensland businesses.
Top priorities for businesses ahead of the State Budget were operating cost relief, tax reform and improvement in regulatory burden, as well as ways to manage workforces and measures to enhance productivity, access procurement and grow export capability.
We are pleased to see a commitment in this week’s Budget to many of the areas we raised as priorities on behalf of the Queensland business community. Read more in the news.
Business budget priorities, and State Budget FY26 commitments
Business-friendly government
In the budget, we welcomed the Small Business First Agenda, with $44.7 million over 5 years, committing to simplify small business procurement processes, standardise contracts and support smaller tenders, and set up business concierge services by region.
Taxation reform remains a priority, including payroll tax and insurance duty, along with lifting business capabilities in sustainability and cyber-security.
Growing workforces
Operating cost relief will be available through rebates on apprentice wages for business of all sizes. These measures aim to address the foremost cost pressure for Queensland businesses in the March Quarter Pulse survey, and the prolonged skills shortage in trades.
For employers liable to payroll tax, the 50% rebate on the wages of apprentices and trainees extends to 30 June 2026 at a cost of $58.1 million.
A separate program will be established for new small business rebates on apprentice wages, with $19 million allocated over 2 years. Indicatively, employers can claim 50% of first- and second-year apprentice wages, and 25% of third- and fourth-year apprentice wages.
Enhancing productivity
Better government services for business are among the aims of the Queensland Government Digital Fund. Its funding includes $650 million in services, and $350 million in capital, both for improving information technology systems. Service NSW is the model and aligns with businesses’ calls for digitisation and automation of their dealings with government.
Support for Queensland producers to adopt agricultural technology (or ‘agtech’) through the Sowing the Seeds of Agricultural Innovation Fund is welcome to increase productivity in Queensland.
Resource and energy efficiency
Commitments to lift green tape for tourism under the Destination 2045 strategy and mining through Enhancing Mineral Exploration are welcome. We will advocate for more initiatives of this kind to benefit other industries.
Local and global business
The Deputy Premier consolidates investment attraction under a single Sovereign Industry Development Fund, with an additional $180.6 million over 5 years, expressly for defence, biofuel, and biomedical industries, although, critical minerals and food proponents are likely to benefit.
Queensland manufacturing businesses can take advantage of new funding of $64.1 million over 3 years for facilitating export opportunities and adapting to supply chain disruptions.
More broadly, Trade and Investment Queensland receives another $18 million over 4 years to promote Queensland to investors, highly skilled migrants and markets for our exporters.
Thriving communities
As housing shortages have been correlated with skills shortages, we are pleased to see the Residential Activation Fund receiving $2 billion and supporting councils and developers to connect housing lots to trunk and essential infrastructure. This includes water, sewerage, stormwater, power, telecommunications, and transport needs to activate infill and greenfield residential developments.
Managing crime and community safety are also essential to secure businesses, which is why we support the $141.1 million over 5 years to Bolster Proactive Policing, providing tasers, body worn cameras, load bearing vests, tactical first aid kits, and radios for police.
We also welcomed the Secure Communities Partnership Program of $40 million over three years for local governments and small businesses to improve community safety and operating conditions in public commercial precincts and business strips.
What’s next
While there were positive measures for the business community in the Budget announcement, there is still work to do to give businesses long-term relief from high costs, low productivity and a challenging regulatory environment as well as the ability to invest in future growth.
We’ll continue advocating for the practical reforms that will help you not just survive, but thrive in the opportunities ahead.
