Queensland Budget 2016-17 Queensland Budget 2016-17 Advancing - PowerPoint PPT Presentation

Queensland Budget 2016-17

Queensland Budget 2016-17 Advancing Queensland’s Economy $300 billion Growing Economy Innovation $53 billion Budget Attracting Creating Investment Jobs More than $40 billion infrastructure over 4 years Building Infrastructure 2

Queensland Budget 2016-17 Queensland’s Economic Plan 3

Queensland Budget 2016-17 Economic Outlook Strongest economic growth in Australia this year and coming years Economic growth at 3½% in 2015-16 rising to 4% in 2016-17 Growth led by diversified export portfolio, incl. LNG ramp-up Components of growth stabilising, including improving household consumption and business investment Employment growth of 1¾%, unemployment falling to 5 ¾% over FEs

Queensland Budget 2016-17 Economic growth comparisons 350 300 INDEX (1989-90 = 100) 250 200 150 100 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 QUEENSLAND AUSTRALIA OECD 5

Queensland Budget 2016-17 Fastest growing State economy 5 4 Annual % change 3 2 1 0 2014 – 15 2015 – 16 2016 – 17 2017 – 18 Est. Forecast Forecast Actual NSW Vic. QLD WA SA Tas. 6

Queensland Budget 2016-17 Queensland’s diversified economy 100% Health care 90% Education and training 80% Finance and property services 70% Transport and communications 60% Other 50% Wholesale and retail trade 40% Construction Public sector and utilites 30% Manufacturing 20% Natural resources 10% Agriculture 0% QLD NSW VIC SA WA TAS NT ACT 7

Queensland Budget 2016-17 Components of Queensland’s growth 2014 – 15 2015 – 16 2016 – 17 2017 – 18 4 Annual % point contribution 2 0 -2 -4 -6 Household Dwelling Business Public final Overseas Overseas GSP consumption investment investment demand exports imports 8

Queensland Budget 2016-17 Fiscal Outlook Operating surpluses of $3.2 billion over forward estimates Operating surplus of $867 million for 2016-17 – largest in a decade Revenue growth (3.2%) outpacing expenses growth (2.9%) General Govt debt $10.4 billion lower than 2014-15 Budget projection Debt to revenue ratio down from 87% in 2014-15 to 71% in 2015-16

Queensland Budget 2016-17 Forecast surpluses 1400 1200 1000 $m 800 600 $1.1b disaster Lower GST in relief withheld 2018-19 400 by Federal Government 200 0 2015-16 2016-17 2017-18 2018-19 2019-20 Est. Forecast Forecast Forecast Forecast Actual 10

Queensland Budget 2016-17 Revenue outpacing expenses Average revenue 56 growth 3.2% 54 Average expenses $ billions growth 2.9% 52 50 2015-16 2016-17 2017-18 2018-19 2019-20 Revenue Expenses

Queensland Budget 2016-17 New fiscal principle Average public service FTE growth over the forward estimates should not exceed population growth. 12

Queensland Budget 2016-17 Reduction in General Government Debt 2014 – 15 Budget 2015 – 16 Budget 2016 – 17 Budget 50 46 42 $ billions 38 34 30 2014 – 15 2015 – 16 2016 – 17 2017 – 18 2018 – 19 2019 – 20 13

Queensland Budget 2016-17 Reduction in Non-Financial Public Sector Debt 84 Non-Financial Public Sector gross borrowings 82 80 78 $ billions 76 74 72 70 2014 – 15 2015 – 16 2016 – 17 2017 – 18 2018 – 19 2019 – 20 2014 – 15 Budget 2014 – 15 MYFER 2015 – 16 Budget 2015 – 16 MYFER 2016 – 17 Budget 14

Queensland Budget 2016-17 Debt to revenue ratio General government debt to revenue forecasts Debt to Revenue ratio 105 down 15% on 2014-15 forecast 100 2014-15 95 Budget 90 % 85 2015-16 80 Budget 2016-17 75 Budget 70 65 2012 – 13 2013 – 14 2014 – 15 2015 – 16 2016 – 17 2017 – 18 2018 – 19 2019 – 20 15

Queensland Budget 2016-17 Debt Action Plan Defined Benefit Scheme State Infrastructure Fund $2b $4b repatriation $10b surplus $6b $2b Debt reduction remaining surplus Current fund 100% 100% All payouts guaranteed by legislation $34b Fully funded Fully funded $24b $24b Only fully funded scheme in Australia Scheme funding as at 30 June 2015 16

Queensland Budget 2016-17 Revenue measures 3% transfer duty surcharge on foreign purchasers of residential property Tax avoidance crackdown, particularly not-for-profit status 12-month boost to First Home Owners Grant for new builds ($20,000) Transfer duty concession for intergenerational transfers of family farms

Queensland Budget 2016-17 Peer comparison Bond yields and gross debt levels for advanced economies 3.50 10 YEAR GOVERNMENT BOND YIELD (PER CENT) Portugal 3.00 Queensland 2.50 New Zealand Australia 2.00 Singapore Israel Taiwan 1.50 United States Korea Italy Slovenia Spain Malta Canada Hong Kong Norway 1.00 United Kingdom Slovak Republic Ireland 0.50 Czech Republic Finland France Sweden Belgium Austria Denmark Netherlands 0.00 Germany -0.50 Switzerland -1.00 0 20 40 60 80 100 120 140 GROSS DEBT (PER CENT OF GDP) Non-AAA AAA QLD 18

Queensland Budget 2016-17 Queensland Budget 2016-17 Growing innovation $405 million Advance Queensland Includes $225 million Advance Queensland acceleration Growing Innovation $19.7 million Biofutures roadmap 19

Queensland Budget 2016-17 Attracting business investment $40 million Industry Attraction Fund Two new trade offices in China and Singapore Attracting Investment $33 million Connecting with Asia tourism strategy 20

Queensland Budget 2016-17 Market-led proposals $450 million $100 million $100 million Logan Motorway Queensland Brisbane International enhancement Aquarium and Cruise Terminal Maritime Museum 1300 potential jobs 300 potential jobs 21 21

Queensland Budget 2016-17 Building Infrastructure More than $40 billion over four years $10.7 billion in 2016-17 $2 billion Building Infrastructure State Infrastructure Fund 31,000 jobs supported in 2016-17 22

Queensland Budget 2016-17 2018 Gold Coast Commonwealth Games $550 million Health and Knowledge Precinct $122 million Carrara Sports Precinct Global investment and sponsorship opportunities 23

Queensland Budget 2016-17 Environment $21.7 million this year to protect the Great Barrier Reef $89.1 million wildlife and environmental protection $33 million Connecting with Asia Strategy 24

Queensland Budget 2016-17 Advancing Queensland’s Economy Growing Innovation Attracting Creating Investment Jobs Building Infrastructure 25