State Budget 2017-18 Highlights for building and construction

Published: 16 June 2017

While the budget was touted as delivering job-creating infrastructure, the total capital program was down on last year’s budget by half a billion to $10.2 billion. As with previous years, the lion’s share (41 percent) will be spent on transport infrastructure. Spending on health, housing and education capital projects has increased. 

Of particular interest to the building and construction industry is the Housing Strategy which promises to boost construction across the state with 4,000 new social housing dwellings planned for the next five years. Six hundred of which will be built in the first year. This program, however, is heavily weighted towards south-east Queensland and will not target the regional areas that are doing it tough. As part of the Strategy there is also a commitment to unlocking government land and working with the private sector to deliver more housing. The details of this are still to be seen.

The budget extends the $5,000 boost to the First Home Owners’ Grant until the end of December, but at the same time introduces a new 1.5 per cent land tax surcharge on absentee land tax payers.

There is a $20m Household Resilience Program which will focus on the highest risk areas in Queensland where household mitigation measures would be effective in preventing or reducing damage. 

There will be $10m for regional planning and program implementation to support a land supply monitoring program.

The increased payroll tax rebate (from 25% to 50%) for apprentices and trainees will continue.

Read the media statement.

Key Budget Forecasts

  • The budget recorded a net operating surplus of $2.8 billion in 2016-17 from the boost to coal revenues. This is expected to reduce to $146m in 2017-18 as recovery work continues from Cyclone Debbie.
  • Queensland’s economic growth is forecast to be a modest 2.75 per cent in 2017-18 and three per cent in 2018-19. This is a significant revision on the confident forecasts of the previous budget.
  • The state’s unemployment rate is estimated to be 6.25 per cent in 2017-18 (no change from last year) and is forecast to drop to six per cent in 2018-19.
  • Population growth is forecasted to remain unchanged at 1.5 per cent.

Key Regional Commitments

Far North Queensland

  • $241m to expand and improve social housing in the regions
  • $49.8m for expansion and maintenance of regional schools
  • $30m to construct the Cairns Innovation Centre at James Cook University
  • $14m towards the Cairns Performing Arts Centre
  • $9.5m to complete the Cairns Hospital redevelopment
  • $5.6m to construct new operational police facilities in Cairns
  • $5.2m to extend the Aurukun Primary Health Centre
  • $3.8m to develop the Tingira Street Precinct in Cairns
  • $176m to extend the Cairns Convention Centre (subject to a business case)

North Queensland

  • $75.9m to expand and improve social housing in Townsville an additional $46m towards the Townsville Stadium
  • $43.9m for capital works projects in Townsville schools
  • $20.6m for the second stage of the Garbutt Depot and Logistics Centre redevelopment
  • $8.6m to complete the Townsville Hospital redevelopment
  • $7.7m  towards the Palm Island Primary Health Care Centre
  • $5.1m  towards the Village Townsville residential development
  • $4.5 m for the Townsville Courthouse upgrade

Mackay & Whitsunday

  • $63.4m for natural disaster relief and recovery arrangements
  • $21.7m for capital works projects in regional schools
  • $16.4m to expand and improve social housing in Mackay
  • $15m to help deliver the Whitsunday Airport upgrade
  • $7m towards the Bowen Police Station and watchhouse replacement
  • $6.4m for the Mackay permanent fire and rescue station replacement and upgrade
  • $3.5m to construct a new Adult Step Up Step Down facility in Mackay
  • $2.3m for the Proserpine auxiliary fire and resource station relocation and upgrade

Central Queensland

  • $57.5m for natural disaster relief and recovery
  • $27.1m to expand and improve social housing in Central Queensland
  • $25.1m for maintenance and capital work projects for Central Queensland schools
  • $9.4m for the revitalisation of the Yeppoon foreshore
  • $7.9m for the Capricornia Correctional Centre expansion
  • $7.1m towards the Gladstone Hospital Emergency Department upgrade
  • $5.8m for the Rockhampton Courthouse upgrade
  • $5m for the Rockhampton CBD development
  • $3.5m to construct a new Adult Step Up Step Down facility in Glastone

Wide Bay

  • $41.5m for maintenance and capital work projects for Wide Bay schools
  • $35.2m for the Hervey Bay Hospital Emergency Department expansion
  • $26.4m to expand and improve social housing in Wide Bay
  • $10m Maryborough Hospital refurbishments
  • $8m for the redevelopment of the Kingaroy Hospital
  • $5.7m for the redevelopment of Mon Repos Turtle Centre
  • $4.9m to construct a Rural Fire and State Emergency Services facility for Howard
  • $4.3m to upgrade the Kingaroy Courthouse
  • $3.5m to construct a new Adult Step Up Step Down facility in Bundaberg
  • $3.5m to relocate and upgrade the Childers auxiliary fire and rescue station

Sunshine Coast & Moreton Bay

  • $97.6m for maintenance and capital work projects for regional schools
  • $64.7m for further work at the Sunshine Coast University Hospital
  • $26.4m to expand and improve social housing in the region
  • $10m for infrastructure to open up Palmview for residential development
  • $22.9m for the expansion and refurbishment of the Caloundra Hospital
  • $7m for an expansion of Redcliffe Hospital
  • $5.5m for the replacement of the Caboolture police station and district headquarters

Darling Downs

  • $27.9m for maintenance and capital work projects for regional schools
  • $20m to expand and improve social housing in the region
  • $18m for the redevelopment of the Roma Hospital
  • $11.8m for the overhaul and refurbishment of the Kogan Creek Power Station

Brisbane

  • $119.1m for maintenance and capital work projects for Brisbane schools
  • $119m to expand and improve social housing in Brisbane
  • $29m for the Queensland State Netball Centre
  • $26.4m for urban renewal at Northshore Hamilton
  • $20.6m for the renewal of Central Station
  • $10m to undertake finalising works at Lady Cilento Children’s Hospital
  • $9.9m to construct three new Adult Step Up Step Down facilities across Brisbane
  • $8.7m to expand treatment facilities at Prince Charles Hospital
  • $6m for the transformation of the Sciencecentre

Logan

  • $39.9m for maintenance and capital work projects for Logan schools
  • $31.7m to expand and improve social housing in Logan
  • $9.5m for natural disaster relief and recovery
  • $7.6m to contribute to the Bromelton Regional Intermodal Freight Precinct
  • $5.5m for the Beenleigh Courthouse upgrade

Gold Coast

  • $233.5m to extend the Gold Coast Light Rail
  • $57.6m towards the construction of the Commonwealth Games Village
  • $50.9m for maintenance and capital work projects for schools
  • $28.9m to expand and improve social housing
  • $9m for natural disaster relief and recovery
  • $7.3m to develop the Carrara Precinct
  • $4.5m for the replacement of the Coral Gardens ambulance station