Queensland Treasury 18-K Annual report (foreign governments)

EXHIBIT (c)(iii)

Budget Papers of the Co-Registrant for 2018-19.

FORWARD-LOOKING STATEMENTS

This exhibit contains forward-looking statements. Statements that are not historical facts, including statements about the State of Queensland’s (the “State” or “Queensland”) beliefs and expectations, are forward-looking statements. These statements are based on current plans, budgets, estimates and projections and therefore you should not place undue reliance on them. The words “believe”, “may”, “will”, “should”, “estimate”, “continue”, “anticipate”, “intend”, “expect”, “forecast” and similar words are intended to identify forward-looking statements. Forward-looking statements speak only as of the date they are made, and neither the Queensland Treasury Corporation nor the State undertake any obligation to update publicly any of them in light of new information or future events.

Forward-looking statements are based on current plans, estimates and projections and, therefore, undue reliance should not be placed on them. Although the Queensland Treasury Corporation and the State believe that the beliefs and expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such beliefs and expectations will prove to have been correct. Forward-looking statements involve inherent risks and uncertainties. We caution you that actual results may differ materially from those contained in any forward-looking statements.

A number of important factors could cause actual results to differ materially from those expressed in any forward-looking statement. Factors that could cause the actual outcomes to differ materially from those expressed or implied in forward-looking statements include:

• the international and Australian economies, and in particular the rates of growth (or contraction) of the State’s major trading partners;

• the effects, both internationally and in Australia, of any subsequent economic downturn, the effect of ongoing economic, banking and sovereign debt risk, and any stalling of the protracted United States recovery;

• increases or decreases in international and Australian domestic interest rates;

• changes in the State’s domestic consumption;

• changes in the State’s labor force participation and productivity;

• downgrades in the credit ratings of the State and Australia;

• changes in the rate of inflation in the State;

• changes in environmental and other regulation; and

• changes in the distribution of revenue from the Commonwealth of Australia Government to the State.

Queensland Budget 2018-2019

BUDGET SPEECH

Budget Paper No.1

budget.qld.gov.au

2018-19 Queensland Budget Papers

1. Budget Speech

2. Budget Strategy and Outlook

3. Capital Statement

4. Budget Measures

5. Service Delivery Statements

Appropriation Bills

Budget Highlights

The Budget Papers are available online at budget.qld.gov.au

© Crown copyright

All rights reserved

Queensland Government 2018

Excerpts from this publication may be reproduced, with appropriate

acknowledgement, as permitted under the Copyright Act.

Budget Speech

Budget Paper No.1

ISSN 1445-4890 (Print)

ISSN 1445-4904 (Online)

Appropriation Bill 2018

(First reading speech, 12 June 2018)

The Honourable Jackie Trad MP

Deputy Premier

Treasurer

Minister for Aboriginal and Torres Strait Islander Partnerships

Mr Speaker,

I move that the Bill be now read a first time.

I’m proud today to present the Palaszczuk Labor Government’s fourth Budget.

This is a Budget for all of Queensland.

This is a Budget for all Queenslanders.

From baby Elizabeth Mackenzie – the 5 millionth Queenslander born last month – to the traditional owners on the land on which we stand, the Jagera, Yuggera and Turrbul People.

Whether you live in Brisbane or Blackall.

Labor is doing the things we said we’d do.

No surprises – no excuses.

Queenslanders are living through an era of growth and rapid change.

Our population is one of the fastest growing in the nation.

Technology continues to transform the way we live and work.

The Palaszczuk Labor Government will help our communities to navigate the challenges of change and set a course for the opportunities of growth.

1

We will equip our workers on the frontline of a fast-changing world with the skills and support to succeed.

We will encourage innovation and give businesses and industry the confidence to grow.

We will direct every effort to our number one priority – jobs for Queenslanders.

Here’s how.

By delivering the infrastructure, skills and services that our strong, diversified economy needs.

By including everyone in the benefits regardless of who you are or where you live.

That is our strategy for this State.

That is the job for this Government.

That is the plan in the Budget I deliver today.

We begin with the largest capital works program since the 2011 flood recovery.

Building the infrastructure for a productive, strong and sustainable economy.

Supporting growth without compromising our quality of life.

Delivering jobs in construction today and supporting the jobs of the future.

Mr Speaker, this Queensland Government must do the heavy lifting in infrastructure investment because this Federal Government simply will not.

And this Labor Government must keep repairing the damage inflicted by the last LNP Government’s savage cutbacks to frontline services.

More doctors, nurses, teachers, police and firefighters.

The people who work so hard delivering excellent essential services every day.

The professionals who educate our kids, keep Queenslanders healthy and protect our communities from harm.

More infrastructure, better services – this is what we said we would do.

Budget outcome

Mr Speaker, Queensland’s economy has grown by 7.2 per cent in real terms since December quarter 2014.

Today, I can announce that we expect a surplus of $1.512 billion in 2017-18 – more than three times the size of the Mid-Year Fiscal and Economic Review forecast.

The Budget also forecasts operating surpluses over the forward estimates, starting with $148 million in 2018-19.

2

And economic growth is forecast to accelerate from 2.5 per cent in 2016-17 to 3 per cent by 2018-19.

Our responsible budget management is part of this success story, but it would be impossible without our job generating initiatives that build business confidence and open up opportunities for growth and investment.

This is a time of growth – and it is also a time of change.

The Queensland economy continues to successfully shift from the big economic gains of a never before seen resource boom that brought with it massive investment, big infrastructure and jobs and wages growth.

Business investment is rebounding following the construction of the liquefied natural gas infrastructure.

It’s supported by a range of renewable energy projects that will be a key driver of economic growth.

We are rolling out a nation-leading renewable energy industry with an estimated $4.2 billion pipeline of projects underway or financially committed across the State.

This Budget delivers surpluses, builds new infrastructure, grows the State’s skills and expands our services – all to support a growing and changing State.

Creating jobs, delivering infrastructure

Queensland now has the second highest annual employment growth rate in the country.

Employment growth is forecast to strengthen to 2³⁄₄ per cent over the year to June quarter 2018, the strongest growth in more than a decade.

More than 150,000 jobs have been created since we came to Government. That’s equivalent to almost 4000 new jobs in Queensland every month since January 2015.

These are big numbers – but behind these numbers are people.

Queenslanders who now have a place in our economy and hope for the future.

And in this Budget - through our $45.8 billion infrastructure pipeline over the next four years – Queenslanders will continue to have a place in our economy.

It’s an increase of more than $3 billion on last year’s Budget – directly supporting 38,000 jobs this year alone.

Our plan means tens of thousands of additional jobs each year, and our plan means building the essential infrastructure to meet the needs of our fast-growing State.

From the Cairns Convention Centre to Cross River Rail, the M1 and Bruce Highway upgrades to Rookwood Weir and Townsville Stadium we are delivering the right projects, in the right place, at the right time.

3

Building the economy of the future

Rapid change all around us means Queensland must become a more diverse and productive economy.

Securing our modern industries and creating jobs that will be there for years to come.

To do that, this Budget invests in innovation and anticipates areas of emerging opportunity.

Let’s take the example of the waste disposal levy announced earlier this year.

We will not allow Queensland to be a dumping ground for interstate waste – we all saw this when the LNP’s short-sightedness in removing the levy led to a procession of dump trucks across our border.

But this measure is also an opportunity to invest in new and emerging industries and technology.

And today I am announcing a $100 million down payment over the next three years into a new Resource Recovery Industry Development Program.

This initiative will support innovation and investment in recycling and help new industries that manufacture products using recycled waste and create future jobs.

There’s also the Palaszczuk Government’s flagship Advance Queensland strategy.

Advance Queensland keeps turning good ideas into commercial reality.

We are backing business and industry to help give them an edge in a highly competitive world.

So, in this Budget, we are investing a further $123 million in backing our entrepreneurs, funding industry research fellowships and helping small to medium businesses innovate, grow and create jobs.

And, Mr Speaker, there’s the Industry Attraction Fund.

As well as supporting our home-grown businesses in the path to success we want to attract new businesses and knowledge industries from interstate and overseas.

I want these businesses, their ideas and above all their jobs to call Queensland home.

That’s why this Budget extends the Fund with $40 million over two years towards bringing interstate and international businesses here and helping locally-based businesses expand.

The Business Development Fund, which turns ideas into commercial reality, will also be extended with $40 million over the next two years.

And a further $20 million for the Jobs and Regional Growth Fund brings new funding to $100 million.

We want the new jobs in these new industries and businesses hiring skilled Queensland workers.

So, in this Budget, we are investing $175.5 million to help people return to the workforce through the Back to Work program.

And we will deliver a further $180 million in the Skilling Queenslanders for Work program to deliver more training opportunities and workforce participation.

4

Supporting small business

Like others in this Parliament, I grew up in a family that ran a small business.

My family felt the pressures, the strains, the setbacks, but also reaped the rewards.

I’m proud to be in a Government that backs small business.

We need to give employers the confidence to invest in the workforce they need to succeed.

That’s why today I am announcing that the 50 per cent payroll tax rebate scheme will be extended to June 2019 supporting up to 26,000 apprentices and trainees.

Our Buy Queensland approach also ensures local businesses, jobs and better social outcomes are all front and centre when taxpayer dollars are spent.

The ecoBiz program for small to medium businesses provides increased funding of $3.9 million over four years to help them identify and achieve savings and eco-efficiencies across energy, water and waste.

The challenge of moderate wage growth

Our economic plan – more infrastructure, better skills – will create jobs, lift demand for labour, and help support wages growth in the medium and longer term.

Mr Speaker, I was pleased to see the Fair Work Commission recently decided to increase the national minimum wage by 3.5 per cent.

But while we are more productive than we were just 10 years ago modest wage growth is putting households under strain.

Hard working Queensland families who battle through each day are not keeping up – something we simply can’t ignore.

This has a broader economic impact too.

Modest wage growth constrains growth in household income, one of the key drivers of household consumption.

As a result, employment and businesses suffer.

We need to see stronger private sector wage growth.

This Budget will make a difference.

Supporting growth throughout Queensland

It doesn’t matter where you are you must have the right transport and road infrastructure.

The alternative is more Queenslanders sitting in traffic away from their job or away from their kids – we either allow congestion to build or we build the infrastructure we need.

In a fast-growing state, investing in key infrastructure supports job creation, it boosts business confidence and it delivers the services Queenslanders need to maintain our way of life.    

5

Our delivery of the $5.4 billion Cross River Rail project recognises this.

Sadly, the Federal Government and those opposite don’t.

During the five-year construction period, Cross River Rail will support an average of 1,500 jobs each year, and up to 3,000 jobs in the most intensive year of construction.

I am pleased to say that today’s Budget also includes an investment of $21.7 billion over the next four years in the Queensland Transport and Roads Investment Program (QTRIP).

This is the third year in a row the Palaszczuk Government has made a record investment in road and transport infrastructure and is an increase of around $700 million on last year’s commitment.

Supporting regional Queensland

We know that Queensland is the most decentralised state in Australia with some of the country’s largest cities and important economic zones outside the South East corner.

We also know that we don’t have a strong Queensland without Strong Regions.

That’s why 65 per cent of our infrastructure spend this year is outside the Greater Brisbane area.

We will build key infrastructure like Rookwood Weir, Cairns Convention Centre and Townsville Stadium.

Through QTRIP we’re investing more than $800 million for works in our State’s West.

The Works for Queensland program supports job creating maintenance and minor works across our regions in partnership with local Councils.

This Budget provides more than $200 million over three years to extend the fund.

We also commit up to $34.6 million to continue drought relief this year. And more than $19 million over three years for rural and regional programs that support jobs and drive economic development.

Give all our children a great start

This Budget delivers for the economy and jobs, industry and regions.

It is a Budget of the head – but it is also a Budget of the heart.

And at the heart of any Labor Budget is education.

Education is fundamental to every public good that progressive politics values.

Equality of opportunity, fairness, skills for the economy today, rewarding work in the future, human progress and knowledge itself.

None of this is possible without leadership, imagination, investment and reform in schools.

This Budget makes a record education and training investment of more than $14 billion this year.

Since March 2015, we have employed more than 4,700 extra teachers and teacher aides.

6

We said we would employ 3,700 additional teachers over four years.

In this Budget we do it.

We will upgrade and improve schools across the State with a further $308 million to the Building Future Schools fund – bringing the total investment to $808 million.

There will be new high schools at Coomera, Yarrabilba, Ripley and Mango Hill, a new primary school at Ripley and a new special school at Caboolture.

We will also refurbish, upgrade or improve more than 48 state primary and high schools.

We will redevelop TAFE facilities in Townsville, Cairns, Mount Gravatt, Toowoomba, the Gold Coast and the Redlands with an investment of up to $85 million over three years.

Mr Speaker, even before their first day in the classroom, Queensland kids benefit from developing a love of reading from an early age.

As a parent, I know and understand that one of the greatest gifts you can give your child even before they enter the Prep classroom is a love of reading – it sets a child up for life.

But I also know that not every parent has the skills or resources to pass on this gift.

That’s why the First 5 Forever program – which links parents of kids under five to resources at public libraries across the State – matters so much.

So, in this Budget, we invest $20 million over four years to continue the First 5 Forever program’s vital work.

Keeping Queenslanders healthy

This is a Budget for all Queensland, and a Budget for all Queenslanders.

Our people, whatever their age, wherever they live, should be able to get the healthcare they need.

This Budget provides a record $17.3 billion operating Budget for Queensland Health, and $985 million in capital investments to deliver first-class health services and facilities for Queenslanders.

Since March 2015, this Government has been rebuilding frontline health services savaged under the LNP.

We have employed more than 4,800 extra nurses, 1,600 doctors and 370 ambulance officers.

But it’s not just enough to repair the LNP’s damage, we must create excellent and responsive services for Queenslanders when they need it most – when they need hospital care.

We are building better hospitals, health facilities and emergency departments.

… including in Hervey Bay and Gladstone, Roma, Blackall, Kingaroy and Maryborough;

… with planned redevelopments at Logan, Caboolture and Ipswich Hospitals;

7

… and a new adolescent mental health facility at the Prince Charles Hospital in Brisbane.

These investments are working.

Services are improving.

We are making the positive changes to help patients make the most of a modern healthcare system.

We said we would employ an additional 400 nurse navigators to help Queenslanders navigate the often complex system of tertiary health care.

This Budget does just that.

We said we would employ an extra 100 midwives to help birthing mothers with the life changing event of bringing a baby into this world.

This Budget does just that.

Keeping our communities safe

Mr Speaker, our frontline heroes work to keep our communities safe every day and every night.

This Budget gives Queensland more police, domestic violence officers and firefighters.

We said we would add 400 officers to areas of need across Queensland over the next four years.

This Budget does that.

In a world where keeping us safe requires cutting edge support, we are investing in a Police Security and Counter-Terrorism Command, training for 85 new counter terrorism officers and specialists, and building the Counter Terrorism and Community Safety Training Centre at Wacol.

In times of natural disaster, Queenslanders know they can count on our world-renowned emergency service workers.

So, in this Budget, I announce more than $103million to deliver on our election commitment of 100 additional firefighters over the next four years, and new firefighting equipment and upgraded emergency services facilities; this is to ensure that in our disaster-affected State our fire and emergency responses remain second to none.

Protecting the Great Barrier Reef

This Government knows we need to take action now to protect our environment for the future.

The Great Barrier Reef is a natural wonder of staggering beauty.

It is also an invaluable asset when it comes to our future economic prosperity.

The Reef must survive.

We must clean up the water running into the Reef and continually invest in the science and research that will help better protect the ocean.

8

That’s why this Budget makes a record investment of $330 million over five years to protect the Reef.

No greater asset needs our protection than our Great Barrier Reef.

That’s why the Palaszczuk Labor Government banned dumping of dredge spoil in the Caley Valley Wetlands and at sea within the World Heritage Area.

That’s why we’ve created the net-free free fishing zones – in Cairns, Rockhampton and Mackay – to protect sensitive eco-systems and prohibited port development within the Fitzroy River Delta.

That’s why we reinstated our nation-leading laws to stop tree clearing in Great Barrier Reef catchments and right across our State.

And that’s why we established the Great Barrier Reef Water Science Taskforce.

Future funding decisions to save the Great Barrier Reef will be steered by science – not poisoned by politics.

Growing tourism

The preservation of our State’s natural beauty is directly linked to the success of one of our economic powerhouses – tourism.

People from all over the world travel great distances to come here to enjoy our unique experiences and natural encounters that we, Queenslanders, have in our own backyard.

This Budget invests an additional $94.6 million over five years under the Growing Tourism, Growing Tourism Jobs initiative.

This includes more than $48 million for the Attracting Tourism Fund – which provides incentives to attract new international airline routes and cruise ships.

It includes $46 million for the Regional Tourism Infrastructure and Experience Development program and Outback Tourism Infrastructure Fund to help communities grow tourism.

A further $2.2 million over two years will expand and refurbish the Australian Workers Heritage Centre at Barcaldine.

There is no doubt that investment in tourism and events is vital for our future economic success and delivers long term benefits.

Our Commonwealth Games in April this year was so much more than 11 days of sport before a global audience.

It created the impetus for additional Government and private sector investments of more than $2.6 billion.

It will also leave a positive legacy of better transport, and better sports and community facilities that will last for decades.

In Brisbane, right now, we have game-changing developments that will not only generate jobs and support economic growth but fundamentally reshape our capital and position it as a modern, global destination of choice.

9

Queens Wharf, the proposed Eagle Street Pier, Howard Smith Wharves and Brisbane Live projects can build a city that is a beacon of sustainable progress in a modern economy.

We will work with the private sector every step of the way to see these projects to success.

Brisbane’s cultural precinct, already one of the best in the country, will be enhanced even further with $125 million towards a new theatre at the Queensland Performing Arts Centre.

It is the largest arts infrastructure investment since GOMA.

A responsive Government

Mr Speaker, Labor Governments help out those doing it tough.

We understand Queenslanders in need are feeling cost of living pressures.

Government has a responsibility to help and we will do just that.

As part of our commitment to reduce cost of living impacts on households and small business the Budget provides $5.6 billion in concessions – an increase of $200 million on last year.

And Labor Governments right past wrongs.

We will join the National Redress Scheme – a key recommendation of the Royal Commission into Institutional Responses to Child Sexual Abuse.

While no amount of money can ever return a lost childhood, our commitment of more than $500 million will support healing and recovery.

And Mr Speaker, we know we must continue the job of Reconciliation with Australia’s First Nations People and increase our efforts to close the gap in health, education and life outcomes between Indigenous and non-Indigenous Queenslanders.

Fundamental to closing the gap is a roof over your head.

Without that you can’t address poor health or literacy outcomes.

That’s why it was particularly heartless that the Federal Government decided to walk away from a 50-year tradition of funding housing in remote Indigenous communities in Queensland.

We will work hard to close the gap, supporting our Aboriginal and Torres Strait Islander communities.

And that’s why I announce that this Budget will invest $239 million to improve housing options for Aboriginal and Torres Strait Islander Queenslanders.

10

Conclusion

Mr Speaker, whether you are in Biloela or Brisbane, Caloundra or Cunnamulla, Lockhart River or Logan – this Budget delivers for all of Queensland.

We said we would build more infrastructure and deliver better services.

We said we would grow jobs and steer the economy through change.

We said we would deliver for the whole of Queensland and every Queenslander.

We said we had plans for education and health, community safety and communities in need, for the Great Barrier Reef and tourism.

This is a Budget for prosperity.

Today, we deliver for our economy’s future.

This is a Labor Budget.

Today, we deliver fairness.

This is a Queensland Budget.

Today, we deliver for Queenslanders.

I commend the Bill to the House.

11

Queensland Budget 2018-19  Budget Speech  Budget Paper No.1

Queensland Budget 2018-19

Budget Speech Budget Paper No.1

budget.qld.gov.au

Queensland Budget 2018-19

BUDGET STRATEGY AND OUTLOOK

Budget Paper No.2

budget.qld.gov.au

2018–19 Queensland Budget Papers

1. Budget Speech

2. Budget Strategy and Outlook

3. Capital Statement

4. Budget Measures

5. Service Delivery Statements

Appropriation Bills

Budget Highlights

The Budget Papers are available online at budget.qld.gov.au

© Crown copyright

All rights reserved

Queensland Government 2018

Excerpts from this publication may be reproduced, with appropriate

acknowledgement, as permitted under the Copyright Act.

Budget Strategy and Outlook

Budget Paper No.2

ISSN 1445-4890 (Print)

ISSN 1445-4904 (Online)

Budget Strategy and Outlook 2018-19

State Budget

2018-19

Budget Strategy and Outlook

Budget Paper No. 2

Budget Strategy and Outlook 2018-19

Contents

Overview		1
1	Economic plan – creating jobs and prosperity in a growing Queensland	7
1.1	Key elements of the economic plan	8
1.2	Increasing the economic opportunities available to Queenslanders	10
1.3	Enhancing the capacity of Queenslanders to access and capitalise on opportunities	18
1.4	Ensuring all Queenslanders share in the increased prosperity and quality of life	20
2	Economic performance and outlook	22
2.1	International conditions	23
2.2	National conditions	24
2.3	Queensland conditions and outlook	24
3	Fiscal strategy and outlook	34
3.1	Context	35
3.2	Key fiscal aggregates	35
3.3	Fiscal strategies	37
3.4	Achievement of fiscal principles	48
4	Revenue	50
4.1	2017-18 estimated actual	51
4.2	2018-19 revenue by category	52
4.3	2018-19 Budget initiatives	53
4.4	Queensland’s revenue trends	54
4.5	Taxation revenue	55

Budget Strategy and Outlook 2018-19

4.6	Grants	60
4.7	Royalty revenue	62
4.8	Sales of goods and services	66
4.9	Interest income	67
4.10	Dividend and income tax equivalent income	67
4.11	Other revenue	68
5	Expenses	69
5.1	2017-18 estimated actual	69
5.2	2018-19 Budget and out-years	70
5.3	Expenses by operating statement category	71
5.4	Operating expenses by purpose	80
5.5	Departmental expenses	81
6	Balance sheet and cash flows	84
6.1	Context	84
6.2	Balance Sheet	85
6.3	Cash flows	91
7	Intergovernmental financial relations	92
7.1	Federal financial arrangements	93
7.2	Australian Government funding to the states	95
7.3	Australian Government funding to Queensland	96
7.4	GST revenue payment	97
7.5	Payments to Queensland for specific purposes	99
7.6	State-local government financial relations	104
8	Public Non-Financial Corporations Sector	107
8.1	Context	108

Budget Strategy and Outlook 2018-19

8.2	Finances and Performance	115
9	Uniform Presentation Framework	123
9.1	Context	123
9.2	Uniform Presentation Framework financial information	123
9.3	Reconciliation of net operating balance to accounting operating result	133
9.4	General Government Sector time series	133
9.5	Other General Government uniform presentation framework data	135
9.6	Contingent liabilities	138
9.7	Background and interpretation of uniform presentation framework	139
9.8	Sector classification	141
9.9	Reporting entities	142
Appendix A: Concessions statement		145
A.1 Concessions summary		147
A.2 Concessions by agency		148
A.3 Concessions by entity – Government-owned Corporations		173
Appendix B: Tax expenditure statement		175
The tax expenditure statement		176
Discussion of individual taxes		178
Appendix C: Revenue and expense assumptions and sensitivity analysis		181
Taxation revenue assumptions and revenue risks		182
Royalty assumptions and revenue risks		183
Sensitivity of expenditure estimates and expenditure risks		184
Appendix D: Fiscal aggregates and indicators		185

Budget Strategy and Outlook 2018-19

Overview

The 2018-19 Budget delivers on the commitments made by the Palaszczuk Government and will deliver the infrastructure to create jobs and the services that our State’s growing population needs.

The key initiatives outlined in the 2018-19 Budget align with the Palaszczuk Government’s clear economic plan to drive economic growth, create more jobs and improve prosperity by:

• increasing the economic opportunities available to Queenslanders

• enhancing the capacity of Queenslanders to access and capitalise on these opportunities

• ensuring all Queenslanders share in the prosperity and improved quality of life these opportunities deliver.

Delivering infrastructure

With the State’s population growing over recent decades to more than five million, the Government’s $45.8 billion capital works program over the four years to 2021-22 will support the ongoing delivery and facilitation of key economic and social infrastructure to meet the needs of Queensland families, businesses and communities.

The Government’s substantial infrastructure investment directly generates significant employment during the construction phase. More importantly, it creates future jobs, encourages private sector investment and increases the productivity, efficiency and competitiveness of the State’s businesses and industries.

The $11.6 billion capital works program in 2018-19 is estimated to directly support more than 38,000 jobs.

Importantly, to meet the needs of Queensland’s growing population, the Government’s 2018-19 capital works program includes a $4.9 billion investment in roads and transport infrastructure. This includes an allocation of $733 million for the Cross River Rail Delivery Authority in 2018-19 to continue to progress the planning, procurement and development associated with the $5.4 billion Cross River Rail project. In addition, $200 million will be spent to widen the Bruce Highway from four to six lanes between Caloundra Road and the Sunshine Motorway and $22 million in 2018-19 will be spent on two new jointly-funded M1 Pacific Motorway projects. These two new projects have a total cost of approximately $1.8 billion.

The 2018-19 capital program also includes significant capital purchases related to health ($985.5 million) and education ($674.3 million), as well as substantial investment in housing, justice and public safety infrastructure. Significant capital investment in the energy and water portfolios in 2018-19, of $2.2 billion and $277 million respectively, will help deliver cost effective, safe, secure and reliable energy and water supply across the State.

Other highlights of the 2018-19 capital program include:

• $534.3 million to continue the Toowoomba Second Range Crossing project

• $115 million to construct the Mackay Ring Road (Stage 1)

1

Budget Strategy and Outlook 2018-19

• $125.2 million for new classrooms and other infrastructure in state secondary schools to accommodate six full cohorts in 2020

• $94.5 million to further address enrolment growth pressures in state schools as part of the Building Future Schools fund

• $28.7 million as part of $679 million for the Building Better Hospitals program, to redevelop Logan, Caboolture and Ipswich hospitals, commence planning and business case development for the Wide Bay Burnett region, and refurbish three Cancer Council Queensland lodges

• $339.1 million towards the construction and upgrade of the social housing stock.

Across the State, the Government’s investment in public infrastructure will drive transformative change, encourage private investment and make our communities better places to live.

Skill and jobs creation programs

The Palaszczuk Government remains committed to ensuring all Queenslanders have the skills and opportunities to participate and prosper in the State’s economy.

The formation of the Department of Employment, Small Business and Training demonstrates this commitment and creates significant opportunities to achieve policy and service delivery synergies in driving small business growth and enhancing the employment, skills and training opportunities available to Queenslanders.

The $369 million Back to Work initiative is designed to give Queensland employers the confidence to hire eligible jobseekers. Support payments of up to $20,000 are available for eligible employers, with funding committed across regional Queensland and targeted areas of South East Queensland for applications received by 30 June 2020.

The Skilling Queenslanders for Work initiative continues to be a key element of the Government’s focus on employment, training and skills development, with a further $180 million committed over three years in the 2017-18 Mid-Year Fiscal and Economic Review. Through a suite of targeted skills and training programs, this funding supports skills development, training, and job opportunities for unemployed, disengaged or disadvantaged Queenslanders.

Increasing frontline services

This Budget delivers the services that Queenslanders rely on. Since March 2015, an additional 3,634 teachers and 1,135 teacher aides have been employed to provide our children the best possible start. As part of the Government’s focus on ensuring effective and better delivery of health services an additional 1,605 doctors, 4,828 nurses, and 1,488 health practitioners, professionals and technical staff have been employed. An additional 376 ambulance paramedics and 302 police officers have also been employed.

In addition to the increase in frontline services over the last three years, the Palaszczuk Government has committed to employing an additional 3,700 teachers over the next four years at an estimated cost of $1 billion. Further, consistent with its election commitment, the Government will add 3,500 new nurses, midwives and nurse navigators over four years.

The 2018-19 State Budget delivers significant funding for a range of new and ongoing initiatives.

2

Budget Strategy and Outlook 2018-19

These include:

• an additional $171.9 million over four years for 400 police officers in high priority areas and $55.1 million over four years for 85 counter-terrorism officers and operational specialists and to establish a Security and Counter-Terrorism Command. This builds on the investment in the 2017-18 Budget for an additional 30 counter-terrorism police officers and 20 police officers, bringing total additional frontline police and operational specialists in priority areas across the State to 535

• funding of $29.5 million over four years for an additional 100 firefighters and 12 fire communication officers to help the community prevent, prepare for, respond to and recover from the impact of fire and emergency events.

Promoting private sector investment

Driving and facilitating private sector investment is crucial, given the private sector accounts for more than 70% of total investment in the economy and supports 83% of Queensland jobs. Through its flagship Advance Queensland initiative totalling $650 million, the Queensland Government maintains a strong focus on fostering innovation and entrepreneurship to enable Queensland businesses to adapt rapidly to the ever-changing global business environment.

The Palaszczuk Government is also delivering a range of industry attraction and facilitation services to promote private sector investment. The 2018-19 Budget provides additional funding for both the Advanced Queensland Industry Attraction Fund and the Jobs and Regional Growth Fund, bringing the combined total funding for these programs to $255 million.

Protecting the Great Barrier Reef

Queensland’s Great Barrier Reef is not only one of the natural wonders of the world, but one of the major reasons local, interstate and international visitors come to Queensland. More than 18 million visitors travel to the broader Great Barrier Reef region. To support the reef and manage the impacts of climate change, the Palaszczuk Government is investing $330 million over five years to protect our national treasure and ensure it continues to provide economic benefits now and into the future. Protecting the Great Barrier Reef is vital not just for the environment and tourism, but also to meet international commitments.

The 2018-19 State Budget allocates $40 million in new funding to significantly increase our State’s financial contribution to protecting the reef. Part of this $40 million will include $26 million in extra funding over the next four years for the Joint Field Management Program for reef protection measures. This is on top of the more than $35 million already invested in this program. In addition, a further $13.8 million over the next four years will be allocated to extend the Queensland Reef Water Quality Program to support the transition of graziers, and sugarcane and banana growers to improved practices through access to professional advice.

Waste Strategy – Driving business investment, innovation and jobs

The Queensland Government’s comprehensive waste management strategy, underpinned by a waste disposal levy, will be instrumental in changing waste management practices in the State.

By discouraging the interstate transport of waste and encouraging alternatives to disposal of waste to landfill, the waste disposal levy will significantly boost certainty for investment in job-creating reuse, recycling, bioproducts and waste to energy industries.

3

Budget Strategy and Outlook 2018-19

Proceeds from the waste levy will be used for waste programs, environmental priorities and community purposes. In particular, $100 million will be allocated over three years to support Queensland’s resource recovery and recycling industry through the Resource Recovery Industry Development Program. The program will facilitate private sector and local government projects delivering innovative solutions to the problem of waste going to landfill and will create jobs in emerging industries.

In order to avoid direct costs to households from the introduction of the waste levy, the Government will provide an annual advance on levy charges to those local governments that dispose of municipal waste in the levy zone. In 2018-19, $32 million has been provided for this purpose.

A recent independent study has highlighted the significant employment and economic benefits resulting from the waste strategy. The study found that the introduction of a waste levy will promote a reduction of waste generation and increase the diversion of waste to higher-value waste recovery and recycling industries. Combined with other key elements of the waste strategy, the levy will support new jobs in the waste industry over the long-term.

Economic Outlook

Overall growth in the Queensland economy is expected to strengthen to 2³⁄₄% in 2017-18, reflecting further improvement in domestic demand as business spending has rebounded along with a recovery in coal exports following Severe Tropical Cyclone (STC) Debbie.

Growth in gross state product (GSP) is forecast to accelerate further to 3% in 2018-19, with household consumption gaining some momentum and a contribution to growth from the trade sector as imports ease.

While domestic activity is forecast to strengthen in 2019-20 and support stronger jobs growth, it will also boost imports. Combined with a moderation in export growth, this is expected to constrain the overseas trade sector’s contribution to growth and result in overall growth easing to 2³⁄₄% in 2019-20. From 2020-21, Queensland GSP is expected to grow by 2³⁄₄% per annum, consistent with the State’s long-run potential.

While employment growth has eased in early 2018, the stronger than expected gains in late 2017 means growth over the year to June quarter 2018 is estimated to be 2³⁄₄%, the strongest jobs growth in a decade.

Employment growth is expected to return to more sustainable rates of 1¹⁄₂% in 2018-19 and 1³⁄₄% in 2019-20, when it will be stronger than that forecast nationally. While designed to help meet the demands of the State’s growing population, the Palaszczuk Government’s $45.8 billion capital works program will also provide considerable support to employment in Queensland across the forecast period.

Additional jobseekers encouraged by stronger employment growth has seen the participation rate rise sharply and the unemployment rate stabilise in the short-term, with the unemployment rate forecast to remain at 6¹⁄₄% in June quarter 2018 and 2019. However, stronger domestic activity is expected to see the unemployment rate fall to 6% by June quarter 2020.

4

Budget Strategy and Outlook 2018-19

Overview Table 1 Queensland economic forecasts/projections¹

Actual

Est. Act.

Forecasts

Projections

2016-17

2017-18

2018-19

2019-20

2020-21

2021-22

Gross state product2

2.5

23⁄4

3

23⁄4

23⁄4

23⁄4

Nominal gross state product

9.3

51⁄2

4

33⁄4

41⁄2

43⁄4

Employment3

1.8

23⁄4

11⁄2

13⁄4

13⁄4

2

Unemployment rate4

6.2

61⁄4

61⁄4

6

6

53⁄4

Inflation5

1.7

13⁄4

2

21⁄2

21⁄2

21⁄2

Wage Price Index5

1.9

21⁄4

21⁄2

3

3

3

Population5

1.5

13⁄4

13⁄4

13⁄4

13⁄4

13⁄4

Notes:

1. Unless otherwise stated, all figures are annual percentage change.

2. Chain volume measure (CVM), 2015-16 reference year.

3. Through-the-year growth rate to the June quarter (seasonally adjusted).

4. Seasonally adjusted rate for the June quarter.

5. Annual percentage change, year-average.

Sources: ABS 3101.0, 6202.0, 6345.0, 6401.0 and Queensland Treasury.

Fiscal Outlook

The 2018-19 Budget supports the delivery of the Government’s election commitments and provides additional policy measures focussed on supporting the delivery of services to the Queensland community. The election commitments are funded from reprioritisation measures and the targeted revenue measures announced during the 2017 election.

The Government is committed to delivering the services and infrastructure the community needs in a financially sustainable manner. Net operating surpluses are projected in each year of the forward estimates, despite an expectation that revenue will decline in 2018-19 driven by a substantial reduction in funding from the Australian Government. Operating expenses are forecast to grow at a sustainable rate, averaging 2.9% per annum over the five years to 2021-22.

A $45.8 billion capital program over four years, including $33.2 billion in the General Government sector, will deliver infrastructure that supports economic growth, enhances productivity, provides employment opportunities and manages the pressures of strong population growth. This level of investment will be partly funded through borrowings. Even so, General Government borrowings are expected to be lower in each year of the forward estimates than projected in the 2017-18 Budget. In 2021-22, it is expected the General Government borrowings will remain below the peak level reached in 2014-15.

The Government will continue to provide additional funds for infrastructure investment while responsibly managing debt. This is being achieved while retaining strategic assets, such as electricity, port, rail and water businesses, in public ownership.

5

Budget Strategy and Outlook 2018-19

Overview Table 2 General Government Sector – key fiscal aggregates¹

	2016-17 Actual2 $ million		2017-18 MYFER $ million			2017-18 Est. Act. $ million			2018-19 Budget $ million			2019-20 Projection $ million			2020-21 Projection $ million			2021-22 Projection $ million
Revenue		56,194		56,464			58,259			57,738			58,835			59,939			62,269
Expenses		53,373		55,980			56,747			57,590			58,675			59,829			61,579
Net operating balance		2,821		485			1,512			148			160			110			690
PNFA3		4,634		4,965			4,905			5,927			7,557			7,396			7,081
Fiscal balance		536		(1,681	)		(604	)		(3,033	)		(3,881	)		(3,400	)		(2,636	)
Net Worth		194,936		198,268			199,686			202,636			205,775			208,101			210,515
Borrowing		33,260		32,502			31,367			32,311			35,861			39,588			42,290
Borrowing (NFPS)4		71,904		71,222			69,501			70,871			75,214			79,750			83,093

Notes:

1. Numbers may not add due to rounding. Bracketed numbers represent negative amounts.

2. Reflects published actuals.

3. PNFA: Purchases of non-financial assets.

4. NFPS: Non-financial Public Sector.

6

Budget Strategy and Outlook 2018-19

1 Economic plan – creating jobs and prosperity in a growing Queensland

Features

• The Palaszczuk Government’s commitment to improve the quality of life and living standards enjoyed by Queenslanders continues to be underpinned by its clear economic plan to drive economic growth, create more jobs and improve prosperity.

• The key initiatives outlined in the 2018-19 Budget, including the suite of election commitments, will continue to drive economic growth and create jobs by:

• increasing the economic opportunities available to Queenslanders

• enhancing the capacity of Queenslanders to access and capitalise on these opportunities

• ensuring all Queenslanders share in the prosperity and improved quality of life these opportunities deliver.

• To create the economic growth and job opportunities needed to support Queensland’s growing population, the Government’s economic plan includes a $45.8 billion investment in productivity-enhancing capital works over the four years to 2021-22.

• In addition to flagship projects such as the Cross River Rail, Cairns Convention Centre, upgrades to the M1 motorway and Townsville Stadium, a range of other essential regional projects will be fast-tracked through the Growth Area and Regional Infrastructure Investment Fund while building key social infrastructure to support improved health and education outcomes.

• Ongoing and increased funding for key employment and training programs will help provide Queensland jobseekers, including the State’s youth, with the skills and capabilities to access additional job opportunities.

• Meanwhile, significant funding for initiatives to further protect the Great Barrier Reef and the environment will ensure current and future generations of Queenslanders continue to enjoy the increased prosperity and quality of life that has attracted almost two million migrants to the State over the past three decades.

• The $11.6 billion capital works program in 2018-19 outlined in this Budget is estimated to directly support more than 38,000 jobs in 2018-19, as well as support significant ongoing private sector investment and employment over the short, medium and long term.

7

Budget Strategy and Outlook 2018-19

1.1 Key elements of the economic plan

The Queensland Government remains committed to creating increased opportunities and prosperity for all Queenslanders. As outlined in each of the Government’s previous budgets since 2015-16, this commitment is underpinned by a clear and comprehensive economic plan to drive economic growth, create more jobs and enhance living standards.

In line with the key objectives of the Government’s economic plan, Queensland has recorded significantly improved economic outcomes in recent years, with economic growth expected to strengthen to 2³⁄₄% in 2017-18 and strengthen further to 3% in 2018-19. This growth has also directly resulted in increased employment opportunities across the State, with more than 83,500 new jobs created in Queensland over the 12 months to April 2018.    

Despite these achievements, an ongoing focus on building the productive capacity and resilience of the State’s traditional, emerging and new industries is critical to maintain this economic momentum and support the ongoing prosperity of Queensland families, communities and regions.

As a modern, open trading economy, Queensland continues to be susceptible in the short to medium term to changes in international economic conditions.    

Some key areas of regional Queensland continue to successfully transition to the post mining and LNG investment boom economy, while some regions and industries are still recovering from the impacts of natural disasters and continue to be impacted by drought.

With the State’s population growing over recent decades to more than five million, ongoing delivery and facilitation of key economic and social infrastructure, as well as essential social services, will remain a key element of the Government’s plan to drive ongoing improvements in the quality of life enjoyed by families and communities across the State. Further, longer term global trends, such as climate change, the rapid pace of technological advancements and demographic change, will continue to present both risks and opportunities.

A continued focus on building a strong, resilient and flexible economy and labour force is critical to ensure Queensland businesses, industries and regions are capable of responding to any challenges and capitalising on any opportunities as they arise now and in the future.

The 2018-19 Budget continues to reinforce the Government’s commitment to driving sustainable economic growth and improving employment outcomes.    

The $11.6 billion capital works program in 2018-19 outlined in this Budget is estimated to directly support more than 38,000 jobs in 2018-19, as well as support significant ongoing private sector investment and employment over the short, medium and long term. Key elements of the Budget will also help facilitate growth of private sector business investment and the increased participation of Queensland’s youth in employment, education and training.

Given the recent strong jobs growth and increased labour force participation in Queensland, the Government’s economic plan will not only continue to support overall income growth but should also help support wages growth in the medium to longer term, as the demand for labour intensifies and any spare capacity in the labour market is utilised.

8

Budget Strategy and Outlook 2018-19

Building on the economic plan outlined in the previous three State budgets, the remainder of this chapter outlines how key initiatives, including new policies and programs outlined in the 2018-19 Budget will contribute to achievement of three key elements of the Government’s economic plan:

• increasing the economic opportunities available to Queenslanders

• enhancing the capacity of Queenslanders to access and capitalise on these opportunities

• ensuring all Queenslanders share in the prosperity and improved quality of life these opportunities deliver.

Figure 1.1 Driving jobs and prosperity through the economic plan

9

Budget Strategy and Outlook 2018-19

1.2 Increasing the economic opportunities available to Queenslanders

The prosperity and well-being of Queenslanders is closely linked to the economic and employment opportunities that are available to them. The creation of increased opportunities also helps provide the means for individuals and families to fully realise their economic potential through the application of their capabilities, skills and talents.

Given the private sector supports almost five out of every six jobs in Queensland, an essential element of the Government’s economic plan is to drive private sector investment and business growth, thereby supporting and creating new job opportunities.

In particular, the economic plan includes a strong focus on enhancing the employment, education and training opportunities available to Queensland’s youth, ensuring they can take advantage of current job opportunities as well as being better equipped to pursue the jobs of the future.

1.2.1 Delivering productive infrastructure

The Government plays a key role in creating job opportunities by investing, facilitating, and delivering productive infrastructure, particularly in the context of the State’s growing population.

Infrastructure investment directly generates significant employment across the State during the construction phase. However, even more importantly, it creates future jobs and investment prospects by expanding the long-term productive capacity of the economy and helping make Queensland businesses more productive, efficient and competitive.

As Queensland transitions to a more innovative, diverse and productive economy, it is vital that infrastructure investments maximise opportunities and provide long-term sustainable benefits to Queenslanders.

The Palaszczuk Government is investing $45.8 billion through the capital works program over the four years to 2021-22. The program includes much needed additional investments in roads, rail, water, energy, hospitals, schools and digital infrastructure projects that will meet the demands of our fast-growing state.

The capital works program includes ongoing Government investment in a number of significant projects including Cross River Rail, upgrades to the M1 motorway and the Bruce Highway and the Toowoomba Second Range Crossing project.

Significant funding related to several of these projects has also been committed beyond the forward estimates period to complete delivery of this transformative infrastructure.

The $11.6 billion capital works program in 2018-19 is estimated to directly support more than 38,000 jobs.

The 2018-19 capital program includes a $4.9 billion investment in roads and transport infrastructure, significant capital purchases related to health ($985.5 million) and education ($674.3 million) and significant capital investment in energy and water of $2.2 billion and $277 million respectively.

10

Budget Strategy and Outlook 2018-19

Some key highlights of the 2018-19 capital works program include:

• $733 million to continue to progress the planning, procurement and delivery of the Cross River Rail project

• $200 million to widen the Bruce Highway from four to six lanes between Caloundra Road and the Sunshine Motorway

• $534.3 million to continue the Toowoomba Second Range Crossing project

• $115 million to construct the Mackay Ring Road (Stage 1)

• $89.2 million towards a new public transport ticketing system

• $125.2 million for new classrooms and other infrastructure in state secondary schools to accommodate six full cohorts in 2020

• $94.5 million to further address enrolment growth pressures in state schools as part of the Building Future Schools fund

• $339.1 million towards the construction and upgrade of the social housing stock.

Across the State, the Government’s investment in public infrastructure will drive transformative change, encourage private investment and make our communities better places to live.

Around $5.6 billion of the capital works program in 2018-19 will help deliver key economic and social infrastructure in regional Queensland, estimated to directly support more than 19,000 jobs across Queensland’s important regional economies in 2018-19.

The 2018-19 Budget provides for a $176 million State contribution towards the construction of the Rookwood Weir near Rockhampton. This is in addition to other regionally significant economic infrastructure projects previously announced by the Government.

This Budget also allocates $40 million over 2 years towards the newly established Growth Area and Regional Infrastructure Investment Fund to help fast-track essential regional infrastructure.

Importantly, the Government’s capital works program and the productivity benefits it delivers are not limited to projects historically classified as ‘economic’ infrastructure. Investment in key social infrastructure, such as hospitals and schools, benefits individuals and families by improving health and educational outcomes, thereby increasing the capacity of Queenslanders to participate in the economy and to capitalise on the knowledge-based, high value added jobs of the future.

This Budget features a number of key social infrastructure investments, including a $985.5 million capital program for the health portfolio in 2018-19 to accommodate growing demand for health services, increase service quality and to facilitate innovative and new service delivery models. The Budget allocates an additional $308 million towards Building Future Schools, taking total funding to $808 million. The Government is also allocating $966.3 million over the forward estimates towards the $1.8 billion Queensland Housing Strategy 2017-2027.

Additional funding of $135 million has also been allocated to provide infrastructure grants to non-state schools to meet the needs of Queensland’s growing population.

The Budget also delivers $125 million towards the construction of a $150 million 1,500 to 1,700 seat performing arts venue at the South Bank Cultural Precinct. This project will help attract new visitors and support the development of Queenslanders engaged in the performing arts industry.

11

Budget Strategy and Outlook 2018-19

Box 1.1 Population growth – a key driver of economic growth and jobs

Population growth has been a key driver of economic growth and job creation in Queensland over recent decades. From a population of only two million in May 1974, Queensland’s population has grown to reach five million in May 2018, according to recent population estimates released by the Queensland Government Statistician’s Office.

This represents average annual population growth of 2.1% over that period, compared with only 1.2% growth in the rest of Australia.

Notably, overseas and interstate migration were both major drivers of the State’s stronger growth over recent decades. Net migration of nearly 1.9 million people to Queensland has accounted for around 60% of the State’s population growth since 1974 as shown in Table 1.1.

Table 1.1 Components of Queensland population growth

			Components of change
Date	Queensland Population		Natural increase		Net overseas migration		Net interstate migration		Total population growth1
May 1974		2,000,000
Feb 1992		3,000,000		387,000		183,000		406,000		1,000,000
May 2006		4,000,000		367,000		249,000		431,000		1,000,000
May 2018		5,000,000		410,000		440,000		150,000		1,000,000
Total increase				1,164,000		872,000		987,000		3,000,000

Note:

1. Includes intercensal discrepancy

Source ABS 3101.0, 3105.0.65.001 and Queensland Treasury

Migration is a key driver of economic growth in Queensland:

• migration increases the demand for goods and services, supporting the growth of local businesses and industries, flowing through to increased investment and increased demand for government services

• it increases the number of people available to work

• it helps support increased productivity through the increased productivity-enhancing infrastructure required to support the population growth.

While net interstate migration contributed only 150,000 (15%) to Queensland’s total population growth from 2006 to 2018, the direct result of interstate migration is significant over the period:

• The size of Queensland’s economy (i.e. gross state product) in 2017-18 is around $8.8 billion greater than it otherwise would have been, consisting of:

• $5.1 billion in additional household consumption

12

Budget Strategy and Outlook 2018-19

• $2.3 billion in additional public and private sector investment

• $1.6 billion in additional government consumption

• $2.5 billion in additional exports, offset by $2.8 billion in additional imports.

• The total number of jobs in Queensland in 2017-18 is estimated to be 72,000 greater than it would have been in the absence of interstate migration over this period.

• The economic benefits of interstate migration were shared across all Queensland industries. However, trade-exposed industries such as mining and manufacturing, and labour-intensive industries such as accommodation and food services, health and retail trade, have tended to benefit more than other industries, reflecting the additional supply of labour available.

• The additional labour supply and increased workforce participation means, in the short-term, a reduction in the unemployment rate can be limited.

While population growth has historically been a key factor underpinning economic growth in Queensland, it will also continue to be an important contributor to growth in the future. In particular, as outlined in Chapter 2, the State’s population growth is forecast to strengthen to 1³⁄₄% in 2018-19 and 2019-20, supported by a strengthening in net interstate migration.

Continued investment in productive infrastructure is important to ensure ongoing provision of essential services to manage the pressures related to a growing population and to ensure Queenslanders continue to benefit from the increased growth and opportunities resulting from the State’s ongoing population growth.

1.2.2 Driving business growth, investment and exports

Queensland faces ongoing and increasing competition for investment, as capital increasingly becomes more mobile and the global economy becomes more interconnected. Therefore, it is critical that Queensland maintains a competitive business environment which continues to attract and support private investment.

Driving and facilitating private sector investment is crucial, given the private sector accounts for more than 70% of total investment in the economy, in addition to supporting 83% of Queensland jobs.

The Palaszczuk Government is delivering a range of industry attraction and facilitation services to assist industry to establish or expand their operations in Queensland. In the 2018-19 Budget an additional $40 million is provided for the Advance Queensland Industry Attraction Fund and $20 million for the Jobs and Regional Growth Fund, bringing the total funding committed to these programs to $105 million and $150 million, respectively.

A range of initiatives in the 2018-19 Budget will also directly support the growth of key Queensland export sectors, including an additional $94.6 million to support growth of the tourism sector under the Growing Tourism Jobs initiative.

13

Budget Strategy and Outlook 2018-19

Importantly, ongoing regulatory reform is a key component of the Government’s economic plan, with red tape reduction increasing business productivity and competitiveness, incentivising greater private sector investment, thereby, ultimately providing an overall boost to employment and economic growth.

In particular, the Government remains committed to cutting costs for the State’s more than 437,000 small to medium sized businesses (as at 2016-17), which employ around two thirds of all Queensland workers. The Budget provides increased funding of $3.9 million to continue delivering the ecoBiz program that helps small to medium sized businesses identify and achieve financial savings and eco-efficiency across energy, water and waste.

Building on the Government’s regulatory reform efforts focused on small business, including establishment of the Better Regulation Taskforce, the Government is progressing development of a Business Impact Statement tool, as well as the election commitment to establish small business consultation panels. These initiatives will help ensure greater consideration of, and consultation with, small business stakeholders when developing policy and regulation.

Chart 1.1 Queensland business investment, private and public sector shares, 2016-17

Source: ABS 5206.0 and 8752.0

14

Budget Strategy and Outlook 2018-19

Box 1.2 Waste Strategy – driving business investment, innovation and jobs

On 20 March 2018, the Queensland Government announced the development of a comprehensive waste management strategy underpinned by a waste disposal levy.

The waste disposal levy will be instrumental in changing waste management practices in Queensland. By discouraging the disposal of waste to landfill, it will significantly boost certainty for investment in job-creating reuse, recycling, bioproducts and waste-to-energy industries.

By bringing Queensland into line with other States, the levy will also remove a key incentive for cross-border transport of waste to local landfills.

The waste strategy and levy are being introduced in a period of changing international policies relating to acceptance of recycling material, including China’s decision to tighten quality standards for imported recyclable material.

Key elements of the Queensland Waste Strategy

The levy will commence in the first quarter of 2019 and will apply to 38 local government areas, covering more than 80% of the State’s population. The waste disposal levy will apply to all general waste streams.

The levy will be set at $70 per tonne for general waste, increasing by $5 per annum. Proceeds from the levy will be used for waste programs, environmental priorities and community purposes.

There will be $100 million allocated over three years to support Queensland’s resource recovery and recycling industry through the Resource Recovery Industry Development Program. The program will facilitate private sector and local government projects delivering innovative solutions to the problem of waste going to landfill and create jobs in emerging industries.

The Government will provide an annual advance on levy charges to those local governments that dispose of municipal waste in the levy zone. In 2018-19, $32 million has been provided for this purpose. This will avoid direct costs to households from introduction of the waste levy. Between 2018-19 and 2021-22 it is expected that over 70% of revenue generated through the waste levy will be allocated to advance payments to councils, scheme start-up and operational costs, industry programs and other environmental priorities. Surplus revenue from the levy will benefit the entire Queensland community by providing funding for schools, hospitals, transport infrastructure and frontline services.

Economic and employment impacts

There are significant employment and economic impacts resulting from an effective waste strategy, including a waste levy on landfill disposal.

15

Budget Strategy and Outlook 2018-19

A recent independent study highlighted the relationship between the introduction of a waste levy and other key elements of a waste strategy with increasing waste diversion rates, business investment, innovation and jobs in the recycling sector.

Based on experience in other jurisdictions, both nationally and internationally, there is potential for Queensland to achieve higher recovery rates and derive the associated business investment, innovation and employment benefits.

In particular, the report indicated that the introduction of a waste strategy and waste levy in Queensland should play an important role in enabling these benefits to Queenslanders from higher-order resource recovery opportunities in the future.    

The study also found that introduction of a waste levy will promote a reduction in waste generation and increase the diversion of waste to higher-value waste recovery and recycling industries.

The introduction of a levy in Queensland at $70 per tonne, combined with other key elements of the waste strategy, will support new jobs in the waste industry over the long-term.

The report also indicated that the introduction of a waste levy should result in a significant reduction of interstate waste being transported to Queensland.

1.2.3 Encouraging innovation – Advance Queensland

Innovation is one of the key drivers of growth and job creation by facilitating economic transformation and boosting business competitiveness.

Through its flagship Advance Queensland initiative totalling $650 million, the Queensland Government maintains a strong focus on fostering innovation and entrepreneurship to enable Queensland businesses to adapt rapidly to the ever-changing global business environment. The 2018-19 Budget provides increased funding of $50 million over five years for key Advance Queensland programs, including the Ignite Ideas Fund and Industry Research Fellowships. The funding also includes an extension to ‘The Precinct’, Queensland’s flagship hub for start-ups, the Clem Jones Centre for Ageing and Dementia Research and a range of programs to drive and scale innovation in Queensland.

The 2018-19 Budget also provides increased funding of $40 million over 2 years to the Business Development Fund to support emerging and high growth innovative Queensland businesses to commercialise their ideas by co-investing with experienced venture capital firms and investors.

The Palaszczuk Government’s continued focus on encouraging innovation is yielding tangible benefits. Advance Queensland programs are backing over 3,000 innovators, whose projects will drive over 11,000 jobs. Engagement and involvement across the State has been high, with over 60,000 attendees at Advance Queensland events, 57% of which were held in regional Queensland.

16

Budget Strategy and Outlook 2018-19

Significant achievements to date include:

• providing over 200 small and medium sized businesses with opportunities to commercialise market ready innovative ideas under the Ignite Ideas Fund, helping them grow and compete in a global market

• attracting over 35 international start-ups to Queensland through the Hot DesQ program

• developing roadmaps and action plans for a range of industry sectors, including Biofutures and Biomedical and Life Sciences, to promote knowledge-based jobs and the economy of the future

• establishing the Queensland Genomics Health Alliance to address the challenge of translating genomics data into meaningful clinical care to improve the health of our community.

1.2.4 Protecting and utilising our natural assets

Queensland’s natural resource endowments provide significant economic opportunities to Queenslanders and a key plank of the Government’s economic plan has been to ensure appropriate protection and sustainable use of these valuable assets.

Around 80% of Queensland’s land area is utilised for agricultural purposes, and the State’s mineral producers exported coal, LNG and other minerals worth more than $56 billion in the year to March 2018. Meanwhile, Queensland’s comparative strengths in solar, wind and biofuels have also seen significant growth in the renewable energy sector in recent years.

Queensland’s beaches, national parks and Great Barrier Reef continue to attract visitors from across Australia and around the world, who spent 140 million visitor nights in the State in 2017, up 25% since 2011.

Clearly, one of Queensland’s most significant natural resources and tourist attractions is the world renowned Great Barrier Reef. To protect this vital natural asset, the Queensland Government has committed substantial resources to improving water quality in the catchment to improve long-term sustainability. The Queensland Reef Water Quality Program provides a total of $330 million over a five-year investment plan to address all land-based sources of water pollution.

In addition to this prior commitment, the 2018-19 Budget provides $26 million in 2018-19 over the next four years for the Great Barrier Reef Joint Field Management Program, and a total of $13.8 million to help agricultural producers transition to new minimum standards designed to protect the reef.

In line with the Government’s ‘Saving Habitat, Protecting Wildlife and Restoring Land’ commitment, the Government has committed to establishing its flagship Land Restoration Fund (LRF).

The LRF will aim to support and develop Queensland’s emerging carbon farming industry by investing in projects that will deliver not only carbon reduction outcomes, but also other environmental, economic, and social co-benefits for Queenslanders. The Government will act as a cornerstone investor by providing seed capital of $500 million and the LRF will seek to leverage other sources of investment including from private and philanthropic sources.

17

Budget Strategy and Outlook 2018-19

The Fund complements a range of other initiatives being delivered, such as the $50 million Solar Thermal Plant Capital Contribution, to reduce Queensland’s contribution to climate change.

The Government is also implementing a range of policies to ensure our valuable mineral resources are managed sustainably and that their extraction brings economic and employment benefits to Queenslanders. Delivering on its election commitment, the Government has released more than 6,000 square kilometres of land for gas exploration for domestic use only to deliver more gas for domestic consumers to ease pressure on gas-dependent manufacturing industries.

1.3 Enhancing the capacity of Queenslanders to access and capitalise on opportunities

Ongoing changes in the State’s industry structure, as it continues to transition to a more knowledge intensive and services based economy, combined with technological change and other factors, have seen a significant shift over recent decades in the types of jobs and the skills needed to drive economic activity.

Most notably, strong growth in community and personal service workers has seen that sector’s proportion of total employment double between 1988 and 2018, while professionals now account for around one in every five jobs in Queensland.

Chart 1.2 Queensland employment share by occupation

Source: ABS 6291.0.55.003

18

Budget Strategy and Outlook 2018-19

1.3.1 Investing in skills for Queenslanders

The flexibility and adaptability that the State’s workforce has displayed over many decades will need to continue for Queensland to stay along a path of strong and sustainable growth that delivers higher living standards for all Queenslanders.

In recognition of this challenge, the Government’s economic plan has a strong focus on investing in training opportunities for Queensland workers and jobseekers to gain skills to seamlessly transition into new roles, engage in new types of work and continue contributing to the economy.

This includes training and employment programs targeted at improving short to medium term outcomes, but also extends to broader education focused policies aimed at maximising Queensland’s human capital in the long-run.

The 2018-19 Budget builds on the success of the Back to Work program, which has successfully given Queensland employers the confidence to take on new employees and grow their businesses, through increased funding of $20.5 million to give employers in targeted areas of South East Queensland access to employer support payments with applications open to 30 June 2020.

The Payroll Tax Apprentice and Trainee Rebate is a key initiative which supports the ongoing development of Queenslanders’ skills, particularly for the State’s youth. The rebate assists employers grow their businesses while also helping to build the stock of qualified and skilled Queenslanders.

The 2018-19 Budget includes a commitment of $26 million to extend the higher 50% payroll tax rebate for a further 12 months to June 2019, which is expected to support the hiring of up to 26,000 apprentices and trainees throughout the year.

The State’s disadvantaged jobseekers are another key focus of the Government’s employment and training policy agenda, with the Skilling Queenslanders for Work initiative providing opportunities for tens of thousands of jobseekers in cohorts who have historically faced substantial labour market challenges.

Following increased investment of $180 million in the 2017-18 Mid Year Economic and Fiscal Review, the Government’s six-year investment in Skilling Queenslanders for Work will now total $420 million by 2020-21.

Given the changing nature of skills requirements in the 21st century global economy, it is essential that individuals are equipped with the entrepreneurial and digital skills needed by innovative businesses and emerging industries.

Recognising the importance of early childhood education, the 2018-19 Budget also provides $20 million over four years and $5 million ongoing per annum to continue the First 5 Forever (F5F) Family Literacy Program, providing direct support to parents to build strong early years literacy foundations for children aged five years and below.

19

Budget Strategy and Outlook 2018-19

1.4 Ensuring all Queenslanders share in the increased prosperity and quality of life

The Queensland Government also plays a number of significant roles in ensuring the benefits of economic growth and the new opportunities created are translated into enhanced wellbeing and prosperity for all Queenslanders.    

The Queensland Government continues to react and respond to Queenslanders’ preferences and is attuned to the community’s concerns and needs.    

This includes the Government continually striving to improve the effectiveness and efficiency of its delivery of essential services by promoting new and innovative approaches to the procurement of those services.

As such, a range of essential Queensland Government services not only improve the health and safety of Queenslanders, their families and the community, but are also essential in underpinning economic outcomes, by enabling Queenslanders to be more productive and economically engaged through employment, education and training.

As part of the Government’s commitment to reduce cost of living impacts on Queensland households and small businesses, the 2018-19 Budget provides $5.6 billion to help manage household budgets. A number of concessions are focused on supporting pensioners, special needs and disadvantaged members of the community to help reduce the cost of life’s essentials including electricity, water, transport, education and housing. The 2018-19 Budget also provisions around $500 million for Queensland’s participation in the National Redress Scheme for Survivors of Institutional Child Sexual Abuse.

The Government has also made substantial investments to deliver the frontline services that Queenslanders need to ensure the health, education, safety and wellbeing of Queensland communities over recent years.

A record education and training operating budget of $14.1 billion in 2018-19 will continue to deliver quality education to our young Queenslanders and $732 million transformative capital improvements to school and training facilities across the State.

The 2018-19 Budget also provides significant funding to continue to deliver first-class health services to Queenslanders. This includes a record $17.3 billion in operating funding, as well as a $985.5 million health portfolio capital program.

The Palaszczuk Government also remains committed to protecting Queenslanders and keeping the State’s families and communities safe. This Budget delivers significant funding for a range of new and ongoing initiatives across the key public safety agencies, including an additional $171.9 million over four years for 400 police officers in high priority areas and $55.1 million over four years for 85 counter-terrorism officers and operational specialists and to establish a Security and Counter-Terrorism Command. This builds on the investment in the 2017-18 Budget for an additional 30 counter-terrorism police officers and 20 police officers, bringing total additional frontline police and operational specialists in priority areas across the State to 535.

20

Budget Strategy and Outlook 2018-19

The $1.8 billion Queensland Housing Strategy, announced in the 2017-18 Budget, will continue to deliver more social and affordable housing, and transform the way housing services are delivered in Queensland. Meanwhile, Queensland families and communities will continue to benefit from the revitalisation of frontline service delivery in health, education and policing.

The 2018-19 Budget provides a total of $17 million over three years to enact the Government’s election commitment to implement a ‘No Card, No Start’ policy, which will prevent Blue Card applicants from commencing work until their application has been approved and their Blue Card issued.

The Government also recognises that a key element of being a responsive government is ensuring the services it provides are easy to use in the most effective and efficient way possible, and that it meets the standards of service demanded by Queenslanders. To this end, the 2018-19 Budget delivers additional funding of $8.8 million in 2018-19 to continue digital technology and service delivery measures to improve customer service.

The Government’s economic plan also recognises the importance of the interaction between different levels of government to help fund important community projects and programs, improving environmental outcomes and reducing the cost of living. As such, the Budget provides additional funding of $32 million in 2018-19 for advance payments to councils to meet the cost of municipal household waste sent to landfill and to avoid any direct impact on households associated with the introduction of the Waste Disposal Levy in 2019.

The Budget also delivers on the Government’s election commitment to implement more effective funding grants to Local Government by allocating a total of $4.5 million over four years to progress the implementation of the Review of Grants to Local Government: Current and Future State Assessments report. Councils will receive a total of $1.7 billion in grants in 2018-19.

21

Budget Strategy and Outlook 2018-19

2 Economic performance and outlook

Features

• Growth in Queensland gross state product (GSP) is expected to strengthen to 2³⁄₄% in 2017-18, largely reflecting a rebound in business investment and a recovery in coal exports following the impacts of Severe Tropical Cyclone (STC) Debbie in 2016-17.

• Economic growth is forecast to strengthen further to 3% in 2018-19. In 2019-20, while domestic activity should strengthen and support stronger jobs growth, it will also boost imports. Combined with a moderation in export growth, this will constrain the trade sector’s contribution to growth and result in GSP growth easing to 2³⁄₄%. From 2020-21, GSP is expected to grow 2³⁄₄% per annum, consistent with the State’s longer run potential.

• Stronger global economic conditions have boosted industrial production across Queensland’s major trading partners, lifting demand for and prices of several of the State’s key commodity exports. A rebound in coal exports following STC Debbie and the final year of the LNG ramp-up have also supported growth in overseas exports in 2017-18.

• Growth in household consumption has remained subdued in 2017-18, despite a strong pick up in full-time jobs. Growth is then expected to gradually strengthen over the forecast period. Meanwhile, dwelling investment is on track for a ‘soft landing’, with a slight decline in activity in 2017-18 and 2018-19 before returning to modest growth in 2019-20.

• Business investment has rebounded strongly in 2017-18, to be a key driver of economic growth. The recovery was initially driven by spending on machinery and equipment, but has since become broader-based, with improved business conditions and ongoing growth in tourism and education exports supporting a recovery in non-dwelling construction.

• However, largely reflecting the strong ramp up in business investment, overseas import growth is expected to be considerably higher than the growth in overseas exports, resulting in the trade sector detracting from overall growth in 2017-18.

• From 2018-19 onwards, growth in commodity exports is expected to be modest, while prices, particularly for coal, are expected to decline from current elevated levels. However, with imports expected to ease in 2018-19 following the surge in 2017-18, the trade sector should contribute to growth in 2018-19.

• Employment growth has been stronger than expected in 2017-18, driven largely by health, construction, transport and education. While growth has eased in early 2018, the strong gains in late 2017 mean growth over the year to June quarter 2018 is estimated to be 2³⁄₄%. Partially reflecting a lower level of activity in dwelling construction, employment is expected to grow at more sustainable rates of 1¹⁄₂% and 1³⁄₄% over the next two years.

• The entry of jobseekers encouraged by greater opportunities has seen the participation rate rise sharply and the unemployment rate stabilise in the short-term, with the unemployment rate forecast to remain at 6¹⁄₄% in June quarter 2018 and 2019. However, stronger domestic activity is expected to see the rate fall to 6% by June quarter 2020.

22

Budget Strategy and Outlook 2018-19

2.1 International conditions

Global conditions improved significantly in 2017 and, on balance, the economic prospects of Queensland’s major trading partners are positive over the forecast period. However, while the recent stronger growth is likely to extend into 2018, the pace of growth is expected to moderate in later years.

In addition to monetary policy settings by major central banks remaining accommodative, stronger global trade drove a rebound in industrial production in almost all of Queensland’s major trading partners in 2017. This in turn has led to a strong recovery in mineral and energy prices.

However, the current outlook suggests that coal, iron ore and oil prices will decline to more sustainable levels in the coming year, in line with an anticipated slowing in global industrial production growth following its rebound in 2017.

Meanwhile, a widening interest rate differential between the US and Australia saw the A$ fall back towards the lower end of the 75-80USc range by mid-May 2018. A sustained lower exchange rate will support the incomes and international competitiveness of Queensland exporters. However, higher US interest rates could see funds flow more towards the US and other overseas capital markets.

Growth in the United States, supported by expansionary monetary and fiscal policy, has seen the US labour market at or near full employment and inflation close to the Federal Reserve’s (the Fed) target. While the Fed has continued to reverse some monetary stimulus, the recent fiscal stimulus provided by tax cuts and spending legislation is likely to support growth in the short-term. However, the tight labour market may increase inflationary pressure and cause the Fed to raise interest rates further and faster than anticipated, while any future balance sheet repair required due to the impact on US government debt may offset some of the short-term stimulus.

China’s economy has maintained growth close to 7% in the past three years. The country’s brisk pace of economic and social development has coincided with an ageing population, widening income inequality, high corporate debts and rising pollution. China’s economic growth is expected to ease in the near-term, with trade tensions with the US providing a risk to the outlook.

Japan’s economy has been expanding moderately in recent years, with the country’s exports increasing on the back of stronger global economic growth. Japan’s monetary policy is likely to remain accommodative for some time and, along with spending related to the 2020 Tokyo Olympics, Japan’s economy is likely to grow moderately in the near-term.

Industrial production growth in Korea moderated in 2017, partly due to the appreciation of the Korean Won against the Japanese Yen over the course of 2017. Overall economic growth in Korea is expected to moderate slightly in 2018 and 2019.

India’s economy has seen a rebound in growth, as investment and consumption continue to drive the cyclical recovery. The Reserve Bank of India expects India’s economy to grow by 7.4% in 2018-19, which would likely see India as the world’s fastest growing major economy.

23

Budget Strategy and Outlook 2018-19

2.2 National conditions

The national economy continues to transition towards broad-based growth. Australian Treasury forecasts GDP growth to strengthen to 2³⁄₄% in 2017-18 and to 3% in both 2018-19 and 2019-20.

A pick-up in household consumption is supported by strengthening wage growth and solid employment outcomes, while dwelling investment is expected to remain elevated by historical standards. Australian Treasury expects business investment to return to growth in 2017-18, driven by a lift in non-mining business investment and a diminishing drag from mining investment.

Goods exports nationally continue to be supported by the expansion of mining capacity, primarily in Western Australia (iron ore and LNG) and the Northern Territory (LNG), while services exports are benefiting from opportunities in the Asian region. Australian Treasury expects employment growth to moderate from current rates and the unemployment rate to ease gradually.

2.3 Queensland conditions and outlook

Growth in the Queensland economy is expected to strengthen to 2³⁄₄% in 2017-18, reflecting further improvement in domestic demand (as business spending has rebounded) and a recovery in coal exports following STC Debbie. Economic growth is forecast to accelerate further to 3% in 2018-19, with household consumption gaining momentum and a contribution to growth from the trade sector as imports ease (Chart 2.1).

Chart 2.1 Economic growth¹, Queensland and Australia

Note:

1. CVM, 2015-16 reference year, 2017-18 onwards are forecasts/projections.

Sources: ABS 5206.0, Australian Government Budget 2018-19 and Queensland Treasury.

24

Budget Strategy and Outlook 2018-19

Domestic activity is forecast to strengthen in 2019-20, supporting stronger jobs growth, but also boosting imports. When combined with a forecast moderation in exports growth, as some key commodities approach production capacity, this is expected to constrain the trade sector’s contribution to growth in 2019-20 and result in overall growth easing to 2³⁄₄% in the year. From 2020-21, Queensland GSP is expected to grow by 2³⁄₄% per annum, consistent with the State’s longer-run potential (Table 2.1).

Table 2.1 Queensland economic forecasts/projections¹

Actual

Est. Act.

Forecasts

Projections

2016-17

2017-18

2018-19

2019-20

2020-21

2021-22

Gross state product2

2.5

23⁄4

3

23⁄4

23⁄4

23⁄4

Nominal gross state product

9.3

51⁄2

4

33⁄4

41⁄2

43⁄4

Employment3

1.8

23⁄4

11⁄2

13⁄4

13⁄4

2

Unemployment rate4

6.2

61⁄4

61⁄4

6

6

53⁄4

Inflation5

1.7

13⁄4

2

21⁄2

21⁄2

21⁄2

Wage Price Index5

1.9

21⁄4

21⁄2

3

3

3

Population5

1.5

13⁄4

13⁄4

13⁄4

13⁄4

13⁄4

Notes:

1. Unless otherwise stated, all figures are annual percentage change.

2. Chain volume measure (CVM), 2015-16 reference year.

3. Through-the-year growth rate to the June quarter (seasonally adjusted).

4. Seasonally adjusted rate for the June quarter.

5. Annual percentage change, year-average.

Sources: ABS 3101.0, 6202.0, 6345.0, 6401.0 and Queensland Treasury.

Household consumption

Constrained by moderate growth in household incomes, Queensland household consumption grew by 2.4% in 2016-17. While a marked improvement in labour market conditions in 2017-18 has aided a pick-up in overall compensation of employees, wage pressures in the economy remain low and households continue to be cautious about spending.

Further, with the State’s household savings rate in 2016-17 at its lowest since 2003-04, any growth in income will likely be utilised to pay off household debt, rather than translate into increased consumption in the short-term.

With the terms of trade expected to moderate and jobs growth forecast to soften following the exceptionally strong gains in 2017-18, household consumption growth is again forecast to be subdued in 2018-19. Additionally, the slowing in apartment construction is expected to both constrain spending on household goods and furnishings and reduce consumption due to falls in associated construction employment. In later years, consumption growth is forecast to pick up gradually, but remain below the average growth rates recorded prior to the GFC.

25

Budget Strategy and Outlook 2018-19

Dwelling investment

After several years of sustained growth, Queensland’s dwelling investment cycle peaked in 2016-17. Driven by a decline in the construction of attached dwellings (units, apartments, etc.), dwelling investment is forecast to contract in 2017-18 and 2018-19, as the large amount of new apartment supply is absorbed into the market. However, the decline across these years is expected to be moderate relative to previous cycles. Modest growth is expected to return from 2019-20 onwards, as the decline in attached dwelling construction slows and is offset by the construction of new houses and ongoing growth in alterations and additions.

Business investment

Following the LNG construction boom, Queensland business investment fell rapidly in 2014-15 and 2015-16 before stabilising in 2016-17, driven by a return to growth in machinery and equipment investment. Business investment is expected to rebound strongly in 2017-18, driven by growth across all components.

Growth in engineering construction is expected to be supported by investment in renewable energy projects, including wind and solar farms, in 2017-18 and 2018-19. However, with few major resources projects currently committed or under construction, growth in heavy industry investment will likely be subdued in the medium-term.

Non-residential building construction work has risen, strengthened by accommodation and educational facilities amid increased education enrolments and tourism activity. This trend is likely to continue. Elevated vacancy rates mean new investment in office space is likely to be subdued.

Machinery and equipment expenditure has risen solidly, buoyed by increased company profits, low lending rates to businesses and the lower A$ benefiting exporters. Recent strength in employment growth and elevated capacity utilisation rates suggest this component should continue to grow in 2018-19. Overall, business investment is forecast to pick up steadily over the forecast period, consistent with a steady acceleration in non-dwelling construction growth.

Public final demand

Public final demand is forecast to continue to grow strongly. A range of large expenditure programs (such as the National Disability Insurance Scheme) and infrastructure projects, including the Queensland Government’s $11.6 billion capital works program in 2018-19, will underpin this growth.

Overseas exports and imports

A rebound in coal exports following STC Debbie and the final year of the LNG production ramp-up have supported growth in overseas exports in 2017-18. However, the unexpected strong growth in overseas imports will result in net exports detracting from overall growth in 2017-18. In 2018-19, net exports are expected to contribute modestly to growth, but an increase in imports to support domestic growth in 2019-20 will constrain the overseas trade sector’s contribution to growth in that year.

26

Budget Strategy and Outlook 2018-19

Coal export volumes have rebounded in 2017-18, following the loss of 11 million tonnes in April and May 2017 due to STC Debbie. However, this recovery has been tempered somewhat by the impacts of Tropical Cyclone Iris in early April 2018 and maintenance across port and rail infrastructure. Looking ahead, while coal exports volumes are forecast to continue to grow strongly in 2018-19, partly due to a resumption of full operation at the Dalrymple Bay Coal Terminal, the rate of growth will most likely be moderate in later years. Increased industrial production in Asia, particularly Japan and Korea, is expected to underpin demand for hard-coking coal, while new coal fired power stations in Japan will support demand for thermal coal.

Following several price spikes throughout 2016-17 and 2017-18 (due to regulatory supply restrictions in China, STC Debbie and increased demand in China), hard-coking prices are forecast to decline throughout 2018-19, but remain higher than 2015-16 levels. Similarly, thermal coal prices, which have been elevated throughout 2016-17 and 2017-18, are expected to decline in 2018-19, but remain above 2015-16 prices.

LNG export volumes have grown significantly in recent years, as all six LNG production trains on Curtis Island were completed and began exporting. However, reflecting strong domestic demand for gas, LNG exports have plateaued slightly below nameplate capacity and growth is expected to moderate in the coming years. With 2017-18 being the first full year in which all six LNG trains are in production, any further growth in LNG exports will be driven by new gas developments which will also provide additional supply into the eastern domestic gas market.

Metals export volumes are expected to return to growth in 2018, after closures of depleted mines and production cuts. With several new projects and increased production encouraged by a sustained rally in prices, metals exports are forecast to grow solidly in 2018-19 and 2019-20.

Chart 2.2 Overseas goods exports, Queensland

Source: Queensland Treasury.

27

Budget Strategy and Outlook 2018-19

Beef export volumes are expected to return to growth from 2017-18 onwards. With seasonal conditions expected to return to normal, restocking activity is forecast to gradually wane.

Sugar exports are expected to decline in 2017-18 following STC Debbie. Some recovery is expected in the near-term with only modest growth in the medium-term. Cotton exports are forecast to grow further in 2017-18, following a large increase in 2016-17. Other crop exports are forecast to decline substantially in 2017-18, due to large falls in wheat and chickpeas.

With the A$ remaining at a more competitive level for an extended period, tourism exports are expected to grow solidly over the forecast period. However, with national tourism growth being underpinned largely by growth from Chinese and Indian tourists visiting friends and relatives, Queensland tourism is expected to continue to grow more moderately than the southern states.

Queensland’s international education exports have grown strongly in recent years. A competitive A$, rising demand for education from Asia and increasing popularity amongst South American students are all expected to support continued strong growth.

Imports have picked up strongly in the first half of 2017-18 as business investment growth increased the demand for imported capital goods. However, the significant growth in imports has been stronger than the growth in machinery and equipment investment, possibly reflecting pent-up demand as business confidence continues to recover following the GFC.

Following the strong rebound in 2017-18, business investment is forecast to return to more moderate growth from 2018-19, while household consumption is expected to remain subdued over the forecast period. Reflecting these trends, imports are forecast to fall from elevated levels in 2018-19, before returning to modest growth in 2019-20.

Labour market

Employment growth has been stronger than expected in 2017-18. While employment growth has moderated in early 2018, the exceptional gains in late 2017 mean growth over the year to June quarter 2018 is estimated to be 2³⁄₄%. Employment growth is expected to return to more sustainable rates of 1¹⁄₂% and 1³⁄₄% respectively over the next two years (Chart 2.3).

The ongoing downturn in labour-intensive residential construction over 2018 and 2019 will be a key factor in the moderation of employment growth from its current high rate, with dwelling investment having considerable flow on effects to household consumption.

Rather than generating a similar reduction in the State’s unemployment rate, much of the recent strength in Queensland employment has been absorbed by increased labour force participation. The strong jobs growth has encouraged jobseekers to re-enter the labour force, seeing the participation rate climbing to its highest rate in three years. As a result, the unemployment rate is forecast to remain at 6¹⁄₄% in the near term (June quarter 2018 and 2019).

With improved business investment, ongoing public spending programs and a slowly strengthening household sector, employment growth is forecast to improve in 2019-20 to be at or slightly above growth in the working age population. As the dwelling investment cycle matures and domestic economic activity strengthens, employment growth is expected to strengthen and the unemployment rate is forecast to move slightly lower later in the forecast period, improving to 6% in June quarter 2020 as spare capacity in the labour market is absorbed.

28

Budget Strategy and Outlook 2018-19

Chart 2.3 Employment growth¹ and unemployment rate², Queensland³

Notes:

1. Through-the-year growth rate to the June quarter (seasonally adjusted).

2. Seasonally adjusted rate for the June quarter.

3. 2017-18 onwards are forecasts/projections.

Sources: ABS 6202.0 and Queensland Treasury.

Regional labour markets

With agriculture, mining and construction accounting for a significant portion of economic activity in regional Queensland, the operating environment of these few industries are crucial to the conditions and outlook for labour market outcomes in regional Queensland.

While farmers continue to face challenging conditions due to widespread drought, those regions exposed to the resources sector have improved. Meanwhile, continued growth in tourism activity has also supported a return to solid employment growth in regional Queensland (Chart 2.4).

As a result, the unemployment rate across many regional centres has declined and the overall gap between regional and South East Queensland has narrowed substantially in 2017-18. After stabilising between 2015 and early 2017, the aggregate unemployment rate in regional Queensland fell 0.6 percentage point (to 7.2%) over the year to April 2018, compared with a 0.1 percentage point increase in the South East (to 5.7%).

Areas such as Mackay and Cairns have shown considerable improvement. Over the year to April 2018, employment has risen in Townsville (up 10,300 persons), Mackay (up 6,900 persons) and Cairns (up 4,900 persons). Meanwhile, these regions’ unemployment rates have fallen by 2.3 percentage points (to 8.5%), 2.0 percentage points (to 3.8%) and 0.8 percentage point (to 6.3%), respectively.

29

Budget Strategy and Outlook 2018-19

The improvement in Cairns is consistent with stronger tourism activity in recent years which has encouraged new investment projects and additional direct flights from China and Japan. Labour market conditions for younger workers in Cairns, closely linked to conditions in the region’s tourism industry and opportunities for lower-skilled workers, have also improved.

Meanwhile, Fitzroy appears to be adjusting following the wind-down in LNG construction investment and lingering impacts of the drought on beef production. Similar to Mackay, coal operations in the Fitzroy region have benefited from higher coal prices.

Labour market outcomes in Townsville have improved over the past year. However, while Townsville is a reasonably diversified economy, it continues to be influenced by prospects in the resources sector, directly through fly-in fly-out workers and indirectly via its processing infrastructure.

Conditions in the diverse Queensland-Outback region also remain challenging. The Outback faces ongoing drought conditions in the south and central west, and elevated levels of unemployment across some Indigenous communities.

Chart 2.4 Employment growth¹ by region, Queensland

Note:

1. Year-average. South East Queensland is defined as Greater Brisbane, Gold Coast, Sunshine Coast and Toowoomba.

Source: ABS 6291.0.55.003

30

Budget Strategy and Outlook 2018-19

Prices and wages

Brisbane consumer price growth is expected to remain subdued in 2017-18, with inflation largely due to the scheduled 12.5% annual increase in the Australian Government’s tobacco excise, higher purchasing costs for new dwellings and higher automotive fuel prices. A modest acceleration in inflation is forecast for 2018-19, with a further increase in the tobacco excise and increased new dwelling purchase prices again contributing strongly to increases in the CPI.

Despite nominal wage growth remaining low by historical standards, real wages have continued to rise. As conditions in the domestic economy and spare capacity in the labour market declines, wage growth is expected to improve over the medium-term.

Population

Queensland’s population growth is forecast to average around 1³⁄₄% in 2017-18 and over the remainder of the forecast period.

Housing affordability has seen a strengthening in net interstate migration from New South Wales, while the end of the Western Australian resources investment boom has seen an increase in net inflows over recent years, after a period of outflows to that state between 2008 and 2015.

Net overseas migration in Queensland has grown strongly but is expected to moderate in 2018, consistent with national policies. However, rising incomes in Asia and the competitive A$ will continue to help drive growth in net overseas migration over the medium-term.

Over the longer term, Queensland Treasury projections show that Queensland’s population, which is estimated to have recently topped 5 million, will reach 6 million by 2029 and 7 million by 2038, with much of this growth anticipated to occur in the south east of the State.

Substantial investment in transport, health and education infrastructure, from both the public and private sectors, will be required to support the productive capacity of this increased population base. The Palaszczuk Government’s $45.8 billion capital works program is designed to help meet the demands of the State’s growing population.

2.4 Risks and opportunities

Key risks to the international outlook include the timing of monetary policy normalisation in major economies, particularly the US. Further interest rate differentials between the US and Australia may have an adverse flow-on effect to the Australian economy in general, particularly on borrowing costs.

Further, there are still uncertainties surrounding global trade conflicts which may impair demand for key industrial commodities.

Domestically, uncertainty remains around the extent of oversupply in the apartment market, and any concurrent downturn in major southern capitals could exacerbate the downturn in Queensland.

31

Budget Strategy and Outlook 2018-19

There are ongoing uncertainties surrounding changes to coal transport scheduling and any potential response by coal miners, other above-rail providers and ports. The current assessment is that the impact may not be significant, and that the issue is expected to be resolved this year. Overall, coal exports are expected to be higher in 2018-19 compared to last year. Notwithstanding this, the uncertainty provides a risk to the outlook.

More than 50% of the State remains drought declared. While a return to normal seasonal conditions is assumed, if current drought conditions continue, it could negatively impact on agricultural investment, production and exports.

Upside risks include the possibility that business investment may be stronger than currently predicted if company profits continue to remain at high levels or more large scale renewable energy projects are committed. Further, if commodity prices remain relatively high for longer than anticipated, it may rekindle some additional interest in other mining-related investment.

32

Budget Strategy and Outlook 2018-19

Table 2.2 Queensland economic forecasts¹, by component

	Actual		Est. Act.		Forecasts
	2016-17		2017-18		2018-19		2019-20
Economic output2
Household consumption		2.4		2		21⁄4		21⁄2
Private investment		1.3		41⁄2		11⁄4		21⁄2
Dwelling investment		3.2		-41⁄4		-11⁄2		1
New and used		4.2		-71⁄4		-33⁄4		-1⁄2
Alterations and additions		1.1		3		3		4
Business investment		-1.9		103⁄4		31⁄4		33⁄4
Non-dwelling construction		-6.8		10		11⁄2		31⁄2
Machinery and equipment		5.3		111⁄2		53⁄4		4
Private final demand		2.1		23⁄4		2		21⁄2
Public final demand		5.2		4		33⁄4		3
Gross state expenditure		3.0		3		21⁄4		23⁄4
Net overseas exports3		0.4		-13⁄4		11⁄4		0
Overseas exports		6.8		21⁄2		43⁄4		21⁄4
less Overseas imports		5.8		12		-1		23⁄4
Gross state product		2.5		23⁄4		3		23⁄4
Nominal gross state product		9.3		51⁄2		4		33⁄4
Other economic measures
Employment4		1.8		23⁄4		11⁄2		13⁄4
Unemployment rate5		6.2		61⁄4		61⁄4		6
Inflation6		1.7		13⁄4		2		21⁄2
Wage Price Index6		1.9		21⁄4		21⁄2		3
Population6		1.5		13⁄4		13⁄4		13⁄4

Notes:

1. Unless otherwise stated, all figures are annual percentage changes.

2. CVM, 2015-16 reference year, except nominal GSP. Components not separately reported are other investment (cultivated biological resources, intellectual property products and ownership transfer costs), the balancing item (including interstate trade and inventories) and the statistical discrepancy.

3. Goods and services, percentage point contribution to growth in gross state product.

4. Through-the-year growth rate to the June quarter (seasonally adjusted). The comparable growth rates in year average terms are 0.0%, 4%, 1¹⁄₂% and 1³⁄₄% from 2016-17 through to 2019-20.

5. Seasonally adjusted rate for the June quarter.

6. Annual percentage change, year-average.

Forecast assumptions include: a gradual rise in the RBA cash rate from 2019; a broadly stable A$; oil prices to fall in the near term and then be relatively stable; and a neutral outlook for weather conditions.

Sources: ABS 3101.0, 6202.0, 6345.0, 6401.0 and Queensland Treasury.

33

Budget Strategy and Outlook 2018-19

3 Fiscal strategy and outlook

Features

• The 2018-19 Budget delivers on the Government’s election commitments, especially in the areas of infrastructure, jobs and skills, and services.

• A net operating surplus of $1.512 billion is expected for 2017-18. This is $1.027 billion higher than estimated at the 2017-18 Mid Year Fiscal and Economic Review (MYFER), and $1.366 billion higher than the surplus forecast at the time of the 2017-18 Budget.

• The significant 2017-18 surplus results from short-term factors, particularly higher royalty revenue from coal prices remaining higher for longer than expected, increased Australian Government grants due to a larger Goods and Services Tax (GST) pool and upwards revisions to revenue from dividends and income tax equivalent income.

• The strong 2017-18 operating surplus will see General Government Sector debt in 2017-18 around $2.4 billion lower than estimated in the 2017-18 Budget.

• The expected return of coal prices to the medium-term outlook, anticipated reductions to GST revenue and declining dividends and interest income means the fiscal environment beyond 2017-18 remains challenging.

• A General Government Sector net operating surplus of $148 million is forecast for 2018-19. Net operating surpluses are forecast across the forward estimates, though smaller than estimated at MYFER as a result of anticipated significant reductions in receipts from the Australian Government, particularly GST.

• The General Government Sector debt to revenue ratio has decreased substantially over the period to 2017-18 in each successive budget since 2014-15. The debt to revenue ratio for 2017-18 has fallen to 54%, primarily as a result of the strong 2017-18 operating surplus, and is significantly lower than the peak of 91% in 2012-13.

• Queensland’s General Government Sector borrowing costs as a percentage of revenue are now largely in line with that of other states. Government borrowings are funding the investment in productive infrastructure that will grow the state’s economy.

• Queensland’s net worth (that is, the amount by which the State’s assets exceeds its liabilities) continues to increase. At the same time, the State’s long-term financial liabilities, including accruing superannuation liabilities and WorkCover, continue to be fully funded.

• Non-financial Public Sector debt will continue to increase over the forward estimates as a result of continued investment in economic infrastructure, however it is forecast to remain below $80 billion in 2020-21, and is almost $1.1 billion lower than forecast at the 2017-18 MYFER.

34

Budget Strategy and Outlook 2018-19

3.1 Context

The Queensland Government is delivering the best possible services and infrastructure to all communities.

The 2018-19 Budget focuses on implementing the 2017 election commitments, managing emerging fiscal pressures and continuing to deliver the Government’s commitment to grow the economy, supporting and creating jobs, and improve health and education outcomes.

The 2017 election commitments will be funded through reprioritisations and revenue measures, consistent with Putting Queenslanders First. In addition, Queensland Treasury will be continuing its work with agencies to find efficiencies in expenditure and ensure effectiveness in programs and service delivery.

Since MYFER, there has been a reduction of around $749 million over the forward estimates in expected GST funding provided by the Australian Government resulting from a decrease in Queensland’s share of the GST. This is despite an increase in GST funding in 2017-18, which is due to an increase in the overall size of the GST pool.

3.2 Key fiscal aggregates

The key fiscal aggregates of the General Government Sector for the 2018-19 Budget are outlined in Table 3.1 and are discussed in detail in this chapter.

Table 3.1 General Government Sector – key fiscal aggregates¹

	2016-17 Actual2 $ million		2017-18 MYFER $ million			2017-18 Est. Act. $ million			2018-19 Budget $ million			2019-20 Projection $ million			2020-21 Projection $ million			2021-22 Projection $ million
Revenue		56,194		56,464			58,259			57,738			58,835			59,939			62,269
Expenses		53,373		55,980			56,747			57,590			58,675			59,829			61,579
Net operating balance		2,821		485			1,512			148			160			110			690
PNFA3		4,634		4,965			4,905			5,927			7,557			7,396			7,081
Fiscal balance		536		(1,681	)		(604	)		(3,033	)		(3,881	)		(3,400	)		(2,636	)
Net Worth		194,936		198,268			199,686			202,636			205,775			208,101			210,515
Borrowing		33,260		32,502			31,367			32,311			35,861			39,588			42,290
Borrowing (NFPS)4		71,904		71,222			69,501			70,871			75,214			79,750			83,093

Notes:

1. Numbers may not add due to rounding. Bracketed numbers represent negative amounts.

2. Reflects published actuals.

3. PNFA: Purchases of non-financial assets.

4. NFPS: Non-financial Public Sector.

35

Budget Strategy and Outlook 2018-19

3.2.1 Net operating balance

Table 3.2 compares the General Government Sector net operating balance forecasts for the 2017-18 Budget and MYFER with 2018-19 Budget forecasts.

Table 3.2 General Government Sector – net operating balance forecasts

	2016-17 $ million		2017-18 $ million		2018-19 $ million		2019-20 $ million		2020-21 $ million		2021-22 $ million
2017-18 Budget		2,824		146		117		704		408		n.a.
2017-18 MYFER		2,821		485		165		307		531		n.a.
2018-19 Budget		2,821		1,512		148		160		110		690

The anticipated 2017-18 net operating surplus of $1.512 billion compares with a forecast surplus of $485 million expected in the 2017-18 MYFER.

Since MYFER, forecast revenue has increased by $1.795 billion in 2017-18, primarily related to:

• royalty revenues being higher than forecast, attributable largely to higher coal prices during 2017-18

• increased grants, driven by the larger GST pool

• increased dividend and income tax equivalent income, supported by increased earnings from electricity generation and network businesses.

The key drivers for a $767 million increase in expenses since MYFER include provisioning for the anticipated costs of Queensland participating in the National Redress Scheme and the Australian Government’s advance payment of Financial Assistance grants to local governments in 2017-18 for the 2018-19 financial year.

In 2018-19, General Government Sector expenses are estimated to be 1.5% higher than the 2017-18 estimated actual. Factors influencing the higher expenses in 2018-19 include increased activity in Health and Education, additional job creation initiatives, community services initiatives, and advance payments to local councils for the introduction of the new Waste Disposal Levy.

Additional measures, detailed in Budget Paper 4 Budget Measures, support the Government’s ongoing commitment to improve service delivery across the State.

Consistent with the Government’s fiscal principles, net operating surpluses are forecast across the forward estimates. For 2018-19, the estimated General Government Sector operating surplus of $148 million is marginally lower than the $165 million expected at the time of the 2017-18 MYFER.

Table 3.3 provides a breakdown of the movements in the net operating balance since the 2017-18 MYFER.

36

Budget Strategy and Outlook 2018-19

Table 3.3 Reconciliation of net operating balance, 2017-18 MYFER to 2018-19 Budget¹

	2017-18 $ million			2018-19 $ million			2019-20 $ million			2020-21 $ million
2017-18 MYFER net operating balance		485			165			307			531
Taxation revisions2		(20	)		(160	)		(304	)		(407	)
Royalty revisions		638			1,458			1,069			555
GST revisions		239			151			(278	)		(861	)
Measures3
Expense4		(528	)		(832	)		(583	)		(561	)
Revenue		—			116			474			478
Net		(528	)		(716	)		(109	)		(83	)
Net flows from PNFC and PFC entities5		457			186			114			93
Australian Government funding revisions6		(64	)		(515	)		(481	)		334
Other parameter adjustments7		303			(420	)		(158	)		(51	)
2018-19 Budget net operating balance		1,512			148			160			110

Notes:

1. Numbers may not add due to rounding. Numbers indicate the impact on the operating balance. A number in brackets indicates a negative impact on the operating balance.

2. Represents parameter adjustments to taxation revenue excluding taxation revenue measures.

3. Reflects the operating balance impact of Government decisions since the 2017-18 MYFER.

4. Includes anticipated costs of Queensland participating in the National Redress Scheme.

5. Represents revisions to dividends and tax equivalent payments from, and community service obligations (CSOs) and Transport Service Contract (TSC) payments to, Public Non-financial Corporations and Public Financial Corporations, net of CSO and TSC expense measures.

6. Represents the net impact of funding provided by the Australian Government primarily for Specific Purpose Payments and National Partnership payments and includes funding for disaster recovery expenses.

7. Refers to adjustments largely of a non-policy nature, primarily changes in interest paid on borrowings, depreciation, swaps and deferrals.

3.3 Fiscal strategies

3.3.1 State’s operating capacity

The Palaszczuk Government is committed to the sound management of the State’s finances, while delivering high quality services to all Queenslanders. This includes managing within the State’s means and budgeting for operating surpluses in each year of the forward estimates.

This task is made more challenging by a feature of Australia’s federal system known as vertical fiscal imbalance. This imbalance occurs because the Australian Government collects the majority of the country’s revenue, including GST, but States are responsible for delivering the majority of services to the public, including health and education services.

37

Budget Strategy and Outlook 2018-19

As outlined in Chapter 7, almost half of Queensland’s revenue is from the Australian Government. This means that Queensland’s fiscal position is largely influenced by decisions made by the Australian Government, such as not renewing expiring funding agreements, resulting in a lack of certainty about the funding that will be received each year.

Chart 3.1 shows revenue and expenses growth over five years. Over this period, average annual growth in revenue is expected to be 2.07%, with expenses expected to grow 2.9%.

Chart 3.1 General Government Sector revenue and expenses growth

At any given time, issues exist with potentially significant fiscal impacts. However, until issues have been considered by Government or formal agreements are in place, uncertainty exists as to when and if these issues will impact on the net operating balance. Therefore, until greater certainty eventuates, the potential fiscal impacts of such issues are not included in the forward estimates.

Such issues include:

• Share of future GST revenue: The Australian Productivity Commission has completed an inquiry into horizontal fiscal equalisation – the principle underpinning the distribution of GST revenue to the states and territories. At the time of finalising the 2018-19 Budget Papers, states have not been provided with the final report. The recommendations have the potential to significantly change the amount of GST revenue that Queensland receives.

• Long-term School Funding Agreement: The Australian Government is currently in negotiation with State and Territory governments to renew a new five-year School Funding Agreement from 1 January 2019. The agreement may require Queensland to increase school funding over the coming years, based on a new funding methodology. States and Territories are negotiating the terms of the agreement, including the measurement of the funding methodology and transition period.

38

Budget Strategy and Outlook 2018-19

• Remote Housing: The National Partnership on Remote Housing focussed on addressing critical housing needs for Aboriginal and Torres Strait Islander people in remote communities to reduce overcrowding and improve living standards. This agreement expires 30 June 2018, and no renewed funding was provided in the 2018-19 Commonwealth Budget. Significant additional investment is required to meet the growing housing needs in remote Indigenous communities. There are also significant costs to the State related to operating and maintaining existing dwellings constructed under the expiring agreement.

Revenue

An economic environment that supports business and jobs growth, and does not place undue strain on households through policy and taxation settings, is key for any jurisdiction.

To support the delivery of election commitments, the 2017-18 MYFER reflected the Government’s adoption of four modest revenue measures:

• a 0.5% increase in the land tax rate for aggregated holdings above $10 million

• an increase in the Additional Foreign Acquirer Duty (AFAD) from 3% to 7%

• an increase of $2 per $100 of dutiable value for vehicles valued above $100,000

• a 15% point of consumption betting tax.

These measures are discussed in further detail in Chapter 4.

The Government will also introduce a Waste Disposal Levy of $70 per tonne from the first quarter of 2019, as part of a comprehensive waste management strategy.

More information on Queensland’s revenue outlook is provided in Chapter 4.

Fiscal principle supporting revenue management

Taxation per capita in Queensland is significantly lower compared to the average of other Australian states and territories, as discussed in Chapter 4. In 2018-19, Queensland’s taxation per capita of $2,808 will be $875 per capita less than the average of the other jurisdictions.

The Government also aims to support businesses and households by ensuring that own-source revenue in the General Government Sector, including user charges and royalties, remains at or below 8.5% of nominal gross state product (GSP), on average, across the forward estimates. Own-source revenue is derived from total State revenue less any grants received from external sources, mainly the Australian Government.

This principle is expected to be met over the forward estimates period, with revenue falling as a percentage of GSP. For 2018-19, General Government own-source revenue is forecast to be 8.2% of nominal GSP. This falls to 7.7% by 2021-22, with an average of 8.0% across the four years.

Expenses

The forward estimates include the Palaszczuk Government’s election commitments, as outlined in Putting Queenslanders First, which total $1.383 billion. All election commitments have been fully funded through revenue measures and over $1 billion in reprioritisation measures (excluding Queensland Health) over the forward estimates. Delivery of these measures will neither be at the cost of public service jobs nor will require the sale of strategic income-earning assets.

39

Budget Strategy and Outlook 2018-19

Between 2016-17 and 2021-22, expenses are forecast to grow at an average annual rate of 2.9% per year. More information on Queensland’s expenditure outlook is provided in Chapter 5.

Fiscal principle supporting expenses management

In the General Government sector, employee expenses equate to approximately 40% of total expenses. Increases in employee expenses reflect changes in the number of public sector employees as well as wages growth.

A key focus is to ensure a balance between delivery of high-quality services, and the discipline that underpins the Government’s commitment to fiscal sustainability.

To manage employee expenses growth, the Palaszczuk Government has adopted a fiscal principle to maintain a sustainable public service by ensuring that overall growth in full-time equivalents (FTE) employees, on average over the forward estimates, does not exceed population growth.

FTEs are estimated to increase by around 3,833 (or 1.71%) in 2018-19, with the majority of the increase being attributable to growth in health and education.

Average FTE growth over the forward estimates period from 2017-18 to 2021-22 is 1.71%. This compares to an estimated Queensland population growth of 1³⁄₄% annually.

Further details on FTE estimates are provided in Chapter 5, with Table 5.2 providing in-scope agencies and their FTE estimates for 2017-18 and 2018-19.

3.3.2 Infrastructure investment

The Palaszczuk Government is delivering essential infrastructure and capital works to meet the State’s increasing service needs and to promote increased productivity and efficiency for the State’s industries. The Government also recognises that building infrastructure benefits local communities, strengthens local economies and supports local jobs.

The Palaszczuk Government’s 2017 election commitments outlined $1.404 billion in new capital measures, including:

• $353 million towards Building Better Hospitals

• over $128 million towards Future Proofing the Bruce

• $308 million towards Building Future Schools

• $235 million towards Renewing Our Schools.

These capital measures will be funded primarily through allocations from the State Infrastructure Fund and through improved cash management practices.

As part of the 2018-19 Budget, the Government has provided further capital funding of just over $900 million for M1 Pacific Motorway upgrades and $176 million towards the Rookwood Weir.

Further information about the Government’s capital program is provided in Chapter 6 and Budget Paper 3 Capital Statement.

40

Budget Strategy and Outlook 2018-19

Box 3.1 History of purchases of non-financial assets in Queensland

As can be seen from Chart 3.2, purchases of non-financial assets (PNFA), across the entire Non-financial Public Sector, which includes the spending by government-owned corporations, increased significantly from 2003-04, peaking at $15.101 billion in 2008-09.

Chart 3.2 Purchases of non-financial assets, Non-financial Public Sector

The unprecedented high levels of capital spending were the culmination of many unique circumstances existing at the time. These included:

• responding to the prolonged drought in South East Queensland between 2001 and 2009, resulting in a range of measures, including the Gold Coast Desalination Plant, the Western Corridor Recycled Water Scheme and new dams and weirs, as well as the Government purchase of SEQ council-owned assets which formed the basis of the SEQ Water Grid

• several large health-related infrastructure projects from 2007-08, peaking in 2011-12, including the construction of Lady Cilento Children’s Hospital, the Sunshine Coast University Hospital, and the Gold Coast University Hospital

• ramping up of investment in electricity infrastructure from 2004-05 to meet strong growth in demand and ensuring Queenslanders could enjoy improved reliability and safety of supply

• roadway infrastructure of around $500 million per year in the four years to 2010-11, prior to the divestment of Queensland Motorways Limited

• Commonwealth stimulus in response to the Global Financial Crisis, which included programs such as Social Housing and the Building the Education Revolution program.

41

Budget Strategy and Outlook 2018-19

More recently, the State has entered into several finance lease type arrangements, mainly resulting from Public Private Partnerships (PPPs), which are included in the capital program but not fully reflected in purchase of non-financial assets.

Purchases of non-financial assets going forward

Going forward, the Government is, where appropriate, funding its capital program through methods other than direct PNFA. As mentioned above, PPPs, for example, provide alternative financing approaches for the development of new infrastructure or other capital.

The magnitude of spending on PNFA that occurred from the mid-to-late 2000s was brought about by a range of unique circumstances. While the capital program is forecast to increase from its 2015-16 level, it does not return to previous highs.

Chart 3.3 provides an interjurisdictional comparison over time, showing that from 2019-20, Queensland’s capital spending per capita is expected to exceed the average of other states.

Chart 3.3 Per capita purchases of non-financial assets, General Government Sector

42

Budget Strategy and Outlook 2018-19

Improving delivery of the capital program

The Government has implemented a clear focus on improving the timely delivery of essential infrastructure in Queensland. This has resulted in an improvement in the amount of capital expenditure that is actually delivered, as a proportion of the Budget allocation.

This is demonstrated in Chart 3.4, which identifies that the proportion of budgeted purchases of non-financial assets actually delivered in 2016-17 was the highest in the past five years. Further improvement is anticipated in 2017-18, with more than 90% of budgeted purchases of non-financial assets expected to be delivered.

Chart 3.4 Total State purchases of non-financial assets – actual as a proportion of budget

Fiscal principles supporting capital investment management

The Government has adopted two fiscal principles to ensure that there is a consistent flow of capital works and that any new capital investment is funded primarily through recurrent revenues rather than borrowings.

While the value of the total capital program can fluctuate across financial years, the 2018-19 Budget provides for an average General Government Sector PNFA of $6.990 billion across the budget and forward estimates. Total General Government Sector PNFA over the budget and forward estimates are projected at $27.961 billion.

43

Budget Strategy and Outlook 2018-19

Infrastructure funding

The General Government Sector Cash Flow Statement (refer Table 9.7) provides details of the sources of funding for capital investment. It shows that net cash inflows from operating activities equate to 99% of the funding required for the 2017-18 net General Government Sector investments in non-financial assets.

Across 2018-19 to 2021-22, net cash inflows from operating activities are budgeted to average 49.4% of the funding required, primarily reflecting the higher level of capital spending during the period.

The Government is continuing to invest in infrastructure projects that are necessary to support Queensland’s growing population and economy. Borrowings will increase to support the capital program, but are expected to remain below projections in the 2017-18 MYFER due to the stronger than expected 2017-18 operating surplus.

Gross General Government Sector borrowings of $31.367 billion at 30 June 2018 are forecast to be $1.135 billion lower than forecast in the 2017-18 MYFER and $17.054 billion less than forecast at the time of the 2014-15 Budget.

Borrowings

The history of Queensland Government debt over the past decade mirrors that of the Queensland economy. Before 2007, the economic and fiscal policies of the State reflected a transition from a low service level State, to a State with service levels comparable to other major states in Australia. This transition supported a period of sustained growth in the Queensland economy, with many significant infrastructure projects providing enhanced community facilities like schools and hospitals, along with supporting resource development as populations increased significantly across regional Queensland.

While total spending increased over this period as new major social spending programs were introduced, these costs were supported by revenues generated from the housing and mining booms, as well as increases in GST revenues arising from credit expansion. To put this into context, Queensland’s GST revenue alone grew by an average rate of 7.5% per annum across the periods 2001-02 to 2007-08.

In 2007, the global financial crisis (GFC) impacted every major economy in the world, including Queensland. Consumer confidence fell, expectations of a recession rose, and the State’s growing revenue base began to contract.

The Government at the time decided to maintain its economic development program and increase debt. This decision to continue the State’s capital program was aimed at avoiding recession during the GFC. Combined with actions from the Australian Government and the Reserve Bank, along with strong demand from China, the Queensland and Australian economies continued to grow through the GFC.    

Avoiding recession also saw Queensland avoid the economic and social effects of very high and sustained unemployment, with the State’s trend unemployment rate remaining below 6% through to late-2012.

Queensland is currently benefiting from the sustained levels of investment that occurred over the past decade, as discussed in Box 3.1.

44

Budget Strategy and Outlook 2018-19

The debt accumulated over this time was not wasted by governments, but was invested for the future benefit of Queensland, much of which is already being realised. This approach is consistent with fiscal sustainability principles which seek to spread the burden of public spending fairly across generations, with public consumption benefiting the current generation being paid for by that generation. This approach ensures intergenerational equity, with the debt associated with an investment repaid over the life of the asset or term of benefit received from the investment.

Chart 3.5 shows the ratio of borrowings to gross state product (GSP), that is, the amount of debt as compared to the state’s total output.

Chart 3.5 Borrowings to gross state product ratio

An alternative way of assessing the appropriateness of debt levels is to consider the State’s capacity to service its borrowing costs, that is, interest payments as a proportion of revenue (as shown in Chart 3.6). This concept can be likened to a person assessing their ability to service an interest only loan.

45

Budget Strategy and Outlook 2018-19

Chart 3.6 General Government Sector – interest expense to total revenue¹

Note:

1. Average for other states not provided for 2021-22 as not all states have released their 2018-19 Budgets.

Queensland’s ratio is projected to remain relatively flat across the forward estimates, and is only marginally higher than the average in other states.

General Government Sector net worth, which is the difference between assets and liabilities, is $200 billion, and continues to increase across the forward estimates, reflecting the State’s investment in additional assets.

Fiscal principles supporting liabilities management

A primary fiscal principle of the Queensland Government has been to reduce General Government Sector debt, to provide the Government with the capacity to respond to market and environmental shocks.

The debt to revenue measure ratio is the key measure of the sustainability of General Government Sector debt levels. The Government aims to reduce this ratio over time to continue to improve the State’s fiscal sustainability.

The General Government Sector’s debt to revenue ratio has fallen substantially over the period to 2017-18 in each successive budget since 2014-15, as seen in Chart 3.7. The debt to revenue ratio for 2017-18 falls to 54%, significantly lower than the 91% in 2012-13.

Across the forward estimates, the expected moderation in revenue growth, as well as the timing of significant capital projects and associated borrowings, sees a gradual increase in the forecast debt to revenue ratio to 2020-21. On average over the budget and forward estimates, the debt to revenue ratio is 63%, well below the four years to 2019-20 forecast in the 2016-17 Budget.

46

Budget Strategy and Outlook 2018-19

Chart 3.7 General Government Sector debt to revenue ratio

The Government also remains committed to maintaining the long-standing practice of ensuring that the State sets aside assets to meet long-term liabilities such as superannuation and WorkCover, in accordance with actuarial advice.

The State Actuary’s most recent valuations indicate that, as at 30 June 2017, both the defined benefit superannuation scheme and the WorkCover scheme were fully funded.

47

Budget Strategy and Outlook 2018-19

3.4 Achievement of fiscal principles

Table 3.4 provides a summary of the Government’s progress in meeting its fiscal principles’ targets.

Table 3.4 The fiscal principles of the Queensland Government

Principle	Indicator
	General Government debt to revenue ratio
			2017-18 MYFER %		2018-19 Budget %
Target ongoing reductions in Queensland’s relative debt burden, as measured by the General Government debt to revenue ratio.		2017-18		58		54
		2018-19		60		56
		2019-20		63		61
		2020-21		66		66
		2021-22		n.a.		68
	General Government net operating cash flows as a proportion of net investments in non-financial assets
			2017-18 MYFER %		2018-19 Budget %
Target net operating surpluses that ensure any new capital investment in the General Government Sector is funded primarily through recurrent revenues rather than borrowing.		2017-18		69		99
		2018-19		49		60
		2019-20		40		40
		2020-21		53		44
		2021-22		n.a		53
	General Government purchases of non-financial assets
			2017-18 MYFER $ million		2018-19 Budget $ million
The capital program will be managed to ensure a consistent flow of works to support jobs and the economy and reduce the risk of backlogs emerging.		2017-18		4,965		4,905
		2018-19		6,626		5,927
		2019-20		7,486		7,557
		2020-21		6,910		7,396
		2021-22		n.a.		7,081

48

Budget Strategy and Outlook 2018-19

Principle	Indicator
Maintain competitive taxation by ensuring that General Government Sector own-source revenue remains at or below 8.5% of nominal gross state product, on average, across the forward estimates.	General Government own-source revenue to GSP
	2018-19	8.2	%
	Average across the forward estimates	8.0	%
Target full funding of long-term liabilities such as superannuation and WorkCover in accordance with actuarial advice.	As at the last actuarial review (as at June 2017), accruing superannuation liabilities were fully funded. The WorkCover scheme was also fully funded as at 30 June 2017.
Maintain a sustainable public service by ensuring that overall growth in full-time equivalents (FTE) employees, on average over the forward estimates, does not exceed population growth.	FTE growth
	Average across the forward estimates	1.7	%
	Population growth
	Average across the forward estimates	13⁄4	%

49

Budget Strategy and Outlook 2018-19

4 Revenue

Features

• Total General Government Sector revenue is estimated to be $58.259 billion in 2017-18, $2.065 billion (or 3.7%) higher than in 2016-17 and $2.390 billion (or 4.3%) higher than estimated in the 2017-18 Budget. Higher than budgeted revenue growth in 2017-18 is due to increased revenue from royalties resulting from higher coal prices and increased GST and other revenue from the Australian Government.

• Australian Government payments to Queensland in 2018-19 are expected to total $27.411 billion, representing a decrease of $694 million compared to payments in 2017-18.

• Total General Government Sector revenue is estimated to be $57.738 billion in 2018-19. The decrease of $521 million (or 0.9%) from 2017-18 is largely due to reduced Australian Government grants and lower dividend and income tax equivalent income.

• Total revenue is expected to grow at an average rate of 2.1% over the five years to 2021-22. Revenue growth over this period is supported by average annual growth in taxation of 5.3% and current grants of 3.0% but is also affected by declining royalties as coal prices return to medium-term levels, lower interest income due to a reduction in the portfolio of financial assets held and lower dividends.

• Queensland will maintain its competitive tax status, with per capita state tax estimated at $2,808 in 2018-19, compared to an average of $3,683 for the other states and territories. Taxation as a proportion of Queensland’s economy will be 3.9% in 2018-19, down from the five-year peak of 4.3% in 2014-15.

• The Government will introduce a Waste Disposal Levy of $70 per tonne from the first quarter of 2019, as part of a comprehensive waste management strategy.

• The payroll tax rebate for apprentices and trainees will continue at the increased rate of 50% for an additional 12 months, until 30 June 2019.

• New revenue measures to fund election commitments were announced in the 2017-18 MYFER and include a 0.5% increase to the land tax rate above $10 million, increased Additional Foreign Acquirer Duty from 3% to 7%, increased duty for premium light passenger vehicles valued above $100,000 and a 15% point of consumption tax on betting operators.

50

Budget Strategy and Outlook 2018-19

4.1 2017-18 estimated actual

General Government Sector revenue in 2017-18 is estimated to be $58.259 billion, which is $2.390 billion (or 4.3%) more than the 2017-18 Budget estimate. Significant variations from the 2017-18 Budget estimates include:

• a $1.012 billion (or 29.2%) increase in revenue from royalties and land rents, mainly resulting from higher coal prices continuing for longer than expected in the 2017-18 Budget

• a $851 million (or 3.1%) increase in grants, driven by increased GST due to a larger GST pool, and other revenue from the Australian Government, partially offset by lower than anticipated capital grants

• a $629 million (or 30.6%) increase in dividend and income tax equivalent income, supported by increased earnings from electricity generation and network businesses. Queensland’s ownership of its electricity assets enables the Government to reinvest dividends to improve affordability through the Affordable Energy Plan.

These increases were partially offset by lower than estimated revenue from sales of goods and services.

Table 4.1 General Government Sector revenue¹

	2016-17 Actual $ million		2017-18 Budget $ million		2017-18 Est. Act. $ million		2018-19 Budget $ million		2019-20 Projection $ million		2020-21 Projection $ million		2021-22 Projection $ million
Taxation revenue		12,919		13,298		13,284		14,155		15,184		15,951		16,722
Sales of goods and services		5,642		6,067		5,861		5,731		5,947		6,074		6,306
Interest income		2,336		2,330		2,323		2,201		2,078		1,861		1,855
Grants revenue
Current grants		24,540		25,299		26,583		26,001		26,189		27,059		28,402
Capital grants		2,843		2,332		1,898		1,700		1,967		2,002		1,985
Dividend and income tax equivalent income
Dividends		1,693		1,453		1,877		1,552		1,407		1,293		1,229
Income tax equivalent income		997		604		809		666		669		617		558
Other revenue
Royalties and land rents		4,000		3,472		4,484		4,615		4,260		3,904		4,011
Other		1,222		1,015		1,139		1,118		1,135		1,178		1,202
Total revenue		56,194		55,869		58,259		57,738		58,835		59,939		62,269

Note:

1. Numbers may not add due to rounding.

51

Budget Strategy and Outlook 2018-19

4.2 2018-19 revenue by category

General Government Sector revenue in 2018-19 is estimated to be $57.738 billion, $521 million (or 0.9%) lower than the 2017-18 estimated actual revenue of $58.259 billion. The revenue reduction in 2018-19 reflects a range of factors, including:

• Revenue from the Australian Government is expected to be $694 million lower in 2018-19 than in 2017-18, due to a decline in Queensland’s GST revenue sharing relativity and reduced payments for specific purposes.

• Dividends and income tax equivalent income are forecast to be $469 million lower in 2018-19. Further information on these revenues can be found in Chapter 8.

Partially offsetting these decreases are moderate growth in taxation revenue (6.6%), supported by growth in the payroll tax and land tax base and new policy measures including the Waste Disposal Levy.

After increasing 11.6% in 2017-18, royalties are expected to increase 2.8% in 2018-19. While coal royalties are expected to decline 6.5% in 2018-19 due to declining hard coking coal prices, this reduction is expected to be offset by increased revenue from petroleum (including LNG) and other minerals. Trends in factors affecting royalty revenue are discussed in section 4.7.

Major sources of General Government Sector revenue in 2018-19 are grants revenue (48.0%) and taxation revenue (24.5%). Table 4.1 details revenue estimates by category, and Chart 4.1 illustrates the composition of General Government Sector revenue.

Chart 4.1 Revenue by operating statement category, 2018-19¹

Notes:

1. Numbers may not add due to rounding.

2. The major component of other revenue is royalties and land rents (8.0% of total revenue)

52

Budget Strategy and Outlook 2018-19

4.3 2018-19 Budget initiatives

4.3.1 Extension of increased payroll tax rebate for apprentices and trainees

The Government is continuing the payroll tax rebate on the wages of apprentices and trainees at the increased rate of 50% until 30 June 2019. This rebate is in addition to their wages being exempt and will be used as an offset against payroll tax payable on the wages of other employees.

The rebate extension is estimated to reduce revenue by $26 million in 2018-19.

4.3.2 Waste Disposal Levy

The Government is committed to developing a comprehensive waste management strategy with a key component being the implementation of a Waste Disposal Levy. The levy will improve recycling outcomes and address interstate transportation of waste to Queensland.

The Waste Disposal Levy will commence in the first quarter of 2019 and will initially be set at $70 per tonne (higher for regulated waste) and increase by $5 per tonne per annum.

4.3.3 2017-18 MYFER measures

The 2017-18 MYFER outlined new revenue measures, including:

• a 0.5% increase in the land tax rate for aggregated holdings above $10 million

• an increase in Additional Foreign Acquirer Duty (AFAD) from 3% to 7%

• an increase of $2 per $100 of dutiable value for premium light passenger vehicles

• a 15% point of consumption tax on the net wagering revenue of betting operators licenced in Australia from bets placed in Queensland.

Land tax, AFAD and motor vehicle duty measures will apply from 1 July 2018. The point of consumption betting tax will apply from 1 October 2018, and is discussed further in section 4.5.4.

Further detail on these measures, including expected additional revenue, is included in Budget Paper 4 Budget Measures.

53

Budget Strategy and Outlook 2018-19

4.4 Queensland’s revenue trends

Chart 4.2 examines the contribution of the key revenue sources of GST, taxation and royalties to revenue growth. GST was the largest driver of growth in 2017-18, due to increases in both the GST pool distributed to states and Queensland’s share of the pool as determined by the Commonwealth Grants Commission. In 2018-19, taxation revenue contributes the largest proportion to growth, with a smaller increase to royalties expected as increasing petroleum royalty revenue is partially offset by decreasing coal royalties. Lower GST revenue is expected in 2018-19 compared to 2017-18, due to Queensland receiving a reduced share of the GST pool.

Total revenue growth, which is mainly driven by these three sources, is estimated to be 2.1% on average over the five years to 2021-22. This is far lower than the 7.6% average growth over the last fifteen years to 2016-17.

Chart 4.2 Contribution to growth of key revenues¹

Note:

1. Annual percentage point contribution to growth of the aggregate of three categories (GST, royalties and taxes). Total is the annual % growth in revenues of the aggregate of the three categories.

Total revenue growth over the forward estimates is mainly driven by moderate taxation revenue growth, averaging 5.3% over the five years to 2021-22, supported by expected growth in major taxes such as payroll tax, transfer duty and land tax, and also by the introduction of the Waste Disposal Levy. Taxation revenue as a proportion of Queensland’s economy will remain stable over this period rising only slightly from 3.9% in 2018-19 to 4.0% in each year to 2021-22, below the recent peak of 4.3% in 2014-15.

Total royalty revenue is expected to decline in 2019-20 and 2020-21 in line with declining coal prices. GST revenue increased by 9.1% in 2017-18, but is expected to decline in 2018-19 and 2019-20 due to Queensland’s share of the GST pool reducing, with modest growth forecast from 2020-21 as the GST pool increases. Over the four years to 2021-22, GST revenue growth is expected to average 0.8% per year.

54

Budget Strategy and Outlook 2018-19

4.5 Taxation revenue

Total revenue from taxation is expected to grow by 6.6% in 2018-19, following an estimated increase of 2.8% in 2017-18. Chart 4.3 indicates the composition of estimated State taxation revenue for 2018-19. The largest sources are payroll tax and transfer duty, which together represent around 52% of the State’s total taxation revenue in 2018-19.

Chart 4.3 State taxation by tax category, 2018-19¹

Note:

1. Percentages may not add to 100% due to rounding. ‘Other duties’ includes vehicle registration duty, insurance duty and other minor duties. ‘Other taxes’ includes the Emergency Management Levy, Waste Disposal Levy, guarantee fees and other minor taxes.

55

Budget Strategy and Outlook 2018-19

Table 4.2 shows the main components of taxation revenue.

Table 4.2 State taxation revenue¹

	2016-17 Actual $ million		2017-18 Est. Act. $ million		2018-19 Budget $ million		2019-20 Projection $ million		2020-21 Projection $ million		2021-22 Projection $ million
Payroll tax		3,695		3,887		4,086		4,312		4,574		4,850
Duties
Transfer		3,278		3,090		3,214		3,396		3,578		3,768
Vehicle registration		514		543		592		621		651		682
Insurance2		854		900		945		992		1,042		1,094
Other duties3		37		34		35		37		39		40
Total duties		4,684		4,567		4,786		5,046		5,309		5,584
Gambling taxes and levies
Gaming machine tax		684		718		750		784		819		819
Health Services Levy		73		85		93		103		113		124
Lotteries taxes		241		258		266		274		282		291
Betting taxes4		10		10		71		96		99		101
Casino taxes and levies		98		103		106		109		113		113
Keno tax		20		20		21		21		22		23
Total gambling taxes and levies		1,127		1,194		1,307		1,388		1,448		1,471
Other taxes
Land tax		1,082		1,183		1,313		1,368		1,433		1,512
Motor vehicle registration		1,681		1,755		1,829		1,892		1,961		2,032
Emergency Management Levy		484		509		536		559		583		609
Waste Disposal Levy		—		—		101		406		408		408
Guarantee fees5		115		139		150		165		186		206
Other taxes6		52		51		48		49		50		51
Total taxation revenue		12,919		13,284		14,155		15,184		15,951		16,722

Notes:

1. Numbers may not add due to rounding.

2. Includes duty on accident insurance premiums.

3. Includes duty on life insurance premiums.

4. Does not account for allocation of proceeds subject to commercial-in-confidence negotiations, for example, the quantum of compensation to Racing Queensland for impacts from implementation of the betting tax.

5. Includes competitive neutrality fees charged to government-owned corporations.

6. Includes the Statutory Insurance Scheme Levy and Nominal Defendant Levy.

56

Budget Strategy and Outlook 2018-19

4.5.1 Queensland’s competitive tax status

Taxation can impact on business decisions regarding investment and employment, and also household investment and home ownership. Maintaining the competitiveness of Queensland’s tax system provides a competitive advantage to business and moderates the tax burden for its citizens, and is therefore fundamental to the Government’s commitment to job creation and sustainable development.

One of the Government’s fiscal principles is to maintain competitive taxation by ensuring General Government Sector own-source revenue remains at or below 8.5% of nominal gross state product (GSP), on average, across the forward estimates. Own-source revenue is the total State revenue less any grants received from external sources, mainly the Australian Government. This principle is expected to be met over the forward estimates period, with own-source revenue below 8.5% of GSP. Chapter 3 provides more detail on the Government’s fiscal principles.

As Chart 4.4 shows, taxation per capita in Queensland is significantly lower than the average taxation per capita in the other states and territories. In 2018-19, it is estimated that Queensland’s taxation per capita of $2,808 will be $875 per capita less than the average of other jurisdictions.

Chart 4.4 Taxation per capita, 2018-19

Sources: 2018-19 Budget for all jurisdictions except New South Wales, South Australia and Tasmania where 2017-18 mid-year updates are used. Population estimates from the 2018-19 Commonwealth Budget.

57

Budget Strategy and Outlook 2018-19

Table 4.3 demonstrates that the Queensland tax system remains amongst the most competitive in Australia, using various measures of tax competitiveness.

Queensland’s tax effort, as measured by the Commonwealth Grants Commission, was 14.9% below the national average in 2016-17. A third measure of competitiveness, taxation as a share of GSP, also confirms that Queensland’s taxes are competitive with other states.

Table 4.3 Queensland’s tax competitiveness

	NSW		Vic.		Qld		WA		SA		Tas.4		ACT5		NT4		Avg6
Taxation per capita1($)		4,090		3,686		2,808		3,382		2,674		2,277		4,518		2,198		3,683
Taxation effort2 (%)		103.9		105.0		85.1		102.4		102.8		89.3		97.3		84.2		100.0
Taxation % of GSP3 (%)		5.4		5.3		4.0		3.4		4.3		3.8		4.4		2.3		4.9

Notes:

1. 2018-19 data. Sources: 2018-19 Budget for all jurisdictions except New South Wales, South Australia and Tasmania, where 2017-18 mid-year updates are used. Population data from Commonwealth 2018-19 Budget.

2. 2016-17 data. Source: Commonwealth Grants Commission 2018 Update – total tax revenue effort for assessed taxes (payroll, transfer duty, land tax, insurance duty and motor vehicle taxes). Revenue raising effort ratios are an indicator of the extent to which governments burden their revenue bases.

3. 2016-17 data. Sources: Australian Bureau of Statistics 5506.0 and ABS 5220.0.

4. Low taxation per capita primarily reflects the lower revenue raising capacity of those jurisdictions.

5. Figures include municipal rates.

6. Weighted average of states and territories, excluding Queensland (aside from taxation effort, which is the average of all states).

4.5.2 Payroll tax

The overall payroll tax rate of 4.75% is the lowest in Australia and the exemption threshold of $1.1 million is the highest threshold of any mainland state. Queensland employers with total yearly Australian taxable wages between $1.1 million and $5.5 million also obtain a partial deduction, with the deduction withdrawn at a rate of $1 in every $4 of taxable wages.

In addition to the wages of eligible apprentices and trainees being exempt from payroll tax, a 25% payroll tax rebate was applied to these wages from 1 July 2015. To offer an added incentive for businesses to employ apprentices and trainees, the rebate was increased to 50% from 1 July 2016 to 30 June 2018. In this Budget, the increased rebate has been extended a further 12 months, and will provide additional support to businesses employing apprentices and trainees to 30 June 2019.

Payroll tax collections are estimated to be $4.086 billion in 2018-19, representing growth of 5.1% on 2017-18. The 2017-18 estimated actual is 1.8% higher than forecast in the 2017-18 Budget, with key sectors such as construction, manufacturing and mining and associated industries contributing to growth for the first time in two years.

The average annual payroll tax growth is forecast to be 5.6% over the five years to 2021-22, compared to the average of 7.8% over the period from 2001-02 to 2016-17.

58

Budget Strategy and Outlook 2018-19

4.5.3 Duties

Duties are levied on a range of financial and property transactions. The major duties include transfer, vehicle registration and insurance duties.

Transfer duty

Transfer duty is charged at various rates on the transfer of real and business property. The Queensland Government offers extensive concessions for the transfer of land where the property is purchased as a home. For example, eligible home buyers pay a 1% concessional rate on dutiable values up to $350,000, rather than the normal schedule of rates between 1.5% and 3.5% for those values. If a first home buyer purchases a property up to $500,000 they will pay no duty, with reduced rates available up to $550,000.

Revenue from transfer duty is expected to be 4.0% higher in 2018-19 than in 2017-18. This follows a fall of 5.7% in 2017-18 that was largely due to a reduction in large non-residential transactions. Growth in 2018-19 is expected to be driven by modest growth in residential and non-residential transactions and the 1 July 2018 rate increase for additional foreign acquirer duty.

Over the five years to 2021-22, transfer duty is estimated to grow by 2.8% on average per annum.

Vehicle registration duty

Vehicle registration duty is charged on the dutiable value of a motor vehicle on the transfer or initial registration, with a general rate of 2% to 4% dependent on the number of cylinders or rotors of the vehicle. From 1 July 2018, an additional $2 per $100 of dutiable value will be applied for vehicles valued above $100,000.

Revenue from vehicle registration is expected to grow by 9.1% in 2018-19 following growth of 5.6% in 2017-18, with the higher growth due to the introduction of the premium motor vehicle duty from 1 July 2018.

4.5.4 Gambling taxes and levies

A range of gambling activities are subject to State taxes and levies. Total gambling tax and levy collections are estimated to grow by 9.5% in 2018-19, and 5.5% on average over the five years to 2021-22, with these growth rates supported by increased revenue from the new point of consumption tax on betting (betting tax).

Responding to changing consumer behaviour facilitated by increased use of online and interactive technologies, a 15% betting tax will apply from 1 October 2018. The revised date for commencement allows for industry preparation for commencement of the tax, post enactment. Forecasts as at the 2017-18 MYFER were based on the betting tax applying to online wagering only and before allocation of proceeds. Some of these allocations are subject to commercial-in-confidence discussions/negotiation.

59

Budget Strategy and Outlook 2018-19

The betting tax will be implemented in line with other states and territories including South Australia, Victoria, and the Australian Capital Territory. As such, the tax will apply to the net wagering revenue of betting operators licensed in Australia from bets placed by customers in Queensland. This change, and the gross revenue amount excluding allocations of proceeds subject to commercial-in-confidence discussions/negotiation, account for the increased gross revenue from this tax since the 2017-18 MYFER.

Smaller betting operators will not incur a betting tax liability as the rate of 15% applies to taxable wagering revenue exceeding an annual tax-free threshold amount of $300,000. No tax will be paid on a betting operator’s revenue up to and including $300,000 in a financial year. Reconciliation against the threshold in the annual return, and refund provisions for any overpayment, will ensure this. In 2018-19 there will be a proportionate reduction of the tax-free threshold to reflect the 1 October commencement. The new point of consumption betting tax replaces the existing place of supply wagering tax that applied only to the sole retail wagering licensee in Queensland.

4.5.5 Land tax

Land tax is levied on the taxable value of the landowner’s aggregated holdings of freehold land owned in Queensland as at midnight on 30 June each year. The principal place of residence is deducted from the value.

Resident individuals are generally liable for land tax if the total taxable value of the freehold land owned by that person as at 30 June is equal to or greater than $600,000. Companies, trustees and absentees are liable for land tax if the total taxable value of the freehold land owned as at 30 June is equal to or greater than $350,000.

Land tax is estimated to grow by 11% to $1.313 billion in 2018-19, largely due to the new marginal tax rate on land holdings above $10 million from 1 July 2018, along with growth in land values in recent years.

4.5.6 Tax expenditures

Tax expenditures are reductions in tax revenue that result from the use of the tax system as a policy tool to deliver Government policy objectives. Tax expenditures are provided through a range of concessions, including tax exemptions, reduced tax rates, tax rebates, tax deductions and provisions which defer payment of a tax liability to a future period. Appendix B provides details of tax expenditure arrangements currently provided by the Queensland Government.

4.6 Grants

Grants revenue is comprised of Australian Government grants, grants from the community and industry, and other miscellaneous grants. The 2.7% decline in grants revenue in 2018-19 is driven by a decline in GST revenue and payments for specific purposes from the Commonwealth.

60

Budget Strategy and Outlook 2018-19

Table 4.4 Grants revenue¹

	2016-17 Actual $ million		2017-18 Est. Act. $ million		2018-19 Budget $ million		2019-20 Projection $ million		2020-21 Projection $ million		2021-22 Projection $ million
Current grants
GST revenue		13,939		15,210		14,794		14,598		14,946		15,699
Other Australian Government grants		10,302		11,066		10,950		11,333		11,862		12,454
Other grants and contributions		299		307		257		258		251		249
Total current grants		24,540		26,583		26,001		26,189		27,059		28,402
Capital grants
Australian Government grants		2,742		1,828		1,667		1,957		1,993		1,935
Other grants and contributions		101		70		33		10		9		50
Total capital grants		2,843		1,898		1,700		1,967		2,002		1,985
Total Australian Government2		26,983		28,105		27,411		27,888		28,802		30,088
Total grants revenue		27,383		28,481		27,701		28,156		29,062		30,387

Notes:

1. Numbers may not add due to rounding.

2. Queensland Treasury estimates. Differs from Chapter 7 due to the inclusion of direct Australian Government payments to Queensland agencies for Commonwealth own purpose expenditure.

4.6.1 Australian Government payments

Australian Government payments to Queensland in 2018-19 are expected to total $27.411 billion, representing a decrease of $694 million compared to payments in 2017-18. This decrease is made up of a $415 million (2.7%) decrease in GST revenue and a $278 million (2.2%) decrease in total payments for capital and other Australian Government grants.

The decline in GST revenue is due to Queensland receiving a reduced share of the GST pool in 2018-19, based on Commonwealth Grants Commission recommendations. The decrease in payments for specific purposes is mainly due to lower national partnership (NP) payments, particularly the cessation of the National Partnership on Remote Housing.

Chapter 7 provides detailed background on federal-state financial arrangements, including Queensland’s share of GST revenue and other Australian Government payments to Queensland.

4.6.2 Other grants and contributions

Other grants and contributions are funds received from other state and local government agencies, other bodies and individuals. Contributions exclude Australian Government grants and user charges. The main sources of contributions are those received from private enterprise and community groups to fund research projects and community services and contributed assets and goods and services received for a nominal amount.

61

Budget Strategy and Outlook 2018-19

4.7 Royalty revenue

The State earns royalties from the extraction of coal, base and precious metals, bauxite, petroleum and gas, mineral sands and other minerals. Royalties ensure some of the proceeds of the extraction of non-renewable resources are returned to the community. Land rents are also earned from pastoral holdings, and mining and petroleum leases. Royalties and land rents are detailed in Table 4.5.

Table 4.5 Royalties and land rents¹

	2016-17 Actual $ million		2017-18 Est. Act. $ million		2018-19 Budget $ million		2019-20 Projection $ million		2020-21 Projection $ million		2021-22 Projection $ million
Coal		3,405		3,768		3,522		3,135		2,774		2,866
Petroleum2		98		188		447		446		438		450
Other royalties3		376		371		479		506		515		506
Land rents		122		157		167		172		178		189
Total		4,000		4,484		4,615		4,260		3,904		4,011

Notes:

1. Numbers may not add due to rounding.

2. Includes CSG.

3. Includes base and precious metals and other minerals royalties.

The largest factor affecting upwards revisions to royalties since the 2017-18 Budget is the continued strength in the hard coking coal price, resulting in a significant uplift to price assumptions across 2018-19 and a more gradual return to a medium-term price assumption. While royalty revenue estimates in the 2017-18 MYFER were based on an expectation the hard coking coal price would decline from the end of 2017, prices increased further in the first few months of 2018 before declining on average between March and May 2018. Prices are expected to continue to progressively decline to a medium-term price of $US130/t.

There is a high degree of uncertainty associated with estimates of commodity prices, which can have significant impacts on royalty revenue. Risks to coal export volumes also have the potential to impact royalty estimates, though changes to export volumes may in turn impact prices. Specific risk factors are considered in developing forecasts and include the level of exposure of mining operations to the risk of natural disasters and the timing of scheduled maintenance for the rail network and ports. For 2018, the potential for reduced throughput over the Aurizon Network following the economic regulator’s draft decision on the 2017 Draft Access Undertaking is also a consideration, although any impact is not expected to be significant and coal exports are expected to be higher overall in 2018-19. Appendix C outlines the sensitivity of coal royalty estimates to individual changes in price, volume and exchange rate parameters.

62

Budget Strategy and Outlook 2018-19

At the same time, the contribution of royalties to overall revenue growth and volatility is limited by its quantum. Royalties make up 7.7% of total revenue in 2018-19, compared to 24.5% for state taxes and 25.6% for GST.

Royalty revenue exceeded the previous 2008-09 peak for the first time in 2016-17, and increased by a further 11.6% in 2017-18 as coal prices remained strong and petroleum (including LNG) royalties increased.

While royalties are expected to grow modestly in 2018-19, a gradual decline of 3.1% is expected per year on average over the four years to 2021-22. While the coal price is expected to decline 9.9% per year on average as it returns to medium-term levels, total royalties are expected to be supported by growth in other factors, such as coal volumes and stronger petroleum revenue from increased Brent oil prices.

Assumptions underlying the royalty estimates, and the sensitivity of royalty estimates to changes in the assumptions are contained in Appendix C.

4.7.1 Coal Royalties

Chart 4.5 shows coking coal price forecasts compared to the 2017-18 Budget and average quarterly price from the latest Consensus Economics forecasts. Consensus Economics is a monthly survey of more than 40 energy and metals analysts outlining their price forecasts for a range of commodities. The Australian Government’s 2018-19 Budget assumed that the coking coal spot price would fall over the June and September quarters of 2018 to reach US$120 per tonne by the December 2018 quarter.

Revisions since the 2017-18 Budget are in line with Consensus Economics forecasts in the next few years, with a degree of conservatism in the medium-term.

63

Budget Strategy and Outlook 2018-19

Chart 4.5 Coking coal price forecasts by iteration¹

Sources: Queensland State Budget 2017-18 and 2018-19 and Consensus Economics Energy and Metals May 2018.

Hard coking coal prices increased sharply in the second half of 2016, driven by factors such as a program of rationalisation for China’s coal production, as well as logistical bottlenecks and seaborne supply constraints. Across 2017, coal prices remained above the historical average shown in Chart 4.6 but displayed moderate volatility, declining rapidly in the early months of 2017 but increasing again following Severe Tropical Cyclone Debbie. While strengthening global economic conditions are supporting a continued strength in coal prices during 2018, royalty forecasts incorporate a gradual decline in coal prices to $US130/t by 2020-21.

On a year average basis, the premium hard coking coal price is estimated to increase 2.6% in 2017-18 to $US198 per tonne, and is expected to decline 18.5% to $US161 per tonne in 2018-19.

64

Budget Strategy and Outlook 2018-19

Chart 4.6 Coking coal price

Source: Consensus Economics and Queensland Treasury.

4.7.2 Petroleum royalties

Oil prices factor strongly into royalty forecasts, with most of the LNG produced in Queensland sold under long-term contracts linked to oil prices. Since the 2017-18 Budget, estimates of Brent oil prices have been revised up by 28.8% to $US73 per barrel on average in 2018-19. Prices are expected to moderate from current levels as the impact of temporary factors affecting supply is reduced, leading to smaller royalty increases in 2019-20 and 2020-21. Oil prices are expected to remain steady from 2019-20, consistent with expectations for production and consumption remaining at similar levels. Forecasts of the Brent oil price are detailed in Appendix C and are similar to Consensus Economics forecasts. Forecasts of LNG volumes are similar to the 2017-18 Budget.

Significant growth in LNG exports over the last few years is supporting growth in petroleum royalty forecasts. Efforts to support LNG industry growth in Queensland also has broader benefits including job creation, and in turn supports increased revenue collection by the Australian Government.

Petroleum royalties have been revised up by $253 million in 2018-19 since the 2017-18 Budget, mainly resulting from increased Brent oil prices. The value of coal seam gas, which is largely based on export LNG prices less allowable deductions, has meant that increased oil prices have had a proportionally larger impact on petroleum royalties.

65

Budget Strategy and Outlook 2018-19

4.7.3 Other royalties

Other royalties include revenue from metals mined in Queensland such as copper, lead and zinc and other minerals including bauxite. Revenue from other royalties is expected to grow 29.0% in 2018-19, supported by a stronger outlook for base and precious metals prices. This follows small declines of 1.4% in 2016-17 and 1.2% in 2017-18.

4.7.4 Land rents

Revenue from land rents derived from mining and petroleum leases and pastoral holdings are expected to grow 6.1% in 2018-19.

4.8 Sales of goods and services

Sales of goods and services revenue comprises cost recoveries from providing goods or services. Table 4.6 provides a breakdown of the category.

The Government provides concessions in the form of discounts, rebates and subsidies to improve access to and the affordability of a range of services for individuals or families, based on eligibility criteria relating to factors such as age, income and special needs or disadvantage. Appendix A provides details of the concession arrangements provided by the Queensland Government.

Table 4.6 Sales of goods and services¹

	2016-17 Actual $ million		2017-18 Est. Act. $ million		2018-19 Budget $ million		2019-20 Projection $ million		2020-21 Projection $ million		2021-22 Projection $ million
Fee for service activities		2,370		2,377		2,135		2,221		2,199		2,202
Public Transport: South East Queensland		356		338		344		353		362		363
Rent revenue		533		577		597		628		661		830
Sale of land inventory		65		52		59		66		97		98
Hospital fees		794		859		879		892		907		919
Transport and traffic fees		398		426		448		467		485		504
Other sales of goods and services		1,127		1,233		1,269		1,320		1,363		1,390
Total		5,642		5,861		5,731		5,947		6,074		6,306

Note:

1. Numbers may not add due to rounding.

66

Budget Strategy and Outlook 2018-19

4.8.1 Fee for service activities

Major items of fee for service activities across the General Government Sector include:

• recoverable works carried out by the Department of Transport and Main Roads and the commercialised arm of the department

• fees charged by Technical and Further Education (TAFE) colleges

• fees charged by CITEC to commercial clients for information brokerage services.

4.8.2 Other sales of goods and services

As shown in Table 4.6, there are a variety of other types of sales of goods and services. These include revenue from public transport ticketing arrangements, rent or lease of government property, hospital fees, transport and traffic fees, title registration fees and other licences and permits.

4.9 Interest income

Interest income primarily comprises interest earned on investments, including those held for superannuation and insurance purposes.

Interest income is estimated to account for 3.8% of total General Government Sector revenue in 2018-19. Consistent with the 2017-18 Budget, interest income is expected to decline between 2017-18 and 2021-22 due to a reduction in the portfolio of financial assets held for defined benefit superannuation and in the Queensland Government Insurance Fund.

4.10 Dividend and income tax equivalent income

Dividend and income tax equivalent income accounts for 3.8% of total General Government Sector revenue in 2018-19.

Estimated revenue from dividend and income tax equivalent income in 2017-18 has been revised upwards by $629 million since the 2017-18 Budget, supported by increased earnings from electricity generation and network businesses. In 2018-19, dividend and income tax equivalent income is expected to decline $469 million mainly from the electricity generation and electricity network sectors. Dividend and income tax equivalent income is expected to decline over the four years to 2021-22, driven by reductions in dividend returns from the electricity network, electricity generation and water sectors. Trends in dividends and income tax equivalent income are discussed in more detail in Chapter 8.

67

Budget Strategy and Outlook 2018-19

4.11 Other revenue

Other revenue, including royalty revenue, accounts for 9.9% of total General Government Sector revenue in 2018-19. Royalties themselves account for 7.7% of revenue in 2018-19, and are discussed in section 4.7.

The major fines and infringements included in this category are issued by the Department of Transport and Main Roads (DTMR) and Queensland Police Service (QPS), incorporating fixed and mobile camera offences, speeding and tolling offences. Revenue from fines and forfeitures are expected to grow by 11.5% in 2018-19.

Table 4.7 Other revenue¹

	2016-17 Actual $ million		2017-18 Est. Act. $ million		2018-19 Budget $ million		2019-20 Projection $ million		2020-21 Projection $ million		2021-22 Projection $ million
Royalties and land rents		4,000		4,484		4,615		4,260		3,904		4,011
Fines and forfeitures		375		400		446		471		507		520
Revenue not elsewhere classified		847		739		672		664		672		682
Total		5,222		5,623		5,733		5,395		5,083		5,212

Note:

1. Numbers may not add due to rounding.

68

Budget Strategy and Outlook 2018-19

5 Expenses

Features

• The 2018-19 Budget continues to target initiatives that drive more inclusive economic growth and job creation, reduce the cost of living pressures and enhance the safety, security and liveability of Queensland communities.

• Expenses for 2017-18 are estimated to be $56.747 billion, an increase of $3.374 billion (or 6.3%) from 2016-17. The increase is due to growth funding to support ongoing demand for health services and student enrolments, expenditure in relation to the final preparation and delivery of the Gold Coast 2018 Commonwealth Games and establishment of a provision for the anticipated costs of Queensland participating in the National Redress Scheme for Survivors of Institutional Child Sexual Abuse (National Redress Scheme).

• Total expenses are projected to grow at an average annual rate of 2.9% over the five years to 2021-22. This is a reduction from last year’s budget projected rate of 3.2% over the five years to 2020-21.

• In 2018-19, General Government Sector expenses are estimated to be $57.590 billion, an expected increase of $843 million (or 1.5%) over the estimated actual for 2017-18. The increase is a result of continued demand growth in education, health and community services.

• The average growth in employee expenses over the five years to 2021-22 is 4.5% per annum, reflecting growth in full time equivalents (FTEs) and the Government’s wages policy.

• In 2018-19, the major areas of expenditure are health and education, which together constitute approximately 54.4% of General Government Sector expenses, the highest ever proportional spend on these services.

This chapter provides an overview of General Government Sector expenses for the estimated actual for 2017-18, forecasts for the 2018-19 Budget year and projections for 2019-20 to 2021-22. The forward estimates are based on the economic projections outlined in Chapter 2.

5.1 2017-18 estimated actual

General Government Sector expenses in 2017-18 are estimated to be $56.747 billion, $767 million higher than the 2017-18 Mid Year Fiscal and Economic Review (MYFER) estimate. The increase since MYFER is largely driven by provisioning for the anticipated costs of Queensland participating in the National Redress Scheme for Survivors of Institutional Child Sexual Abuse, and the Australian Government’s advance payment of financial assistance grants to local governments in 2017-18 for the 2018-19 financial year.

69

Budget Strategy and Outlook 2018-19

5.2 2018-19 Budget and out-years

Table 5.1 General Government Sector expenses¹

	2016-17 Actual $ million		2017-18 Est. Act. $ million		2018-19 Budget $ million		2019-20 Projection $ million		2020-21 Projection $ million		2021-22 Projection $ million
Employee expenses		21,258		22,838		23,807		24,645		25,541		26,466
Superannuation interest costs		514		665		667		717		774		778
Other superannuation expenses		2,661		2,819		2,887		2,933		2,957		3,001
Other operating expenses		15,582		17,382		15,774		15,119		15,291		15,745
Depreciation and amortisation		3,068		3,330		3,429		3,543		3,650		3,776
Other interest expenses		1,722		1,616		1,474		1,643		1,691		1,794
Grants expenses		8,568		8,096		9,552		10,075		9,926		10,019
Total Expenses		53,373		56,747		57,590		58,675		59,829		61,579

Note:

1. Numbers may not add due to rounding.

General Government Sector expenses of $57.590 billion in 2018-19 represent an increase of $843 million (or 1.5%) over the 2017-18 estimated actual. Factors influencing the higher expenditure in 2018-19 include:

• delivery of the Government’s election commitments including additional frontline nurses, police and firefighters

• growth in demand for health services

• growth in education expenditure reflecting student enrolment growth in Queensland schools, enterprise bargaining outcomes, maintaining secondary curriculum offerings for the half year cohort of students going into senior secondary and review of salary classification of school administration and support staff

• job creation initiatives including Works for Queensland, Back to Work Packages, Skilling Queenslanders for Work and Jobs and Regional Growth package

• community services initiatives continuing to improve the child protection system and support of the transition of disability services to the National Disability Insurance Scheme (NDIS)

• costs associated with the introduction of the new Waste Disposal Levy including implementation costs, advance payments to local councils and industry support funding.

70

Budget Strategy and Outlook 2018-19

Expenditure largely isolated to 2017-18 for the delivery of Gold Coast 2018 Commonwealth Games and the provision for the anticipated cost of Queensland’s participation in the National Redress Scheme contribute to the observed reduced growth in 2018-19 expenses. Growth in 2018-19 is also impacted by the Australian Government’s advance payment of financial assistance grants in 2017-18 for 2018-19 and the 2018-19 whole-of-Government reprioritisation measures (refer to Budget Paper 4 Budget Measures).

5.3 Expenses by operating statement category

As outlined in Chart 5.1, the largest expense categories in the General Government Sector in 2018-19 are employee and superannuation expenses (47.4%), followed by other operating expenses (27.4%) that reflect non-labour costs of providing goods and services to government and non-government recipients including consultancies and contractors, transport service contract payments and repairs and maintenance.

Chart 5.1 Expenses by operating statement category, 2018-19

Chart 5.2 identifies the growth in expenses for each operating statement category between the 2017-18 estimated actual and the 2018-19 Budget. The fastest growth is in grant expenses, which primarily reflects the change in service delivery model of disability services with the State progressively transitioning to the National Disability Insurance Scheme (NDIS).

71

Budget Strategy and Outlook 2018-19

Chart 5.2 Growth in expenses by operating statement category - 2017-18 estimated actual to 2018-19 Budget

5.3.1 Employee expenses

Employee expenses include salaries and wages, annual leave and long service leave.

In 2018-19, employee expenses are expected to be $23.807 billion, $969 million or 4.2% higher than the 2017-18 estimated actual. This reflects both growth in full-time equivalents (FTEs) and the Government’s 2.5% wages policy. Much of the increase in employee expenses in 2018-19 is the key frontline service areas of health and education reflecting increasing demand for health services and student population growth.

Full-time equivalents

During the 2015 election, the Government made commitments to revitalise frontline service delivery. This resulted in FTEs increasing 14,269 (or 7.1%) in 2015-16 and 2016-17, and an estimated further 8,380 (or 3.88%) in 2017-18. Between March 2015 and March 2018:

• teachers increased by 3,634 (or 8.6%)

• teacher aides increased by 1,135 (or 12.2%)

• nurses increased by 4,828 (or 17.3%)

• health practitioners increased by 1,488 (or 15.2%)

• doctors increased by 1,605 (or 20.3%)

• ambulance officers increased by 376 (or 10.2%)

• police officers increased by 302 (or 2.7%).

72

Budget Strategy and Outlook 2018-19

As at March 2018, 90.5% of public servants were engaged in frontline and frontline support roles. Chart 5.3 shows actual FTEs from 2005-06 to 2016-17 and estimated FTEs from 2017-18 to 2021-22.

Chart 5.3 Departmental FTEs

FTE growth is moderating. FTEs are estimated to increase by around 3,833 (or 1.71%) in 2018-19, with the majority of the increase being attributable to growth in health and education. These additional FTEs will continue to reduce the number of patients waiting longer than the recommended time, relieve pressure on class sizes and continue to improve student outcomes.

Given the tight fiscal environment and the fact that employee expenses represent the State’s largest expense category, the Government introduced a new fiscal principle in the 2016-17 Budget to maintain a sustainable public service where overall growth in FTEs, on average over the forward estimates, does not exceed population growth.

The overall average annual growth rate over 2017-18 to 2021-22, based on current estimates, is 1.71%. This compares to an estimated Queensland population growth of 1³⁄₄% annually. To enable ongoing monitoring, the Queensland Public Service Commission (PSC) will continue to collect agency workforce data on a quarterly basis for analysis and reporting purposes.

73

Budget Strategy and Outlook 2018-19

Box 5.1 Better data to drive decision making

As noted in previous years’ Budget Paper 2 Budget Strategy and Outlook, issues have existed for many years with collecting and reporting information about FTEs in the Queensland public service.

These issues have arisen primarily due to the existence of two methodologies to calculate the number of FTEs, and scope of agencies included within the reported numbers. The Minimum Obligatory Human Resource Information (MOHRI) data is published in quarterly Workforce Profile reports and used primarily for broader human resources planning purposes. The Budget FTE number is used to monitor the actual number of FTEs being paid by an agency.

The PSC, with support from Queensland Treasury, has been working on strategies to reduce inconsistencies and improve the quality of data being reported. This has included restructuring parts of the quarterly Workforce Profile reports so that the data for agencies that are included in Budget Paper 2, Table 5.2 is shown separately from those that are not.

The Government acknowledges that there are still limitations surrounding the use of the MOHRI data. The key limitation of the MOHRI methodology is the inconsistency with how employee expenses are accounted for and monitored in agencies. Further, the complexity of the MOHRI methodology means that data on FTEs is not readily available in a timely fashion.

The Government will improve the quality of information by:

• enhancing data collection, reporting and monitoring of indirect employment, such as the use of labour hire, contractors and consultants

• working with agencies to improve geographical reporting, including by postcode

• reviewing the contents of the Workforce Profile reports to assess whether they are meeting the needs of users or whether further opportunities exist to provide tailored reporting, to be reported on by the 2018-19 MYFER

• reviewing occupational codes to identify whether any additional key occupational groups exist which should be reported upon.

The Government is also committed to ensuring that public service staff are located where they are needed in the community. Around 32% of FTEs are located outside South East Queensland, consistent with population share. Regional Action Plans show increases in key service delivery occupations across the regions.

The devolved frontline service delivery models used in some agencies continue to present challenges for FTE estimation and monitoring, in particular when funding is provided in such a way that agencies determine how to most efficiently deliver services. Consistent with last year, the 2018-19 Budget FTE estimates build in an allowance for this.

Table 5.2 shows the funded FTE positions by department and is consistent with agency Service Delivery Statements.

74

Budget Strategy and Outlook 2018-19

Table 5.2 Funded controlled FTE positions by Department^1,2

	2017-18 Adj. Budget3		2017-18 Est. Act		2018-19 Budget
Aboriginal and Torres Strait Islander Partnerships		315		327		324
Agriculture and Fisheries		2,089		2,131		2,128
Child Safety, Youth and Women4		4,631		4,638		4,834
Communities, Disability Services and Seniors4,5		2,675		2,676		2,241
Education		70,340		71,296		72,784
Electoral Commission of Queensland		56		56		60
Employment, Small Business and Training4		4,538		4,517		4,432
Environment and Science		3,074		3,083		3,093
Housing and Public Works		5,510		5,512		5,541
Innovation, Tourism Industry Development and the Commonwealth Games		193		194		173
Justice and Attorney-General		3,362		3,369		3,449
Local Government, Racing and Multicultural Affairs		178		181		188
Natural Resources, Mines and Energy		2,669		2,676		2,665
Office of the Inspector-General Emergency Management		22		22		22
Premier and Cabinet		480		478		467
Public Safety Business Agency		1,144		1,129		1,117
Public Service Commission		73		73		70
Queensland Audit Office		197		182		182
Queensland Corrective Services4		4,868		5,005		5,039
Queensland Fire and Emergency Services		3,280		3,280		3,321
Queensland Health (total-disaggregation below)		87,396		87,610		90,095
Queensland Police Service		15,463		15,566		15,696
Queensland Treasury		975		994		994
State Development, Manufacturing, Infrastructure and Planning		1,013		1,058		1,045
The Public Trustee of Queensland		609		611		615
Transport and Main Roads		7,490		7,505		7,427
Total		222,639		224,169		228,002

75

Budget Strategy and Outlook 2018-19

	2017-18 Adj. Budget3		2017-18 Est. Act		2018-19 Budget
Queensland Health Disaggregation
Health		7,415		7,497		7,645
Queensland Ambulance Service		4,346		4,402		4,507
Cairns and Hinterland Hospital and Health Service		4,923		4,937		4,971
Central Queensland Hospital and Health Service		2,890		2,980		3,052
Central West Hospital and Health Service		373		380		373
Children’s Health Queensland Hospital and Health Service		3,608		3,792		3,700
Darling Downs Hospital and Health Service		4,315		4,396		4,549
Gold Coast Hospital and Health Service		7,482		7,635		8,063
Mackay Hospital and Health Service		2,160		2,286		2,312
Metro North Hospital and Health Service		15,750		15,832		16,165
Metro South Hospital and Health Service		12,604		13,275		12,882
North West Hospital and Health Service		702		716		782
South West Hospital and Health Service		777		806		819
Sunshine Coast Hospital and Health Service		6,540		5,970		6,400
Torres and Cape Hospital and Health Service		926		961		943
Townsville Hospital and Health Service		5,180		5,381		5,401
West Moreton Hospital and Health Service		3,243		3,284		3,572
Wide Bay Hospital and Health Service		3,049		3,080		3,132
Funded unallocated FTEs6		1,113		—		827
Total Queensland Health		87,396		87,610		90,095

Notes:

1. Numbers may not add due to rounding.

2. Explanation of variations in departmental FTEs can be found in the Service Delivery Statements (SDSs). Departmental totals may include multiple tables from Service Delivery Statements, due to separate FTE tables being provided for Commercialised Business Units.

3. Adjusted Budget reflects movements of FTEs following Machinery of Government changes only.

4. Differs from SDSs due to departmental transfers which were not classified as Machinery of Government changes in the SDS.

5. Decline in FTEs in 2018-19 reflects the transfer of clients with disability to the National Disability Insurance Scheme (NDIS).

6. Funded unallocated FTEs represents estimates of additional FTEs which have not yet been allocated to particular Hospital and Health Services.

76

Budget Strategy and Outlook 2018-19

5.3.2 Superannuation expenses

The superannuation interest cost represents the imputed interest on the Government’s accruing defined benefit superannuation liabilities.

In determining the State’s defined benefit superannuation liabilities, AASB 119 Employee Benefits requires the discounting of future benefit obligations using yield rates on Government bonds net of investment tax. Interest costs are calculated on a net liability approach by applying the discount rate to both the gross liability and superannuation plan assets.

Superannuation interest costs are dependent on the applicable discount rates and increase marginally over the forward estimates as these rates increase. The defined benefit scheme, which is closed to new members and subject to interest rate fluctuations, will decline over time as members leave.

Other superannuation expenses represent employer superannuation contributions to accumulation superannuation and the current service cost of the State’s defined benefit obligation (or the increase in the present value of the defined benefit obligation resulting from employee service in the current period).

5.3.3 Other operating expenses

Other operating expenses comprise the non-labour costs of providing goods and services, including services to government and non-government organisations, repairs and maintenance, consultancies, contractors, electricity, communications and marketing.

In 2018-19, other operating expenses are expected to be $15.774 billion, a decrease of $1.609 billion or 9.3% lower compared to the 2017-18 estimated actual.

Other operating expenses decline significantly in 2018-19 due to:

• delivery of the Gold Coast 2018 Commonwealth Games in 2017-18

• the Government provisioning in 2017-18 for Queensland’s participation in the National Redress Scheme

• continuing transition of specialist disability services to the NDIS. Queensland’s contributions to the NDIS are reflected as grants expenses.

Other operating expenses continue to decline in 2019-20 following the final year of transition to the NDIS in 2018-19.

77

Budget Strategy and Outlook 2018-19

5.3.4 Depreciation and amortisation

Depreciation and amortisation expense is an estimate of the progressive consumption of the State’s assets through normal usage, wear and tear and obsolescence. Growth in this expense category primarily reflects asset revaluations and the increasing investment in State infrastructure.

Depreciation expenses have increased since the 2017-18 MYFER in all years of the forward estimates following revisions for transport and health infrastructure.

5.3.5 Other interest expenses

Other interest expenses include interest paid on borrowings to acquire capital assets and infrastructure such as roads and government buildings.

Other interest expenses are estimated to decline $142 million in 2018-19 to $1.474 billion compared to $1.616 billion in 2017-18.

Interest costs have fallen significantly since the recent peak of $2.328 billion in 2014-15. The decline in General Government Sector debt servicing costs is due in part to the repatriation of surplus defined benefit superannuation assets and other balance sheet measures.

5.3.6 Grants expenses

Current grants include grants and subsidies to the community (such as non-state schools, hospitals, benevolent institutions and local governments) and personal benefit payments. Community Service Obligations (CSOs) are provided where Public Non-financial Corporations (PNFCs) are required to provide non-commercial services or services at non-commercial prices for the benefit of the community (for further details refer to Chapter 8).

Capital grants represent transfers to the PNFC Sector, local governments, not-for-profit institutions and other non-government entities, such as business and households (including the Queensland First Home Owners’ Grant and non-state schools) for capital purposes.

Table 5.3 provides a breakdown of grants by category and recipient type.

78

Budget Strategy and Outlook 2018-19

Table 5.3 Grants expenses¹

	2016-17 Actual $ million		2017-18 Est. Act. $ million		2018-19 Budget $ million
Current
Grants to local government		905		744		603
Grants to private and not-for-profit organisations
State funding for non-state schools		664		688		683
Australian Government funding for non-state schools		2,393		2,537		2,670
Other		1,220		1,434		1,514
Grants to other sectors of government
Community service obligations to PNFCs		615		499		472
Other payments to PNFCs		797		37		44
Other (includes payments to NDIA)		157		411		1,653
Other		437		305		238
Total current grants		7,189		6,656		7,878
Capital
Grants to local government		732		976		1,064
State funding for non-state schools		93		93		98
Grants to private and not-for-profit organisations		361		144		359
Payments to PNFCs		29		16		13
Queensland First Home Owners’ Grants		158		201		140
Other		6		10		—
Total capital grants		1,379		1,440		1,674
Total current and capital grants		8,568		8,096		9,552

Note:

1. Numbers may not add due to rounding.

In 2017-18, total grant expenses are estimated to be $8.096 billion; $472 million lower than 2016-17. This decrease is mainly due to:

• the payment in 2016-17 of the $771 million Electricity Affordability grant to Energy Queensland to remove the costs of the Solar Bonus Scheme from retail electricity prices from 2017-18 to 2019-20

• the Australian Government’s payment in 2016-17 of the financial assistance grants to local governments for both 2016-17 and 2017-18. The 2018-19 grant will be paid in 2017-18.

The effect of these grant payments in 2016-17 were partially offset in 2017-18 by increased funding to non-state schools, grants under the Government’s job creation programs, First Home Owners’ Grants and payments by the State to the National Disability Insurance Agency (NDIA) on the progressive transition to the NDIS.

79

Budget Strategy and Outlook 2018-19

In 2018-19, total grant expenses are estimated to be $9.552 billion, an increase of $1.456 billion from 2017-18. The increase in grants expenses is mainly due to grants to other sectors of government, reflecting the change in service delivery model of disability services with the State progressively transitioning to the NDIS, higher capital grants to local councils under Natural Disaster Relief and Recovery Arrangements, waste strategy measures supported by the waste disposal levy and various election commitment expense measures. The increase in grants expenses in 2018-19 is partly offset by the Australian Government again making advance payment of the 2018-19 financial assistance grants to local councils in 2017-18.

5.4 Operating expenses by purpose

Chart 5.4 indicates the proportion of expenditure by major purpose classification for the 2018-19 Budget. Health accounts for the largest share of expenses (30.1%) followed by Education (24.3%).

The Australian Bureau of Statistics introduced a revised Classification of the Functions of Government Australia Framework, effective 1 July 2017, which has resulted in some reclassification of expenditure between purposes.

Chart 5.4 General Government Sector expenses by purpose, 2018-19

80

Budget Strategy and Outlook 2018-19

5.5 Departmental expenses

Data presented in Tables 5.4 and 5.5 provide a summary drawn from financial statements contained in the Service Delivery Statements (SDS). Further information on the composition of expenses, outputs delivered and factors influencing the movement in expenses can also be obtained from a department’s SDS.

Table 5.4 Departmental controlled expense^1,2

	2017-18 Est. Act. $ 000		2018-19 Budget $ 000
Aboriginal and Torres Strait Islander Partnerships		90,905		86,868
Agriculture and Fisheries		470,493		481,707
Child Safety, Youth and Women		801,680		1,625,340
Communities, Disability Services and Seniors		2,130,417		868,802
Education		9,371,431		9,421,193
Electoral Commission of Queensland		58,286		48,033
Employment, Small Business and Training		569,445		1,074,848
Energy and Water Supply3		43,796		—
Environment and Science		548,345		813,880
Health Consolidated4		16,865,940		17,317,943
Housing and Public Works		2,193,512		2,469,903
Innovation, Tourism Industry Development and the Commonwealth Games		372,003		222,834
Inspector General Emergency Management		4,876		4,887
Justice and Attorney-General		1,081,575		602,728
Legislative Assembly		97,415		98,193
Local Government, Racing and Multicultural Affairs		484,553		436,063
National Parks, Sport and Racing3		152,700		—
Natural Resources, Mines and Energy		530,990		663,388
Office of the Governor		7,126		7,174
Office of the Ombudsman		8,677		9,205
Premier and Cabinet5		205,286		116,370
Public Safety Business Agency		437,286		422,577
Public Service Commission		15,969		14,598
Queensland Audit Office		42,667		43,821
Queensland Corrective Services		469,406		951,883
Queensland Fire and Emergency Services		678,022		702,492
Queensland Police Service		2,320,969		2,325,591
Queensland Treasury		321,494		256,965
Science, Information Technology and Innovation3		176,127		—
State Development, Manufacturing, Infrastructure and Planning		401,707		595,992
The Public Trustee of Queensland		88,154		95,362
Transport and Main Roads		5,728,206		5,885,706
Total expenses		46,769,458		47,664,346

81

Budget Strategy and Outlook 2018-19

Notes:

1. Total expenses by department do not equate to total General Government expenses in Uniform Presentation Framework (UPF) terms reported elsewhere in the Budget Papers as General Government expenses include a wider range of entities including State Government statutory authorities. In addition, transactions eliminated between entities within the General Government Sector are excluded in the preparation of whole-of-Government UPF financial statements.

2. Explanation of variations in departmental controlled expenses can be found in the Service Delivery Statements.

3. Ceased 12 December 2017.

4. This represents Health Consolidated in the Service Delivery Statement, which consolidates Queensland Health controlled, the Hospital and Health Services, and Queensland Ambulance Service.

5. Excludes Corporate Administration Agency.

82

Budget Strategy and Outlook 2018-19

Table 5.5 Departmental administered expense^{1, 2}

	2017-18 Est. Act. $ 000		2018-19 Budget $ 000
Aboriginal and Torres Strait Islander Partnerships		14,261		12,518
Agriculture and Fisheries		27,717		40,370
Child Safety, Youth and Women		494,601		5,868
Communities, Disability Services and Seniors		811,834		1,929,471
Education		3,413,315		3,550,845
Energy and Water Supply3		233,064		—
Environment and Science		71,194		139,452
Health		73,784		18,748
Housing and Public Works		23,892		52,079
Innovation, Tourism Industry Development and the Commonwealth Games		625,534		107,889
Justice and Attorney-General		400,860		415,442
Local Government, Racing and Multicultural Affairs		750,723		247,124
National Parks, Sport and Racing3		31,688		—
Natural Resources, Mines and Energy		335,764		533,012
Premier and Cabinet		137,247		123,127
Queensland Police Service				734
Queensland Treasury		6,002,470		6,049,595
Science, Information Technology and Innovation3		37,433		—
State Development, Manufacturing, Infrastructure and Planning		222,792		604,240
The Public Trustee of Queensland		604		—
Total expenses		13,708,777		13,830,514

Notes:

1. Total expenses by department does not equate to total General Government expenses in Uniform Presentation Framework (UPF) terms reported elsewhere in the Budget Papers as General Government expenses include a wider range of entities including State Government statutory authorities. In addition transactions eliminated between entities within the General Government Sector are excluded in the preparation of whole-of-Government UPF financial statements.

2. Explanation of variations in departmental administered expenses can be found in the Service Delivery Statements.

3. Ceased 12 December 2017.

83

Budget Strategy and Outlook 2018-19

6 Balance sheet and cash flows

Features

• Due to a stronger than expected 2017-18 operating surplus, borrowing in 2017-18 is expected to remain below projections in the 2017-18 MYFER and be nearly $2.4 billion lower than projected in the 2017-18 Budget.

• General Government Sector debt is expected to increase slightly from $31.367 billion in 2017-18 to $32.311 billion in 2018-19. This is $1.6 billion lower than the projection for 2018-19 at the time of the 2017-18 MYFER and over $4 billion lower than 2017-18 budget.

• The reduction in General Government debt in 2017-18 has provided the Government with the capacity to fund essential infrastructure and capital works over the forward estimates, while General Government debt and Non-financial Public Sector (NFPS) debt remains lower each year than predicted in the 2017-18 Budget.

• The State’s net worth, the amount by which its assets exceed its liabilities, is forecast to be over $208 billion by 2020-21, $2.35 billion higher than at the time of the 2017-18 MYFER. The increase since the 2017-18 MYFER predominantly reflects lower than expected borrowing as a result of the strong 2017-18 operating surplus.

• At the time of 2017-18 MYFER, net cash inflows from operating activities for 2017-18 were expected to cover 68.9% of net investments in Non-financial Assets (NFAs) for the General Government Sector. The estimated actual coverage is now expected to be nearly 100%.

• The total capital program for 2018-19 Budget of $45.769 billion for the period 2018-19 to 2021-22 is comprised of $40.543 billion of Purchases of Non-financial Assets (PNFA), $4.074 billion of capital grant expenses and acquisitions of non-financial assets under finance leases of $1.151 billion.

6.1 Context

The balance sheet shows the projected assets, liabilities and net worth of the General Government Sector as at 30 June each financial year. It is important for the Government to maintain a strong balance sheet to provide it with stability, flexibility and capacity to deal with emerging financial and economic pressures, and to provide a strong foundation for future economic growth.

The cash flow statement shows the expected cash flows of the General Government Sector during each financial year of the forward estimates. The main difference between the accrual operating statement and the cash flow relates to the timing of cash payments and receipts and their recognition in accrual terms and the inclusion of non-cash expenses and revenues. The largest differences between accrual accounting and cash flows are in relation to depreciation and superannuation. Differences due to the timing of receipt or payment of amounts are recorded as either a receivable or payable in the balance sheet.

84

Budget Strategy and Outlook 2018-19

6.2 Balance Sheet

Table 6.1 provides a summary of the key balance sheet aggregates for the General Government Sector.

Table 6.1 General Government Sector: summary of budgeted balance sheet¹

	2017-18 Budget $ million			2017-18 Est. Act. $ million			2018-19 Budget $ million			2019-20 Projection $ million			2020-21 Projection $ million			2021-22 Projection $ million
Financial assets		60,814			61,544			59,460			58,581			58,642			58,458
Non-financial assets		212,407			210,900			214,752			219,987			224,570			229,016
Total assets		273,222			272,443			274,212			278,568			283,213			287,474
Borrowings		33,758			31,367			32,311			35,861			39,588			42,290
Advances and deposits		1,544			2,231			1,816			1,533			1,367			1,384
Superannuation liability		23,355			25,294			23,414			21,334			19,946			18,877
Other provisions and liabilities		12,642			13,865			14,034			14,065			14,211			14,407
Total liabilities		71,299			72,757			71,575			72,793			75,112			76,958
Net worth		201,922			199,686			202,636			205,775			208,101			210,515
Net financial worth		(10,485	)		(11,213	)		(12,115	)		(14,211	)		(16,470	)		(18,501	)
Net financial liabilities		33,273			34,216			35,928			38,362			40,540			42,462
Net debt		1,622			(267	)		2,815			7,336			11,018			13,707

Note:

1. Numbers may not add due to rounding and bracketed numbers represent negative numbers.

6.2.1 Financial assets

The General Government Sector holds the equity of the State’s public enterprises, principally its shareholding in government-owned corporations (GOCs) but also Public Financial Corporations like Queensland Treasury Corporation (QTC), in much the same manner as the parent or holding company in a group of companies. The estimated investment in public enterprises is included in the General Government Sector’s financial assets.

Financial assets of $61.544 billion are estimated for 2017-18, $730 million higher than originally budgeted for 2017-18. Receivables are $333 million higher than budgeted, which includes dividends from other sectors.

Between 2017-18 and 2019-20, financial assets are projected to decrease by $2.963 billion as investments are repatriated from the actuarially assessed defined benefit superannuation fund and Queensland Government Insurance Fund (QGIF) surpluses. These repatriations, announced in previous budgets, will be used to fund the State Infrastructure Fund and additional priority capital projects as well as reducing debt.

85

Budget Strategy and Outlook 2018-19

Chart 6.1 shows forecast General Government Sector financial assets by category at 30 June 2019. Investments held to meet future liabilities, including superannuation and insurance, comprise the major part of the State’s financial assets.

Chart 6.1 Forecast General Government Sector financial assets by category, at 30 June 2019

6.2.2 Non-financial assets

General Government Sector non-financial assets are estimated to total $210.9 billion at 30 June 2018, $1.507 billion lower than forecast at 2017-18 Budget and $281 million higher than in the 2017-18 MYFER.

The decrease since the 2017-18 Budget reflects the flow through of a net downward revaluation at 30 June 2017 primarily for road infrastructure assets. These revaluations were incorporated into the 2017-18 MYFER.

NFAs in 2018-19 are expected to grow by $3.852 billion over the 2017-18 estimated actuals, to be $214.752 billion at 30 June 2019. These assets consist primarily of land and other fixed assets of $207.985 billion, the majority of which are roads, schools, hospitals and other infrastructure used to provide services to Queenslanders. Other non-financial assets of $6.767 billion held by the State include prepayments and deferred income tax assets relating to GOCs.

86

Budget Strategy and Outlook 2018-19

General Government Sector capital expenditure for 2018-19 is forecast to be $7.601 billion, which comprises $5.927 billion of PNFA, and $1.674 billion of capital grant expenses. In addition to these, acquisitions of non-financial assets under finance leases are forecast to be $864 million, bringing the total General Government Sector capital program for 2018-19 to $8.465 billion.

Over the four years to 2021-22, General Government Sector capital expenditure is forecast to be $32.078 billion, which comprises $27.961 billion of PNFA, and $4.117 billion of capital grant expenses. Acquisitions of non-financial assets under finance leases are forecast to be $1.151 billion, bringing the total General Government Sector capital program over the period to $33.229 billion.

General Government Sector PNFA are forecast to increase from $4.905 billion in the 2017-18 estimated actual to $7.081 billion in 2021-22. This increase reflects the Government’s commitment to providing essential infrastructure and capital works to deliver productivity enhancing infrastructure, strengthening local economies and supporting local jobs.

One of the Government’s fiscal principles targets net operating surpluses that ensure General Government Sector PNFA are funded primarily through recurrent revenues rather than borrowing. Forecast net operating cash flows from 2017-18 to 2021-22 of $17.670 billion are funding net investments in NFAs of $31.414 billion. Net cash inflows from operating activities equate to 59.7% of the funding required for the 2018-19 General Government Sector net investments in NFAs, and averages 59.3% across the period 2017-18 to 2021-22.

The State has also entered into a number of finance leases, mainly in relation to Public Private Partnerships, totalling $1.710 billion over the period 2017-18 to 2019-20, including:

• $1.030 billion for New Generation Rollingstock

• $430 million for the Toowoomba Second Range Crossing

• $195 million for the Gold Coast Light Rail - Stage 2.

Generally, at the commencement of finance leases, the non-financial assets and the borrowings of the State increase by an equal amount to reflect the acquisition of the asset from the proponent. There are no cash impacts on the commencement of the lease - the finance lease liabilities are subsequently repaid under the terms of the Public Private Partnership agreement.

Purchases of non-financial assets by the NFPS over the period 2018-19 to 2021-22 are forecast to be $40.543 billion, which is an average of $10.136 billion per annum. With capital grant expenses of $4.074 billion, this brings total capital expenditure to $44.618 billion. In addition to this, acquisitions of non-financial assets under finance leases of $1.151 billion bring the total capital program over the period to $45.769 billion. While its primary aim is to facilitate service delivery to Queenslanders, infrastructure investment makes an important contribution to the economy and is a cornerstone of the Queensland job market, particularly in the construction industry.

87

Budget Strategy and Outlook 2018-19

6.2.3 Liabilities

General Government Sector

Estimated General Government Sector liabilities of $72.757 billion in 2017-18 are $1.458 billion higher than the 2017-18 Budget. The superannuation liability was $1.939 billion higher, mainly from the flow through of actuarial adjustments at 30 June 2017, as well as lower beneficiary payments. Advances received were higher as more GOCs joined the cash management scheme and there was an increase in other liabilities, predominantly the State’s commitment to join the National Redress Scheme for Survivors of Institutional Child Sexual Abuse. Partially offsetting these increases was lower debt than expected at the time of the 2017-18 Budget mainly resulting from improved royalty revenue.

Due to the Government’s commitment to sustainable fiscal management, General Government Sector borrowing is expected to fall $1.893 billion from $33.260 billion in 2016-17 to $31.367 billion in 2017-18.

Total liabilities in the General Government Sector in 2018-19 will reduce by $1.182 billion from the 2017-18 estimated actual, predominantly due to lower superannuation liabilities. Liabilities relating to employee entitlements (principally superannuation and long service leave) are projected to total $29.302 billion at 30 June 2019, a 5.6% decrease on the 2017-18 estimated actual. The State’s defined benefit fund has been closed to new entrants since 2008. Given the age profile of those employees still in that fund, retirements are also increasing. Accordingly, the State’s superannuation liability is now declining over the forward estimates. In addition, an anticipated increase in bond rates across the forward estimates contributes to the expected decline.

General Government Sector borrowings of $32.311 billion are budgeted for 2018-19, $4.082 billion lower than the projection in the 2017-18 Budget and $1.601 billion lower than projected at the time of the 2017-18 MYFER. Borrowings are expected to increase by $10.923 billion between 2017-18 and 2021-22 in support of PNFA’s of $27.961 billion.

The composition of the General Government Sector’s forecast liabilities at 30 June 2019 is illustrated in Chart 6.2.

88

Budget Strategy and Outlook 2018-19

Chart 6.2 Forecast General Government Sector liabilities by category, at 30 June 2019

Borrowing in 2018-19 is budgeted to be 45% of total liabilities, compared with 53% in 2014-15, reflecting the reduction in borrowings over this period.

Non-financial Public Sector borrowings

Non-financial Public Sector borrowings of $69.501 billion are expected for 2017-18, $2.488 billion lower than expected at the 2017-18 Budget, and $1.721 billion lower than 2017-18 MYFER.

Non-financial Public Sector borrowings of $79.750 billion are now expected for 2020-21, $1.093 billion lower than expected at the 2017-18 MYFER and $1.398 billion less than the comparable 2017-18 Budget estimate. This largely reflects the Government’s commitment to fiscally responsible infrastructure investment, without substantially increasing debt.

6.2.4 Net financial worth

The net financial worth measure is an indicator of financial strength. Net financial worth is defined as financial assets less all existing and accruing liabilities. Financial assets include cash and deposits, advances, financial investments, loans, receivables and equity in public enterprises.

The net financial worth measure is broader than the alternative measure – net debt – which measures only cash, advances and investments on the assets side and borrowings and advances on the liabilities side.

The net financial worth of the General Government Sector for 2017-18 is estimated at negative $11.213 billion, an improvement of $1.138 billion on the 2017-18 MYFER.

89

Budget Strategy and Outlook 2018-19

6.2.5 Net financial liabilities

Net financial liabilities are total liabilities less financial assets, other than equity investments in other public sector entities. This measure is broader than net debt as it includes other significant liabilities, in addition to borrowings (for example, accrued employee liabilities such as superannuation and long service leave entitlements).

The net financial liabilities of the General Government Sector for 2017-18 are estimated to be $34.216 billion. Net financial liabilities start increasing from 2018-19 mainly as borrowings increase and investments are repatriated from the actuarially assessed defined benefit superannuation fund and QGIF surplus to assist funding of priority infrastructure projects.

6.2.6 Net worth

The net worth, or equity, of the State is the amount by which the State’s assets exceed its liabilities. This is the value of the investment held on behalf of the people of Queensland by public sector instrumentalities.

Changes in the State’s net worth occur for a number of reasons including:

• operating surpluses (deficits) that increase (decrease) the Government’s equity

• revaluation of assets and liabilities as required by accounting standards. For example, the Government’s accruing liabilities for employee superannuation and long service leave are determined by actuarial assessments

• movements in the net worth of the State’s investments in the Public Non-financial Corporations and Public Financial Corporations sectors

• gains or losses on disposal of assets. Where the selling price of an asset is greater (less) than its value in an agency’s accounts, the resultant profit (loss) affects net worth.

The net worth of the General Government Sector in 2017-18 is estimated to be $199.686 billion. This is $2.236 billion lower than forecast in the 2017-18 Budget primarily due to downward revaluations of road infrastructure assets at 30 June 2017. From 2017-18, net worth is projected to steadily increase, mainly as a result of the growth in purchases of non-financial assets.

6.2.7 Net debt

Net debt is the sum of advances received and borrowings less cash and deposits, advances paid and investments, loans and placements.

Net debt for the General Government Sector in 2017-18 is estimated to be negative $267 million, $1.889 billion less than the 2017-18 Budget mainly as a result of improved royalty receipts. Net debt is forecast to increase across the forward estimates to fund priority infrastructure projects.

In the NFPS, net debt is estimated at $34.854 billion in 2017-18, $3.036 billion less than the 2017-18 Budget. Net debt is expected to increase to $39.027 billion in 2018-19 and then grow through to 2021-22 with infrastructure provision partly funded by borrowings and investment drawdowns.

90

Budget Strategy and Outlook 2018-19

6.2.8 New Accounting Standards

Two new accounting standards will apply to public and private sectors in Australia from 1 July 2019, AASB 16 Leases and AASB 1059 Service Concession Arrangements, that have the potential to significantly impact balance sheets.

Currently, only finance leases are recognised on the balance sheet (and classified as borrowings for GFS purposes). The intention of the new leasing standard is to also bring operating leases onto the balance sheet of lessees. There will therefore no longer be a distinction between finance leases and operating leases for lessees.

Lessees will be required to recognise a right-of-use asset on balance sheet (representing the right to use the underlying leased asset) and a lease liability (representing the obligation to make future lease payments) for all leases except for short-term leases and leases of low-value assets. Social PPPs (such as schools) are already treated as finance leases and included on the State’s balance sheet.

For Service Concession Arrangements, the State, as grantor will recognise an asset and a matching liability which may be classified as a borrowing or unearned revenue (included in other liabilities), depending on the individual contract.

The impact of these new standards will be addressed in the 2019-20 Budget.

6.3 Cash flows

The cash flow statement provides the cash surplus (deficit) measure which is comprised of the net cash flows from operating activities plus the net cash flows from investments in non-financial assets (or physical capital).

The estimated General Government Sector cash deficit of $47 million in 2017-18 is $1.875 billion lower than that forecast at the time of the 2017-18 Budget. This is largely due to the higher than expected operating cash flows.

After taking into account PNFA of $5.927 billion, a cash deficit of $2.248 billion is forecast for 2018-19, an improvement of $937 million compared to the 2017-18 MYFER.

Net cash flows from investments in financial assets for policy purposes include net cash flows from disposal or return of equity, net equity injections into government-owned corporations and concessional loans and advances. Cash flows from the return of equity from the PNFC and PFC sectors are the primary driver of net inflows of $1.127 billion over the period 2017-18 to 2021-22.

Net cash flows from investments in financial assets for liquidity purposes represent net investment in financial assets to cover liabilities such as superannuation, other employee entitlements and insurance. The repatriation of surpluses in the actuarially assessed defined benefit superannuation fund and the QGIF flow through this line in the Statement of Cash Flows.

Total General Government Sector PNFA of $5.927 billion are budgeted for 2018-19 and, over the period 2018-19 to 2021-22, PNFA are expected to total $27.961 billion in the General Government Sector.

91

Budget Strategy and Outlook 2018-19

7 Intergovernmental financial relations

Features

• Queensland’s ability to meet its service delivery and infrastructure responsibilities is dependent on payments from the Australian Government with over 45% of Queensland General Government revenue coming from the Australian Government.

• Estimated Australian Government funding in 2018-19 for Queensland is $26.776 billion; $14.794 billion in GST revenue and $11.982 billion in payments for specific purposes (National Specific Purpose Payments and National Partnership payments).

• Queensland’s GST revenue in 2018-19 is $415.2 million lower than that received in 2017-18. Queensland has a reduced GST share because of factors such as strong mining royalties and population growth below the national average in the three years to 2016-17. The Australian Government’s direction to the Commonwealth Grants Commission to exclude selected payments from GST distribution calculations has also negatively impacted Queensland’s share of GST.

• In 2018-19, $11.982 billion is provided for payments for specific purposes comprising:

• $4.557 billion for National Health Reform

• $4.408 billion for Quality Schools

• $2.034 billion for National Partnership payments, including $1.487 billion for the Infrastructure Investment Program, $158 million for Natural Disaster Relief and Recovery Arrangements (NDRRA) and $88 million for Universal Access to Early Childhood Education

• $669.5 million for National Specific Purpose Payments, including $366 million for disability services, and $303.5 million for skills and workforce development

• $313.6 million for National Housing and Homelessness.

• Queensland is currently negotiating a number of agreements with the Australian Government. Three key agreements are the National Health Reform Agreement, Quality Schools Agreement and the National Housing and Homelessness Agreement.

• Despite repeated requests from states and territories, the Australian Government has not provided greater certainty on the longevity of some funding, preferring instead to provide short-term extensions, or none at all in the case of remote housing, rather than make long-term commitments. The Australian Government also continues to impose stringent conditions in new agreements. This is inconsistent with the principles of the Intergovernmental Agreement on Federal Financial Relations.

• Similarly, Queensland is particularly challenged by a lack of sufficient funding from the Australian Government towards nationally significant infrastructure projects in Queensland, most notably Cross River Rail.

92

Budget Strategy and Outlook 2018-19

7.1 Federal financial arrangements

Federal financial relations in Australia are characterised by different levels of government sharing responsibility for raising revenue and delivering services to communities. State and territory governments’ ability to raise revenue is less than required to meet their service delivery responsibilities. Alongside this, the Australian Government raises more revenue than is required to meet its service delivery responsibilities. This is called vertical fiscal imbalance (VFI), and requires the sharing of revenue between the Commonwealth and states and territories.

In 2016-17, the Australian Government collected the majority of taxation revenues (79.6%), while states and territories (states)¹ collected 16.8% and local governments the remaining 3.6%². National tax reform and other changes since 2000 have led to the Commonwealth having greater capacity to raise revenue compared to states and therefore an increase in VFI. Chart 7.1 shows that states received 35% of their revenue from the Australian Government in 1999-2000, with this forecast to significantly increase to 46.3% in 2018-19³.

Chart 7.1 General Government revenue sources, all states, 1999-2000 and 2018-19¹

Note:

1. 2018-19 are estimates.

Sources: ABS Government Finance Statistics Cat No. 5512.0 and state and Australian Government Budget Papers.

¹  States refer to states and territories unless otherwise specified.

²  ABS Government Finance Statistics Cat No. 5506.0

³  National aggregates and interstate comparisons in this chapter will use Australian Government estimates for consistency. Queensland specific figures are consistent with Queensland Budget estimates.

93

Budget Strategy and Outlook 2018-19

In Australia, VFI is addressed through a system of intergovernmental payments from the Australian Government to the states which allows the states to meet their service delivery and infrastructure responsibilities. The Australian Government provides two types of payments:

• general revenue assistance payments such as the GST which are able to be used by states for any purpose (untied funding)

• payments for specific purposes (tied funding) such as National Specific Purpose Payments (SPPs) and National Partnership payments (NPs) which support specific projects or service areas.

Without a contribution by the Australian Government, states would not be able to provide essential services and infrastructure.

Another feature of Australian federalism is horizontal fiscal imbalance (HFI). HFI arises from disparities between the states’ capacity to raise revenue and deliver services. Some states can raise higher revenue or deliver services at a lower cost compared to other states. Over time, this can distort capital and labour mobility towards states providing higher level of services.

To address this, GST revenue collected by the Australian Government is distributed to states in a way that ensures each is provided with the fiscal capacity to deliver the same standard of services and infrastructure to their population no matter where they live. This is known as horizontal fiscal equalisation (HFE).

The Commonwealth Grants Commission (CGC) uses the principle of HFE in recommending to the Australian Government how GST revenue should be distributed. The amount each state receives is a function of the amount of GST revenue collected (the GST pool) and the share of revenue recommended by the CGC.

In April 2017, the Australian Government directed the Productivity Commission to review the current HFE system to determine its impact and whether preferable alternatives exist. Further details are provided in Box 7.1.

94

Budget Strategy and Outlook 2018-19

Box 7.1 Productivity Commission Inquiry into HFE

The Productivity Commission’s (PC) inquiry into Australia’s system of HFE commenced on 30 April 2017. This inquiry examines the current system of distributing GST revenue to the states and its impact on productivity, efficiency, economic growth and the incentives for states to undertake fiscal reforms.

The PC released a draft report on 9 October 2017. It found that the current system achieves a high degree of equalisation but has the potential to discourage states from pursuing efficiency-enhancing reform. In response, the PC canvassed several alternative systems for distributing GST revenue. A key element of these alternative systems is that states are not equalised to deliver the same standard of services and infrastructure to their population. In each alternative system, Queensland would receive significantly less GST revenue. Under one system, the PC estimates that Queensland would have received $1.588 billion less GST in 2017-18 compared to the current system. This is equivalent to losing 5,000 teachers, 5,000 nurses, 3,000 police officers and 1,135 firefighters.

In its submission to the PC in December 2017, and at the public inquiry in Brisbane on 5 February 2018, the Queensland Government strongly advocated for the principle of HFE. It also stressed the importance of a system that recognises the different circumstances of each state so that additional funding can be directed to states with unavoidably higher service delivery costs.

The PC final report was provided to the Australian Government on 15 May 2018. At the time of finalising the 2018-19 Budget papers, states have not been provided with the report or the PC final recommendations.

7.2 Australian Government funding to the states

As discussed in section 7.1, total Australian Government payments to the states are made up of general revenue assistance payments and payments for specific purposes.

Total Australian Government payments for the states in 2018-19 are expected to be $126.751 billion, an increase of $4.312 billion, or 3.5%, from 2017-18.

Within this total, payments to states for specific purposes in 2018-19 are expected to be $58.554 billion, a 1.0% increase from 2017-18. These consist of:

• $21.189 billion in National Health Reform funding

• $19.518 billion in Quality Schools funding

• $13.840 billion in National Partnership payments

• $2.471 billion in National Specific Purpose Payments

• $1.536 billion in National Housing and Homelessness funding.

95

Budget Strategy and Outlook 2018-19

7.3 Australian Government funding to Queensland

Estimated Australian Government funding in 2018-19 for Queensland, included in the 2018-19 Queensland Budget, is $26.776 billion⁴, a decrease of $523.2 million, or 1.9%, compared with 2017-18.

Australian Government funding is estimated to account for 46.4% of Queensland’s total General Government Sector revenue sources in 2018-19 (shown in Chart 7.2). Australian Government funding has grown significantly as a proportion of Queensland’s total revenue since the introduction of the GST in 2000, consistent with the broader national trend.

Chart 7.2 General Government Sector revenue sources, Queensland, 2018-19¹

Note:

1. Percentage may not add to 100% due to rounding.

Source: 2018-19 Commonwealth Budget Paper No. 3 and Queensland Treasury estimates.

⁴  This figure differs to Chapter 4 Australian Government payments estimates, owing to the exclusion of direct Australian Government payments to Queensland departments for Commonwealth own purpose expenditure.

96

Budget Strategy and Outlook 2018-19

7.4 GST revenue payment

GST revenue accounts for all general revenue assistance payments Queensland receives. In 2018-19, Queensland expects to receive $14.794 billion of GST revenue, $415.2 million or 2.7% less than the amount received in 2017-18 (see Chart 7.3).

Chart 7.3 Estimated GST payments to Queensland, 2013-14 to 2018-19¹

Note

1. Figures include the balancing adjustments which account for differences between the GST paid to states and the final GST pool size and population outcomes in the prior year.

Sources: 2018-19 Commonwealth Budget Paper No. 3 and Queensland Treasury estimates.

The decrease in GST revenue in 2018-19 reflects the CGC’s recommendation that Queensland receive a lesser share of GST compared to 2017-18. This is expressed as a relativity; the measure of a state’s fiscal capacity compared to other states, after considerations are made for its ability to raise revenue and provide services. A state with a lower relativity is considered to have a higher fiscal capacity and requires a lower share of the GST. In 2018-19, the Australian Government accepted the CGC’s recommended relativity for Queensland of 1.09584, down from 1.18769 in 2017-18.

97

Budget Strategy and Outlook 2018-19

The CGC has recommended a decrease to Queensland’s share of GST for 2018-19 due to the following:

• Queensland’s population growth over the assessment years from 2014-15 to 2016-17 was lower than the national average, leading to a reduction in Queensland’s assessed need for infrastructure investment relative to the rest of Australia

• Queensland required less GST funding to cover natural disaster expenses compared to years following the major flood and cyclone events between 2011 and 2014

• strong commodity prices increased Queensland’s mining revenue which in turn improved the state’s ability to meet its own expenditures

• Queensland received more than its population share of Commonwealth payments which increased its capacity to provide services.

Queensland’s GST revenue is also adversely affected by the Australian Government excluding some payments from the GST distribution calculations. These have favoured other states in recent years, for example, funding for the Perth Freight Link paid to Western Australia and payments made to states under the Asset Recycling Initiative. The adverse effect of such payments on Queensland’s GST share last several years before they are no longer relevant to the calculation of the State’s GST share.

The CGC Report on GST Revenue Sharing Relativities (2018 Update) provides detail on the factors that determine Queensland’s GST share. It also provides information on Queensland’s share of GST compared to other states and the reasons underpinning these differences. Table 7.1 shows the relativities and resulting GST distributions for each state and territory for 2018-19.

Table 7.1 Recommended relativities and estimated GST shares, 2018-19

	NSW		Vic.		Qld		WA		SA		Tas.		ACT		NT
CGC recommended relativity		0.85517		0.98670		1.09584		0.47287		1.47727		1.76706		1.18070		4.25816
GST Share ($ million)		18,442		17,261		14,794		3,315		6,887		2,488		1,328		2,805
GST per capita ($)		2,290		2,642		2,934		1,266		3,956		4,733		3,161		11,405

Sources: 2018-19 Commonwealth Budget Paper No. 3, Commonwealth Grants Commission Report on GST Revenue Sharing Relativities – 2018 Update.

Currently the CGC is reviewing its method for determining the distribution of GST among the states. Through the 2020 Methodology Review, Queensland aims to ensure the assessment accurately reflects the challenges of delivering services to a large and decentralised state and that the State receives its fair share of GST revenue

The final report for the 2020 Methodology Review will be provided to the Commonwealth and states by 28 February 2020.

98

Budget Strategy and Outlook 2018-19

7.5 Payments to Queensland for specific purposes

Payments for specific purposes comprise funding for:

• National Health Reform

• Quality Schools

• National Housing and Homelessness

• National Specific Purpose Payments (SPPs)

• National Partnership (NP) payments.

Queensland is expected to receive $11.982 billion in payments for specific purposes in 2018-19. This is $107.2 million lower than 2017-18 and is mainly due to the cessation of the National Partnership on Remote Housing in 2017-18.

Table 7.2 Estimated Payments to Queensland for Specific Purposes¹

	2016-17 Actual $ million		2017-18 Est. Act. $ million		2018-19 Budget $ million
National Specific Purpose Payments		907		925		670
Skills and workforce development		296		299		304
Disability services		341		353		366
Affordable housing2		269		273		—
National Health Reform funding		3,851		4,595		4,557
Quality Schools funding		3,874		4,157		4,408
National Housing and Homelessness funding2		—		—		314
National Partnership Payments (incl. NDRRA)		3,228		2,412		2,034
Total payments for specific purposes		11,860		12,089		11,982

Notes:

1. Numbers may not add due to rounding.

2. From 2018-19, funding under the National Affordable Housing SPP and the National Partnership Agreement on Homelessness is combined under the National Housing and Homelessness Agreement.

Sources: 2018-19 Commonwealth Budget Paper No. 3 and Queensland Treasury estimates.

In 2018-19, National Health Reform funding accounts for 38% and Quality Schools funding accounts for 36.8% of the total payments for specific purposes respectively. The estimated decrease in National Health Reform funding from 2017-18 to 2018-19 is due to funding for services provided in previous years being recognised in 2017-18. Queensland projections of National Health Reform Funding differ from the projections contained in the 2018-19 Commonwealth Budget. For 2018-19, Commonwealth projections assume higher activity growth than is projected in service agreements between the Queensland Department of Health and Hospital and Health Services. Actual National Health Reform payments may vary from estimates based on actual public hospital activity delivered each year.

99

Budget Strategy and Outlook 2018-19

From 1 July 2018, the new National Housing and Homelessness Agreement (NHHA) will commence. The NHHA combines funding under the National Affordable Housing SPP and continues the homelessness funding under the National Partnership Agreement on Homelessness, which expires on 30 June 2018.

National SPPs, which encompass 5.6% of the total payments for specific purposes, are expected to decrease by 27.6% to $669.5 million in 2018-19 (as shown in Table 7.2). The reduction is due to funding for the National Affordable Housing SPP being merged with homelessness funding, and reported as part of the new NHHA from 2018-19.

NP payments (including NDRRA), which account for 17% of the total payments for specific purposes, are expected to decrease by 15.7% to $2.034 billion in 2018-19 compared to the previous year. This is mainly due to the cessation of the National Partnership on Remote Housing. A significant proportion of these payments is allocated for infrastructure, community services, NDRRA and education (refer to Chart 7.4).

Chart 7.4 National Partnership Payments by sector, 2018-19¹

Note:

1. Excludes Australian Government direct funding to local government.

Sources: 2018-19 Commonwealth Budget Paper No. 3 and Queensland Treasury estimates.

100

Budget Strategy and Outlook 2018-19

In the 2018-19 Commonwealth Budget, the Australian Government announced funding of $5.2 billion for major infrastructure projects in Queensland, with most of the funding allocated outside the forward estimates. This includes:

• a further $3.3 billion for priority upgrades along the Bruce Highway, including Pine Rivers to Caloundra ($880 million) and Cooroy to Curra Section D ($800 million)

• a contribution of $1 billion to M1 Pacific Motorway projects (Eight Mile Plains to Daisy Hill and Varsity Lakes to Tugun)

• $390 million for the Beerburrum to Nambour rail upgrade.

The Commonwealth Budget also provides funding for a number of national infrastructure initiatives that have implications for Queensland. This includes:

• $15 million allocation for the Toowoomba to Brisbane Passenger Rail Business Case under the $250 million Major Projects Business Case Fund

• $1.5 billion Northern Australia strategic roads package to be shared across Queensland, the Northern Territory and Western Australia

• $160 million to upgrade sections of the Outback Way, which links Laverton in Western Australia to Winton in Queensland. Funding will be shared across Queensland, the Northern Territory and Western Australia.

The Australian Government has failed to fund critical infrastructure such as Cross River Rail. Furthermore, it has applied inconsistent funding splits between the Commonwealth contribution compared to Queensland’s contribution (e.g. 80:20 or 50:50) for similar projects, and regularly budgets its contribution well after projects commence and beyond the forward estimates. For example, for the two M1 Pacific Motorway projects, the Australian Government has only committed to 15.5% of its project contribution within the forward estimates.

101

Budget Strategy and Outlook 2018-19

Box 7.2 Projections of specific purpose funding to Queensland

Across the forward estimates, total payments for specific purposes are expected to steadily increase, with average growth of around 4% between 2019-20 and 2021-22.

National Health Reform funding for Queensland is expected to increase by an average of 5.5% per annum from 2019-20. Under the Addendum to the National Health Reform Agreement, the Australian Government will fund 45% of efficient growth in hospital activity subject to a national growth cap of 6.5% per annum. Current estimates are based on this methodology however, funding is subject to Queensland agreeing to the Addendum to the National Health Reform Agreement, including an agreed mechanism for finalising future National Health Reform funding determinations in a timely manner.

Growth in Quality Schools funding for Queensland is expecting to average 6.7% per annum between 2018-19 and 2021-22 as a result of enrolment growth and increased per student funding. In June 2017, legislation was passed by the Australian Government to introduce a new needs-based funding model for schools. Under the new funding model, Queensland is expecting to receive $7.856 billion for state schools and $11.687 billion (including GST) for non-government schools over the forward estimates. Funding for the 2019 to 2023 calendar years is contingent on states agreeing to national and bilateral agreements with the Australian Government by the end of 2018.

Queensland is currently negotiating the bilateral agreement for the new National Housing and Homelessness Agreement (NHHA). Funding is due to commence in 2018-19, and combines funding for the National Affordable Housing SPP with homelessness funding. NHHA funding is expected to be relatively stable across the forward estimates.

Funding for National SPPs is expected to decrease from 2019-20 as the NDIS is fully implemented from the same year, which will redirect the National Disability SPP funding to the NDIS. Funding for the National Skills and Workforce Development SPP is expected to be relatively stable across the forward estimates.

102

Budget Strategy and Outlook 2018-19

7.5.1 Expiring agreements

The original intent of the Intergovernmental Agreement on Federal Financial Relations was to limit the number of NPs, allowing for funding to flow to states for efficient service delivery and reduce the reporting burden. Over time, the number of time-limited and low-value NPs has increased, reducing budget certainty and raising community expectations for ongoing services.

When agreements expire, states are left with limited opportunities to deal with the expiring NP as the final decision on continued funding is made through the Australian Government’s budget process. The expiry of a number of large NPs over the last few years has brought the risks posed by fixed-term funding arrangements into sharp focus. States have had limited capacity to influence the continuation of expiring agreements and often there is little warning on whether funding will be continued. An early indication as to the continuation, lapse or other treatment of funding under expiring agreements is necessary to enable states to undertake effective service delivery and budgetary planning.

There are 14 agreements due to expire in 2017-18 or 2018-19. Funding will expire in 2017-18 for eight agreements, worth approximately $212 million in 2017-18. There are six agreements where funding expires in 2018-19, worth approximately $126 million in 2017-18.

The 2018-19 Commonwealth Budget provided no advice on renewal and/or funding for the National Partnership on Remote Housing following its expiry in 2017-18. Funding under this agreement improves housing outcomes by providing for new housing, housing refurbishments and housing-related infrastructure in Indigenous communities.

Further, short-term funding was announced for the National Partnership on Universal Access to Early Childhood Education until December 2019. This will be the sixth short-term extension for this agreement. Alongside this, no further funding to states was announced for the National Partnership on the National Quality Agenda for Early Childhood Education and Care following its expiry on 31 December 2018. The Commonwealth has committed to fund the Australian Children’s Education and Care Quality Authority (ACECQA) until 30 June 2020 to administer the National Quality Framework for Early Childhood Education and Care.

When the Australian Government decides to cease funding for expiring agreements, this presents a significant ongoing fiscal risk for states, with impacts on the quality and continuity of much needed services delivered to some of the most vulnerable members of the community.

103

Budget Strategy and Outlook 2018-19

7.6 State-local government financial relations

In 2018-19, the Queensland Government will provide a total of $1.667 billion in grants to local governments. This includes financial assistance grants paid by the Australian Government through the State to local governments.

The Government is providing funding of $3.2 million over four years to undertake implementation planning to improve and simplify the administration of grants to local government.

The Government is providing funding of $1.3 million in 2018-19 to develop a new grants management system. This is to progress recommendations from the Review of Grants to Local Government: Current and Future State Assessments and is an important initiative to make the interaction of Queensland Government and local governments more efficient and more effective in serving the people of Queensland.

Table 7.3 Grants to local governments in Queensland^1,2

	2017-18 Est. Act. $ million		2018-19 Budget $ million
Aboriginal and Torres Strait Islander Partnerships		3		7
Environment and Science		38		61
Child Safety, Youth and Women		1		2
Communities, Disability Services and Seniors		63		60
Education		2		2
Natural Resources, Mines and Energy		33		—
Housing and Public Works		56		81
Innovation, Tourism Industry Development and the Commonwealth Games		31		2
Local Government, Racing and Multicultural Affairs3		865		559
Premier and Cabinet		13		1
Queensland Ambulance Service		1		—
Queensland Fire and Emergency Services		2		2
State Development, Manufacturing, Infrastructure and Planning		382		544
Queensland Treasury		1		2
Transport and Main Roads		204		213
Other4		26		132
Total Queensland Government grants		1,721		1,667

Notes:

1. Includes current, capital and asset grants to local government authorities and Aboriginal and Torres Strait Islander councils. Includes Australian Government grants paid through the state to local governments.

2. Numbers may not add due to rounding.

3. Decline in 2018-19 reflects prepayment of Financial Assistance Grants by the Australian Government in 2017-18.

4. Includes grants yet unallocated to government agencies and ceased entities following Machinery of Government changes.

104

Budget Strategy and Outlook 2018-19

Box 7.3 Grants to local governments

The Queensland Government allocates considerable funding in the State Budget to support local governments across the State. The Queensland Government acknowledges the shared responsibilities in serving the people of Queensland and the important role local governments play. A summary of grant programs available to local governments are listed below.

Grant programs exclusively available to local government

Program Name	Description	Total Funding (2015-16 onwards)	Funding Allocated	Funding Not Yet Allocated
Works for Queensland	Support local governments in regional areas to undertake job-creating maintenance and minor infrastructure works.	$600 million	$400 million	$200 million
Transport Infrastructure Development Scheme	Provide targeted investment in regional local government transport infrastructure.	$460 million	Committed through the Roads and Transport Alliance as annual allocations to 17 formalised groups of councils (Regional Roads and Transport Groups) to prioritise as rolling four-year programs of work.
Building our Regions	Provide funding for critical infrastructure in regional areas to support economic development, including generating jobs.	$295 million	$225 million	$70 million
Local Government Grants and Subsidies Program	Provide funding for priority infrastructure projects that will enhance sustainable and liveable communities.	$29 million per annum	Ongoing funding
Coastal Hazard Adaptation Program - QCoast2100	Assist coastal local governments to prepare plans and strategies for addressing climate change.	$12 million	$4.3 million	$7.8 million
Queensland Water Regional Alliances Program	Assist regional councils to collaborate and improve efficiencies and administration around water infrastructure.	$6 million	$1.8 million	$4.2 million

105

Budget Strategy and Outlook 2018-19

In addition to the above grant programs, the Government will be providing additional funding of $38 million over four years from 2018-19 to establish the Disaster Resilience Fund. This fund will be administered by the Queensland Reconstruction Authority (QRA) and will be available to a range of organisations including local governments, to deliver mitigation and resilience projects. The QRA intends to seek matched funding from the Australian Government.

Funding is also made available to local governments under the Natural Disaster Relief and Recovery Arrangements which are a joint funding initiative of the State and Australian Governments to provide disaster relief and recovery payments to help communities recover following the effects of natural disasters.

The Government also understands there are added challenges faced by Indigenous local governments, which are often located in very remote areas of the State, to ensure their communities have access to essential services and critical infrastructure. In response, the Government has allocated substantial additional funding to specifically support Indigenous councils and their communities. A summary of grant programs available to Indigenous councils and their communities are listed below.

Grant programs to support Indigenous councils and their communities

Program Name	Description	Total Funding (2015-16 onwards)	Funding Allocated	Funding Not Yet Allocated
Indigenous Councils Critical Infrastructure Program	Contribute water, wastewater and solid waste infrastructure in Indigenous communities.	$120 million	$33.2 million	$86.8 million
Major Infrastructure Program	Deliver environmental health and other infrastructure upgrades within the Torres Strait Island Regional Council, Torres Shire Council and Northern Peninsula Area Regional Council areas.	$15 million	$7.5 million	$7.5 million
State Government Financial Aid	A financial contribution (in lieu of rates) to meet the costs incurred by Indigenous councils in the provision of local government services.	$33.7 million per annum	Ongoing funding indexed by CPI
Indigenous Local Government Sustainability Program (2016-18)	Assist Indigenous councils to increase their capacity, capability and sustainability.	$8.2 million	$7.6 million	$550,000

106

Budget Strategy and Outlook 2018-19

8 Public Non-Financial Corporations Sector

Features

• The Queensland Government businesses operate commercially and efficiently and improve services to Queenslanders.

• The Government is supporting over $3.130 billion of additional infrastructure investment through the Public Non-Financial Corporations Sector in 2018-19. This includes $2.128 billion on electricity infrastructure, $204.7 million on water infrastructure, $181.2 million on port infrastructure and $587.5 million on rail infrastructure.

• The Public Non-Financial Corporations Sector is forecast to generate dividends of $1.435 billion in 2018-19. Importantly, dividends generated by the government-owned corporations will be used to fund an Asset Ownership Dividend which provides $50 a year for every household electricity bill over 2017-18 and 2018-19. This initiative forms part of the $2 billion Affordable Energy Plan, providing cost of living relief to Queenslanders.

• The Government continues to progress core energy policy proposals including the establishment of a clean energy government-owned corporation, progressing the business case for the Burdekin Falls Hydro Power Station and the Renewables 400 auction. Alongside diversifying the State’s energy generation mix to more renewable sources, these projects will help to drive greater competition, putting downward pressure on energy prices in Queensland.

• Energy Queensland Limited is preparing for the new regulatory control period 2020-25, through which the Australian Energy Regulator will determine allowable revenues for the Ergon Energy and Energex network businesses.

• In 2018-19, Queensland Rail is implementing a number of rail projects to improve the capacity and efficiency of the network, including the New Generation Rollingstock project, North Coast Line Capacity Improvement Project and European Train Control System – Inner City.

• The government-owned port corporations will continue to progress key projects in 2018-19 across the State. This includes progressing approvals for the Cairns Shipping Development Project, progressing the detailed business case and seeking approvals to commence works on the Clinton Vessel Interaction Project, progressing the Gladstone Port Master Plan and progressing works for the Channel Capacity Upgrade project at the Port of Townsville.

• The Rookwood Weir project presents an opportunity to supplement urban water supplies and enhance agricultural and industrial development in the Fitzroy Basin and Gladstone region. The Queensland Government and the Australian Government have both committed matching funding of $176 million ($352 million in total) to ensure the capital costs of the project are fully funded.

107

Budget Strategy and Outlook 2018-19

8.1 Context

A number of industries are covered by the Public Non-Financial Corporations (PNFC) Sector, including energy, rail, ports and water. Queensland’s government-owned corporations (GOCs), declared by regulation to be GOCs under the Government Owned Corporations Act 1993 (GOC Act), make up a large part of the PNFC Sector. Also included in the sector are non-GOC entities, the Queensland Bulk Water Supply Authority (trading as Seqwater), Queensland Rail, local water boards and other public corporations.

GOCs are accountable for their financial performance and are required to be commercial and efficient organisations. These requirements are legislated under the GOC Act.

PNFC Sector entities provide services or commodities like other businesses. The entities incur costs and bear commercial risks in the delivery of their services or products and generate revenue from the sale of these services or products. The aim of these entities is to deliver vital services while achieving a commercial rate of return for the Government.

The returns to Government are used to pay for important community services such as hospitals, education and concession payments. In some cases, part of a PNFC entity’s revenue may arise from community service obligation (CSO) payments from the Government. These payments are used to subsidise a service or commodity provided by the entity, and allow it to be provided to the community at a lower price than it would be on a purely commercial basis. A key example of this is the CSO paid to Energy Queensland Limited to provide electricity in regional Queensland at prices based on the costs of supply in South East Queensland (SEQ), in accordance with the Government’s Uniform Tariff Policy. This ensures that electricity prices in regional Queensland are much lower than would otherwise be the case.

108

Budget Strategy and Outlook 2018-19

8.1.1 Electricity Networks

The Government owns two electricity network businesses that are responsible for transporting safe and reliable electricity to consumers across the State – Powerlink and Energy Queensland Limited (EQL).

Powerlink

Powerlink is a high-voltage transmission network business that transports electricity long distances from generation plants to the distribution networks and connects Queensland to other states. The electricity is transmitted at high voltages so that large volumes can travel efficiently over long distances.

To ensure mandated reliability levels are maintained as demand grows, Powerlink is obligated to plan and develop the network. Powerlink’s external environment has changed significantly in recent years with changes in consumer demand, market and regulatory changes, increasing complexity within the electricity market and the emergence of renewable energies and other technologies.

Energy Queensland Limited

On 30 June 2016, Energex and Ergon Energy were merged under the parent company, EQL. EQL owns and operates the low-voltage distribution network that transports electricity from Powerlink’s transmission network and distributes it to households and businesses across Queensland. Ergon Energy Network provides the distribution network in regional Queensland and Ergon Energy Retail offers its customers retail services in regional Queensland. Energex provides distribution network services to customers within SEQ.

EQL, through its subsidiary Yurika, is also involved in a range of other service delivery functions including demand management services, large-scale connections, microgrid solutions, the provision of contestable metering services and telecommunications infrastructure. Yurika is focussed on pursuing strategic investments in unregulated markets to provide greater choice to customers and provide EQL an enhanced ability to respond to emerging trends.

When the Government announced the merger of Energex and Ergon Energy under EQL, it was estimated that through the merger and other efficiencies, savings of $562 million were to be generated over five years. These savings will deliver benefits to both Government and electricity consumers, through improved returns from the business, and by putting downward pressure on electricity prices. EQL is on track to reach the savings target by 2019-20.

Network Revenues

Revenues for the network businesses are largely derived from network services that are regulated by the Australian Energy Regulator (AER). The AER determines these revenues on a five-yearly basis, based on the businesses’ proposals and its view of the reasonable benchmark efficient costs for a network business.

109

Budget Strategy and Outlook 2018-19

The AER published Powerlink’s revenue determination in April 2017 for the 2017-22 regulatory control period, which resulted in a significant reduction in allowable revenues for the business. On 31 October 2017, the Energex and Ergon Energy network businesses formally submitted to the AER a request to develop a replacement framework and approach to apply for the next regulatory control period 2020-25. EQL will continue to consult and develop its regulatory proposals over 2018 and 2019 for submission to the AER.

8.1.2 Electricity Generation

The National Electricity Market (NEM) continues to experience significant change. The Government has and will continue to act to ensure wholesale prices in Queensland remain affordable for customers.

The Powering Queensland Plan includes a number of measures to put downward pressure on wholesale prices, including returning Swanbank E to service, directing Stanwell to alter its bidding strategies, and investigating the establishment of a clean energy generator to boost competition.

Queensland has already seen the benefits of these initiatives, with forward wholesale prices in Queensland remaining the lowest in the NEM and Queensland having the lowest wholesale market spot prices over the recent summer despite record peak demand being exceeded.

CS Energy

CS Energy is a merchant electricity generator that sells electricity in the NEM under the Electricity Act 1994. CS Energy has more than 400 employees, operates three power stations and has a trading portfolio of 4,035MW. CS Energy dispatches over 30 per cent of Queensland’s electricity and slightly over 10 per cent of all electricity supplied to the NEM.

CS Energy’s diverse asset portfolio comprises coal-fired and hydroelectric power stations, electricity trading rights and coal assets. CS Energy owns and operates the Callide B, Kogan Creek and Wivenhoe power stations, and has a 50 per cent interest in the Callide C Power Station, where it provides operations and maintenance services. CS Energy is also a party to the Gladstone Interconnection and Power Pooling Agreement, which entitles it to trade the output of the Gladstone Power Station that exceeds the requirements of the Boyne Island aluminium smelter.

CS Energy’s joint venture with Alinta Energy continues to provide SEQ customers with discounted usage charges. As at early June 2018, almost 180,000 customers have signed up with Alinta Energy. The joint venture has successfully boosted competition in SEQ with many other retailers responding with lower electricity prices.

Stanwell

Stanwell is one of Australia’s largest energy providers, with a diversified portfolio of coal, gas and hydro assets totalling 4,000MW of installed capacity. It employs over 800 staff across Queensland. Stanwell dispatches over 30 per cent of Queensland’s electricity and slightly over 10 per cent of all electricity supplied to the NEM.

110

Budget Strategy and Outlook 2018-19

Box 8.1 Clean Energy Leader

Queensland is in a strong position to deliver reliable, affordable energy with the right mix of baseload and renewable generation capacity. The Government is committed to reaching the 50 per cent Queensland Renewable Energy Target (QRET) by 2030 and providing a two-year cap on electricity price rises to average inflation.

Under its Powering Queensland Plan (PQP), the Government continues to ensure affordable, secure and sustainable energy supply for Queensland homes, businesses and industry. This includes continuing to remove the costs of the Solar Bonus Scheme from customer bills over 2018-19 and 2019-20.

As part of the PQP, the Government committed to investigate the creation of a clean energy generation government-owned corporation (CleanCo). CleanCo will assist in meeting the QRET by 2030, increase competition and help to put downward pressure on wholesale electricity prices, delivering benefits to customers. During 2017-18, the Government established a taskforce to investigate the establishment of CleanCo and will continue to investigate and engage with stakeholders across 2018-19 to deliver on its commitment.

As part of the 2017-18 State Budget, the Government announced the reinvestment of $100 million towards the Burdekin Falls Hydro Power Station and $150 million towards the North Queensland Clean Energy Hub, subject to feasibility investigations. Work continues to progress on these projects to ensure the best possible outcome for Queenslanders.

During 2017-18, the Queensland Government announced the $2 billion Affordable Energy Plan. The Affordable Energy Plan includes a $50 annual Asset Ownership Dividend to provide bill relief for households over 2017-18 and 2018-19. The initiative has been made possible due to Queensland’s ownership of its electricity assets, enabling the Government to reinvest GOC dividends in a concerted effort to improve affordability. The Affordable Energy Plan also provides benefits to large customers. Initiatives such as the Large Customer Assistance Program and the Energy Savers Plus Program Extension look to assist large customers with increasing energy efficiency and electricity savings.

Queensland has experienced significant growth in the renewable energy sector over the previous two years. Queensland has many large-scale renewable projects under construction, forming part of the $4.2 billion worth of committed projects set to deliver approximately 2,200MW of generation capacity by the end of 2019. These works will generate over 3,500 construction jobs, and put Queensland on track to achieve its 50 per cent renewable energy target by 2030.

The Government is also running the Renewables 400 reverse auction to facilitate the next wave of up to 400MW of diversified renewable energy, including up to 100MW of energy storage.

The Queensland Government will spend $97 million over three years to install solar and energy efficiency measures in approximately 800 state schools. The Advancing Clean Energy Schools (ACES) program will help Queensland schools cut their combined power bill by up to 20 per cent and save an estimated $10.2 million per year. The ACES program will also boost Queensland’s progress towards the 50 per cent renewables target by 2030.

111

Budget Strategy and Outlook 2018-19

8.1.3 Rail

Queensland Rail is an integrated, publicly-owned rail operator, responsible for the delivery of passenger transport in SEQ, long distance passenger services in rural and regional Queensland and provision of third party access to networks for freight transport across the state.

The majority of Queensland Rail’s services are delivered under a Rail Transport Services Contract (TSC) between the Government, represented by the Department of Transport and Main Roads, and Queensland Rail. The Rail TSC provides funding for rail infrastructure, Citytrain (SEQ passenger services) and Traveltrain (regional passenger services).

In 2018-19, Queensland Rail is implementing a number of rail projects which will improve the capacity and efficiency of the network, including the New Generation Rollingstock project, North Coast Line Capacity Improvement project and European Train Control System (ETCS) – Inner City.

The New Generation Rollingstock project will see a significant increase to the SEQ train fleet to meet growing demand for rail services. ETCS – Inner City is a rail signalling and train protection system which will boost the capacity and safety of the inner-city rail network.

8.1.4 Ports

Queensland has a large network of ports along its coastline, ranging from small installations serving local communities to large, world class multi-user and multi-cargo ports, which have public and privately-owned import and export facilities. Apart from the Port of Brisbane, the port authorities responsible for all of Queensland’s ports are owned and run by GOCs. Queensland’s ports are a major component of the State’s supply chain networks and economy, and their efficient and profitable operation is essential for continued economic growth, job creation, and sustainable development in the State.

The port sector’s financial performance is influenced by the condition of the Queensland economy, particularly in terms of demand abroad for Queensland’s natural resources and agricultural products. Queensland ports continue to look to further enhance supply chain efficiency and identify new markets to improve financial outcomes and stimulate the economy.

Key projects that will be progressed in 2018-19 include:

• progressing approvals for the Cairns Shipping Development Project

• progressing the detailed business case and seeking approvals to commence works on the Clinton Vessel Interaction Project

• progressing the final Gladstone Port Master Plan and overlay documentation

• progressing works for the Channel Capacity Upgrade project at the Port of Townsville.

112

Budget Strategy and Outlook 2018-19

8.1.5 Water

The two largest entities in the Queensland bulk water market are the Queensland Bulk Water Supply Authority (trading as Seqwater) and SunWater Limited (SunWater).

Seqwater

Seqwater is responsible for supplying safe, secure and reliable bulk drinking water for people across SEQ. Its assets and operations spread across a large geographic area from the New South Wales border, to the base of the Toowoomba ranges and as far north as Gympie. Seqwater provides essential flood mitigation services, and manages seven water supply schemes which provide irrigation services.

Seqwater’s revenue primarily comes from bulk water sales, with prices determined by the SEQ bulk water price path. In 2008, a 20-year bulk water price path was developed to phase in affordable price increases to fund the construction of the SEQ Water Grid and transition all Local Government Areas in SEQ to a ‘common price’. During the first 10-years of the price path it was anticipated that bulk water prices would not recover the costs of bulk water supply, which resulted in Seqwater selling bulk water at a loss, with the shortfall funded by borrowings (the resulting debt is known as ‘price path debt’). The following 10-years of the price path will see this debt repaid.

Most Local Government Areas in SEQ reached the common price in 2017-18, with the remaining Local Government Areas of Noosa, the Sunshine Coast, and Redland City to reach the common price by 2020-21.

The Queensland Competition Authority has conducted a Bulk Water Price Review to recommend urban bulk water prices for SEQ to apply from 1 July 2018. The final report was delivered to Government in March 2018.

Seqwater has maintained a positive operating position since the merger with the SEQ Water Grid Manager, LinkWater and the former Seqwater on 1 January 2013. Seqwater continues to set improved operational and capital efficiency targets to deliver value for money for customers.

SunWater

SunWater is the Government’s major bulk water supply business for all regions outside of SEQ. It supplies untreated bulk water to approximately 5,000 customers across the industrial, mining, urban and irrigation customer segments. SunWater provides this through an extensive regional asset base, owning and managing water infrastructure assets with a replacement value of around $13 billion.

Dam safety is a major focus for SunWater as it is for all bulk water suppliers. SunWater commenced a prioritised Dam Safety Improvement Program (DSIP) in 2005 to ensure that dam safety is maintained. The DSIP is regularly reviewed to ensure highest priority projects are addressed first.

113

Budget Strategy and Outlook 2018-19

The DSIP is an essential program to ensure the safety and stability of dams and the ongoing safety of downstream communities, and SunWater must undertake dam safety work to meet its obligations under Queensland dam safety regulations. However, it is also likely to significantly influence SunWater’s financial performance and net flows to the Government over the forward estimates period and beyond.

Key projects that will be progressed in 2018-19 include:

• Fairbairn Dam spillway improvements and rectification works

• progressing works for the Teemburra Dam safety improvement project

• strengthening the monoliths ‘D’ and ‘K’ within the primary spillway of Paradise Dam and undertaking secondary spillway improvements

• progressing works for the Leslie Dam safety improvement project.

Box 8.2 Rookwood Weir

The Rookwood Weir project presents an opportunity to supplement urban water supplies and enhance agricultural and industrial development in the Fitzroy Basin and Gladstone region. The weir could add 76,000 megalitres of water for agricultural production along the Fitzroy River, as well as an eventual back-up supply for Gladstone, Rockhampton and Livingstone Shire. The project is also expected to create 100 jobs in regional Queensland during construction.

Significant steps have been taken through the year toward the construction of Rookwood Weir. During 2017-18, Building Queensland publicly released the detailed business case and Queensland welcomed the Australian Government’s matching commitment to fund half of the construction costs amounting to $176 million.

The State has allocated matching funding across the next four years. This means that the capital costs of $352 million for the project are fully funded.

It is expected that SunWater will be constructing and operating the weir and preparatory activities are already underway.

The Queensland Government continues to engage with the Australian Government to formalise the details of the arrangement and to agree an appropriate split of operational costs for the Rookwood Weir so that construction can begin.

114

Budget Strategy and Outlook 2018-19

8.2 Finances and Performance

8.2.1 Earnings Before Interest and Tax

Total forecast PNFC Sector earnings before interest and tax (EBIT) for 2017-18 are estimated to be $4.476 billion, up from $4.053 billion forecast at the time of the 2017-18 State Budget. This increase is primarily due to increases in the electricity network and electricity generation sectors, driven in part by favourable wholesale energy market conditions, higher than budgeted regulated revenue collections, and operational business and procurement savings.

Over the forward estimates, total PNFC Sector EBIT is expected to decrease to $3.621 billion in 2021-22. Relative to 2016-17, EBIT in the energy sector (networks and generation) is estimated to fall by almost 30 per cent by 2018-19 and 38 per cent by 2021-22.

The decrease in electricity generation EBIT over the forward estimates is primarily driven by forecast reductions in wholesale generation revenues as new renewable entrants enter the wholesale market, adding increased competition.

Electricity network EBIT drops from $2.331 billion in 2017-18 to $1.899 billion in 2018-19 in line with a declining forecast of regulated revenue collections. Similarly, movement in electricity network EBIT over the forward estimates is influenced by forecasts of regulated revenue collections for the network businesses.

Water sector EBIT is expected to reach $573 million in 2019-20, largely reflecting the upwards trend associated with the SEQ bulk water price path. Water sector EBIT is revised downwards from 2020-21 in recognition of the increased spend by SunWater associated with dam safety upgrades.

Port sector EBIT is expected to trend steadily upwards over the forward estimates, driven by increased activity and forecast increased tonnage volumes.

Table 8.1 Earnings before interest and tax¹

	2016-17 Actual $ million		2017-18 Budget $ million		2017-18 Est. Act. $ million			2018-19 Budget $ million			2019-20 Projection $ million			2020-21 Projection $ million			2021-22 Projection $ million
Electricity Networks		2,888		2,064		2,331			1,899			1,914			1,937			1,965
Electricity Generation		1,241		1,070		1,230			1,009			804			695			598
Rail		328		291		304			325			326			365			389
Ports		206		188		178			203			248			251			266
Water		470		438		477			556			573			540			414
Other		36		1		(44	)		(16	)		(10	)		(11	)		(10	)
Total PNFC Sector		5,169		4,053		4,476			3,976			3,855			3,777			3,621

Note:

1. Numbers may not add due to rounding and bracketed numbers represent negative amounts.

115

Budget Strategy and Outlook 2018-19

8.2.2 Borrowings

Entities in the PNFC Sector utilise debt financing as a source of funds for asset renewal and capital investments, and to maintain an optimum capital structure.

PNFC Sector entities are required to take a prudent and sound approach to the management of debt, including the establishment of borrowing arrangements which are appropriate to the business risk of the organisation. These arrangements take into account the appropriateness of the proposed capital expenditure program, together with the implications of the borrowings for key financial and performance related indicators.

Total forecast PNFC Sector borrowings for 2017-18 are estimated to be $38.135 billion. Forecast borrowings are expected to increase to $40.802 billion by 2021-22. The increase in borrowings over the forward estimates is primarily driven by the rail and electricity network businesses.

Electricity network borrowings are forecast to increase over the forward estimates in line with growth in the regulated asset base. Rail sector borrowings are expected to increase in line with the Queensland Rail capital program.

Port sector borrowings are forecast to steadily increase over the forward estimates to fund new capital works and infrastructure projects, primarily at the Port of Townsville.

Borrowings in the water sector are largely attributable to Seqwater, which holds around $9.4 billion of debt. The debt balance is the result of the large investment in water infrastructure in response to the Millennium Drought and the associated price path. Seqwater’s forecast borrowings are stable across the forward estimates.

The gearing levels of all GOCs continue to be monitored to ensure that they maintain metrics that are at a minimum consistent with an investment grade credit rating.

Table 8.2 Borrowings¹

	2016-17 Actual $ million		2017-18 Budget $ million		2017-18 Est. Act. $ million		2018-19 Budget $ million			2019-20 Projection $ million			2020-21 Projection $ million			2021-22 Projection $ million
Electricity Networks		21,702		21,689		21,702		22,252			22,722			23,215			23,738
Electricity Generation		2,593		1,580		1,864		1,602			1,588			1,585			1,585
Rail		3,310		4,061		3,498		3,617			3,902			4,200			4,439
Ports		1,054		997		1,064		1,086			1,142			1,175			1,198
Water		9,955		9,846		9,992		10,005			10,017			10,014			9,878
Other2		29		57		14		(2	)		(18	)		(27	)		(36	)
Total PNFC Sector		38,644		38,231		38,135		38,560			39,353			40,162			40,802

Notes:

1. Numbers may not add due to rounding and bracketed numbers represent negative amounts.

2. Includes derivative adjustments for the energy GOC’s.

116

Budget Strategy and Outlook 2018-19

8.2.3 Returns to Government

PNFC Sector entities provide returns to Government by way of dividends and current tax equivalent payments.

Dividends

A GOC’s dividend policy is agreed with shareholding Ministers as part of the Statement of Corporate Intent for the relevant period. A Statement of Corporate Intent represents a performance contract between the shareholding Ministers and a GOC board, with the board being accountable to shareholding Ministers for meeting financial and non-financial performance targets and delivering on the outcomes detailed in the Statement of Corporate Intent.

When establishing the dividend policy for the period, a GOC board is expected to ensure it takes into account the return shareholders expect on their investments and the levels of equity required to maintain a preferred capital structure. The final dividend payment is determined in accordance with the GOC Act.

Total forecast PNFC Sector dividends for 2017-18 are estimated to be $1.819 billion, up from the $1.395 billion forecast in the 2017-18 State Budget. This increase in dividends has been driven by increased earnings from the electricity generation and electricity network businesses, which have benefited from favourable wholesale energy market conditions, higher than budgeted regulated revenue collections, and operational business and procurement savings. However, this is a temporary boost.

Importantly, the Government intends to use GOC dividend returns to help fund the $50 annual Asset Ownership Dividend which provides electricity bill relief for households over 2017-18 and 2018-19. The Asset Ownership Dividend forms part of the $2 billion Affordable Energy Plan which includes various initiatives aimed at making energy more affordable for households and businesses.

Lower profits from the GOC sector across the forward estimates are translating into much lower dividends. Relative to 2017-18, dividends are estimated to fall by 21 per cent by 2018-19 and by almost 40 per cent by 2021-22, with PNFC sector dividends projected to decrease to $1.108 billion in 2021-22. This reduction is being driven by the electricity sector, with electricity dividends halving across the forward estimates.

Electricity network dividends are expected to drop from $948 million in 2017-18 to $618 million in 2018-19, and are forecast to continue to decline over the forward estimates. Movements in electricity network dividends are influenced by forecasts of regulated revenue collections for the network businesses.

It is highlighted that the Government directed Energex and Ergon Energy to not appeal the Australian Energy Regulator’s (AER) determination in 2015. In the absence of this decision, the returns from the network sector would have been higher, resulting in a higher dividend baseline.

Electricity generation dividends are expected to decline over the forward estimates in line with the reduction in generation earnings as renewable generation alternatives enter the market.

117

Budget Strategy and Outlook 2018-19

The decline in water sector dividends in 2020-21 and 2021-22 reflects the increased costs associated with dam safety upgrades.

Table 8.3 Dividends¹

	2016-17 Actual $ million		2017-18 Budget $ million		2017-18 Est. Act. $ million		2018-19 Budget $ million		2019-20 Projection $ million		2020-21 Projection $ million		2021-22 Projection $ million
Electricity Networks		1,083		716		948		618		554		507		471
Electricity Generation		383		463		645		535		457		387		320
Rail		101		92		100		134		150		162		176
Ports		72		86		80		94		126		127		136
Water		8		28		36		55		36		5		5
Other		—		10		10		—		—		—		—
Total PNFC Sector		1,647		1,395		1,819		1,435		1,323		1,188		1,108

Note:

1. Numbers may not add due to rounding.

Tax Equivalent Payments

Tax equivalent payments (TEPs) are paid by the PNFC Sector entities to recognise the benefits derived from not being liable to pay Australian Government tax. The primary objective of the payment is to promote competitive neutrality, through a uniform application of income tax laws between the government-owned entities and their privately held counterparts.

Total forecast PNFC Sector TEPs for 2017-18 are estimated to be $770 million, up from the projected $572 million in the 2017-18 State Budget. This is largely driven by the increased profitability experienced by the electricity generation and electricity network sectors.

As TEPs generally move in line with earnings, TEPs are forecast to decrease from $770 million in 2017-18 to $499 million in 2021-22.

118

Budget Strategy and Outlook 2018-19

Table 8.4 Tax equivalent payments¹

	2016-17 Actual $ million		2017-18 Budget $ million		2017-18 Est. Act. $ million		2018-19 Budget $ million		2019-20 Projection $ million		2020-21 Projection $ million		2021-22 Projection $ million
Electricity Networks		556		324		417		290		265		244		229
Electricity Generation		190		154		249		236		234		215		164
Rail		29		39		44		47		37		32		29
Ports		47		37		41		51		66		66		69
Water		19		11		13		3		18		2		3
Other		3		7		5		5		5		5		5
Total PNFC Sector		844		572		770		630		626		564		499

Note:

1. Numbers may not add due to rounding.

Competitive Neutrality Fees

In accordance with the National Competition Policy principles, GOCs are expected to operate on the basis that they do not experience significant advantages or disadvantages by virtue of their Government ownership. One of the most significant advantages available to GOCs is the ability to borrow funds at a lower rate than private sector competitors on the basis of the State Government’s credit strength.

In order to account for this advantage, the Competition Principles Agreement requires a notional charge to be applied to a GOC’s cost of debt. A competitive neutrality fee (CNF) is thus applied to all borrowings and financial arrangements in the nature of debt obligations. In general, changes in CNF payments reflect movements in borrowing amounts, interest rate spreads and the entity’s stand-alone credit rating.

Total forecast PNFC Sector CNF payments for 2017-18 are estimated to be $139 million, $11 million higher than the $128 million forecast in the 2017-18 State Budget. CNF payments are forecast to increase from $139 million in 2017-18 to $206 million in 2021-22.

119

Budget Strategy and Outlook 2018-19

Table 8.5 Competitive neutrality fee payments¹

	2016-17 Actual $ million		2017-18 Budget $ million		2017-18 Est. Act. $ million		2018-19 Budget $ million		2019-20 Projection $ million		2020-21 Projection $ million		2021-22 Projection $ million
Electricity Networks		48		59		69		84		102		122		141
Electricity Generation		21		22		20		17		15		16		16
Rail		33		32		34		32		33		34		35
Ports		9		11		12		11		11		11		11
Water		4		5		5		5		5		5		5
Total PNFC Sector		115		128		139		150		166		187		206

Note:

1. Numbers may not add due to rounding.

8.2.4 Community Service Obligation and Rail Transport Services Contract Payments

The Government sometimes directs or requires its businesses to perform activities that are not in the entity’s commercial interest (for example, offering services at a reduced price to benefit the community). In these situations, the Government will often provide a Community Service Obligation (CSO) payment to the entity for the cost of delivering the service.

Transport Services Contract (TSC) payments are made to Queensland Rail to provide rail passenger services at non-commercial (subsidised) prices for the commuter and tourism markets.

In line with the Queensland Government’s Uniform Tariff Policy, a CSO payment is provided to Energy Queensland Limited to compensate the retail subsidiary for the increased costs of operating in regional Queensland. This subsidy is provided to ensure that Queenslanders, regardless of their geographic location, pay a similar price for their electricity.

Seqwater and SunWater own and operate water supply schemes, where irrigation prices for some schemes are set below the level necessary to recover the cost of supplying water to irrigators. The Government provides a CSO to offset the reduced revenue and to ensure that increases in water prices paid by rural irrigation customers to recover costs are gradual.

Total forecast PNFC Sector CSO and TSC payments for 2017-18 are estimated to be $2.142 billion, slightly lower than the $2.209 billion forecast at the time of the 2017-18 State Budget.

In 2018-19, it is estimated that the Government will provide CSO and TSC payments to PNFC Sector entities of $2.270 billion. This is forecast to increase to $2.501 billion in 2021-22, largely driven by the TSC. The increase in the TSC is due to a mix of factors such as changes in patronage, escalation of service delivery costs and forecast growth in services.

The CSO for the water sector will be determined from 2019-20, following the Queensland Competition Authority’s review of irrigation prices.

120

Budget Strategy and Outlook 2018-19

Table 8.6 Community service obligation payments and Transport Services Contracts¹

	2016-17 Actual $ million		2017-18 Budget $ million		2017-18 Est. Act. $ million		2018-19 Budget $ million		2019-20 Projection $ million		2020-21 Projection $ million		2021-22 Projection $ million
Electricity Networks		603		488		488		462		498		493		515
Rail		1,576		1,710		1,643		1,797		1,822		1,903		1,985
Water		13		11		11		11		—		—		—
Total PNFC Sector		2,191		2,209		2,142		2,270		2,320		2,397		2,501

Note:

1. Numbers may not add due to rounding.

8.2.5 Net Flows

Net flows represent the net value of flows to and from the PNFC Sector. This includes the positive effect of dividends and tax equivalent payments less the negative effect of CSO and TSC payments.

In contrast to the forecast in the 2017-18 State Budget, net flows to Government are expected to be positive in 2017-18, driven by upwards revisions in dividends and TEPs, particularly in the electricity sector (networks and generation).

Net flows are expected to be negative over the forward estimates. Key contributors to the deteriorating net flow position include the increasing TSC payment and declining dividend projections for the energy generation and electricity network sectors.

Table 8.7 Net flows to the General Government Sector from PNFC Sector entities¹

	2016-17 Actual $ million		2017-18 Budget $ million			2017-18 Est. Act. $ million		2018-19 Budget $ million			2019-20 Projection $ million			2020-21 Projection $ million			2021-22 Projection $ million
Total PNFC Sector		299		(242	)		447		(204	)		(371	)		(644	)		(894	)

Note:

1. Numbers may not add due to rounding. Bracketed numbers represent a net flow from the General Government Sector to the PNFC Sector.

121

Budget Strategy and Outlook 2018-19

8.2.6 Equity Movements

The levels and weightings of GOC debt and equity are managed by the Government to maintain an optimal and efficient capital structure. Corporations may have different target capital structures for different business entities or to support expected capital programs and projects.

Total forecast PNFC Sector equity movements for 2017-18 are estimated to be an equity reduction of $60 million.

Equity movements across the forward estimates are primarily influenced by the electricity networks sector. These equity movements reflect changes to ensure an efficient level of gearing is maintained for Energy Queensland Limited and Powerlink.

In 2018-19, Port of Townsville will receive an equity injection of $60 million to undertake works associated with the Channel Capacity Upgrade project.

In 2018-19, Queensland Rail will receive an equity injection of $460 million in relation to the Moreton Bay Rail Link project, which was constructed by the Department of Transport and Main Roads but will be transferred to Queensland Rail as the rail operator.

In 2019-20, SunWater will receive an equity injection of $100 million to undertake essential dam safety upgrades at Burdekin Falls Dam, and to develop a detailed business case for improvement, to ensure the dam continues to meet current best practice standards.

Table 8.8 Equity movements¹

	2016-17 Actual $ million			2017-18 Budget $ million			2017-18 Est. Act. $ million			2018-19 Budget $ million			2019-20 Projection $ million			2020-21 Projection $ million			2021-22 Projection $ million
Electricity Networks		(160	)		(20	)		(50	)		(110	)		(190	)		(545	)		(510	)
Electricity Generation		—			—			—			—			—			—			—
Rail		—			18			(5	)		460			—			—			—
Ports		(110	)		—			—			60			—			—			—
Water		—			—			(5	)		(4	)		100			—			—
Other		10			—			—			—			—			—			—
Total PNFC Sector		(260	)		(1	)		(60	)		406			(90	)		(545	)		(510	)

Note:

1. Numbers may not add due to rounding. Bracketed numbers represent equity returns from the PNFC Sector to the General Government Sector.

122

Budget Strategy and Outlook 2018-19

9 Uniform Presentation Framework

9.1 Context

This chapter contains detailed financial statements for the Queensland Public Sector prepared under the Uniform Presentation Framework (UPF) of reporting as required under the Australian Loan Council arrangements.

The UPF was reviewed following the release in October 2007 of the Australian Accounting Standards Board’s (AASB) accounting standard, AASB 1049 Whole of Government and General Government Sector Financial Reporting. The standard aims to harmonise Government Finance Statistics (GFS) and Generally Accepted Accounting Principles (GAAP) with the objective of improving the clarity and transparency of government financial statements.

In addition, the chapter provides:

• a reconciliation of the General Government Sector net operating balance to the accounting operating result

• a time series for the General Government Sector using the revised UPF

• details of General Government Sector grant revenue and expenses

• details of General Government Sector dividend and income tax equivalent income

• data on General Government Sector expenses and purchases of non-financial assets by function

• details of taxation revenue collected by the General Government Sector

• details of contingent liabilities

• background information on the revised UPF and disclosure differences arising from it, including the conceptual basis, sector definitions and a list of reporting entities.

9.2 Uniform Presentation Framework financial information

The tables on the following pages present operating statements, balance sheets and cash flow statements prepared on a harmonised basis for the General Government, Public Non-financial Corporations (PNFC) and Non-financial Public Sectors.

Under the UPF requirements, budgeted financial information for the Public Financial Corporations sector is not included.

123

Budget Strategy and Outlook 2018-19

Table 9.1 General Government Sector Operating Statement¹

			2016-17 Outcome $ million			2017-18 Budget $ million			2017-18 Est. Act. $ million			2018-19 Budget $ million			2019-20 Projection $ million			2020-21 Projection $ million			2021-22 Projection $ million
	Revenue from Transactions
	Taxation revenue			12,919			13,298			13,284			14,155			15,184			15,951			16,722
	Grants revenue			27,383			27,631			28,481			27,701			28,156			29,062			30,387
	Sales of goods and services			5,642			6,067			5,861			5,731			5,947			6,074			6,306
	Interest income			2,336			2,330			2,323			2,201			2,078			1,861			1,855
	Dividend and income tax equivalent income			2,690			2,057			2,686			2,217			2,075			1,910			1,787
	Other revenue			5,222			4,487			5,623			5,733			5,395			5,083			5,212
	Total Revenue from Transactions			56,194			55,869			58,259			57,738			58,835			59,939			62,269
Less	Expenses from Transactions
	Employee expenses			21,258			22,420			22,838			23,807			24,645			25,541			26,466
	Superannuation expenses
	Superannuation interest cost			514			600			665			667			717			774			778
	Other superannuation expenses			2,661			2,753			2,819			2,887			2,933			2,957			3,001
	Other operating expenses			15,582			17,037			17,382			15,774			15,119			15,291			15,745
	Depreciation and amortisation			3,068			3,093			3,330			3,429			3,543			3,650			3,776
	Other interest expenses			1,722			1,706			1,616			1,474			1,643			1,691			1,794
	Grants expenses			8,568			8,114			8,096			9,552			10,075			9,926			10,019
	Total Expenses from Transactions			53,373			55,723			56,747			57,590			58,675			59,829			61,579
Equals	Net Operating Balance			2,821			146			1,512			148			160			110			690
Plus	Other economic flows - included in operating result			381			(75	)		(91	)		85			202			483			398
Equals	Operating Result			3,202			71			1,421			233			363			593			1,088
Plus	Other economic flows - other movements in equity			(176	)		3,785			3,329			2,717			2,776			1,733			1,326
Equals	Comprehensive Result - Total Change In Net Worth			3,027			3,856			4,750			2,950			3,139			2,326			2,414
	KEY FISCAL AGGREGATES
	Net Operating Balance			2,821			146			1,512			148			160			110			690
Less	Net Acquisition of Non-financial Assets
	Purchases of non-financial assets			4,634			5,123			4,905			5,927			7,557			7,396			7,081
	Less	Sales of non-financial assets		389			392			227			345			373			343			165
	Less	Depreciation		3,068			3,093			3,330			3,429			3,543			3,650			3,776
	Plus	Change in inventories		5			73			32			(4	)		(67	)		(74	)		6
	Plus	Other movements in non-financial assets		1,103			797			735			1,032			467			180			180
	Equals	Total Net Acquisition of Non-financial Assets		2,285			2,508			2,115			3,181			4,042			3,510			3,326
Equals	Fiscal Balance			536			(2,363	)		(604	)		(3,033	)		(3,881	)		(3,400	)		(2,636	)

Note:

1. Numbers may not add due to rounding and bracketed numbers represent negative amounts.

124

Budget Strategy and Outlook 2018-19

Table 9.2 Public Non-financial Corporations Sector Operating Statement¹

			2016-17 Outcome $ million			2017-18 Budget $ million		2017-18 Est. Act. $ million			2018-19 Budget $ million			2019-20 Projection $ million			2020-21 Projection $ million			2021-22 Projection $ million
	Revenue from Transactions
	Grants revenue			1,491			647		610			632			640			636			659
	Sales of goods and services			12,712			10,950		12,141			11,718			11,627			11,944			12,131
	Interest income			45			37		63			52			50			58			59
	Dividend and income tax equivalent income			15			14		13			13			13			13			13
	Other revenue			381			300		477			318			298			250			259
	Total Revenue from Transactions			14,644			11,948		13,303			12,733			12,628			12,900			13,121
Less	Expenses from Transactions
	Employee expenses			1,654			1,925		1,909			1,981			2,030			2,034			2,077
	Superannuation expenses
	Superannuation interest cost			(4	)		—		—			—			—			—			—
	Other superannuation expenses			241			155		151			164			169			173			177
	Other operating expenses			4,286			3,388		4,275			4,032			3,784			3,996			4,102
	Depreciation and amortisation			2,382			2,575		2,470			2,618			2,708			2,749			2,828
	Other interest expenses			2,030			1,952		1,881			1,908			1,988			2,078			2,155
	Grants expenses			791			21		27			22			22			23			23
	Other property expenses			849			578		773			637			632			571			506
	Total Expenses from Transactions			12,229			10,594		11,486			11,361			11,332			11,625			11,866
Equals	Net Operating Balance			2,415			1,354		1,817			1,372			1,296			1,275			1,255
Plus	Other economic flows - included in operating result			(176	)		57		(58	)		(29	)		(52	)		(144	)		(289	)
Equals	Operating Result			2,239			1,412		1,759			1,343			1,244			1,131			966
Plus	Other economic flows - other movements in equity			(1,572	)		60		(1,120	)		(532	)		(905	)		(1,211	)		(1,076	)
Equals	Comprehensive Result - Total Change In Net Worth			666			1,472		639			810			338			(80	)		(110	)
	KEY FISCAL AGGREGATES
	Net Operating Balance			2,415			1,354		1,817			1,372			1,296			1,275			1,255
Less	Net Acquisition of Non-financial Assets
	Purchases of non-financial assets			2,708			2,866		2,751			3,130			3,229			3,126			3,097
	Less	Sales of non-financial assets		71			46		46			11			8			8			6
	Less	Depreciation		2,382			2,575		2,470			2,618			2,708			2,749			2,828
	Plus	Change in inventories		4			3		(44	)		35			(0	)		4			9
	Plus	Other movements in non-financial assets		68			68		73			68			69			70			71
	Equals	Total Net Acquisition of Non-financial Assets		327			316		263			604			582			443			343
Equals	Fiscal Balance			2,088			1,038		1,554			767			713			832			913

Note:

1. Numbers may not add due to rounding and bracketed numbers represent negative amounts.

125

Budget Strategy and Outlook 2018-19

Table 9.3 Non-financial Public Sector Operating Statement¹

			2016-17 Outcome $ million			2017-18 Budget $ million			2017-18 Est. Act. $ million			2018-19 Budget $ million			2019-20 Projection $ million			2020-21 Projection $ million			2021-22 Projection $ million
	Revenue from Transactions
	Taxation revenue			12,685			13,062			13,040			13,892			14,902			15,645			16,394
	Grants revenue			27,415			27,722			28,519			27,788			28,244			29,151			30,477
	Sales of goods and services			16,545			15,025			16,082			15,353			15,433			15,778			16,128
	Interest income			2,381			2,367			2,342			2,219			2,099			1,893			1,887
	Dividend and income tax equivalent income			215			103			109			164			139			170			193
	Other revenue			5,598			4,786			6,098			6,051			5,693			5,333			5,471
	Total Revenue from Transactions			64,840			63,066			66,192			65,467			66,510			67,970			70,550
Less	Expenses from Transactions
	Employee expenses			22,809			24,249			24,655			25,688			26,571			27,469			28,434
	Superannuation expenses
	Superannuation interest cost			510			600			665			667			717			774			778
	Other superannuation expenses			2,902			2,908			2,970			3,051			3,102			3,129			3,178
	Other operating expenses			18,042			18,428			19,728			17,703			16,755			17,040			17,530
	Depreciation and amortisation			5,450			5,668			5,800			6,047			6,251			6,399			6,604
	Other interest expenses			3,637			3,530			3,313			3,198			3,437			3,558			3,717
	Grants expenses			7,900			7,579			7,550			9,029			9,545			9,402			9,473
	Total Expenses from Transactions			61,251			62,961			64,682			65,383			66,377			67,772			69,713
Equals	Net Operating Balance			3,589			105			1,510			84			133			197			837
Plus	Other economic flows - included in operating result			45			(37	)		(199	)		(54	)		(39	)		(207	)		(401	)
Equals	Operating Result			3,634			67			1,311			31			93			(9	)		436
Plus	Other economic flows - other movements in equity			(608	)		3,789			3,439			2,920			3,045			2,335			1,979
Equals	Comprehensive Result - Total Change In Net Worth			3,027			3,856			4,750			2,950			3,139			2,326			2,414
	KEY FISCAL AGGREGATES
	Net Operating Balance			3,589			105			1,510			84			133			197			837
Less	Net Acquisition of Non-financial Assets
	Purchases of non-financial assets			7,305			7,989			7,656			9,057			10,786			10,523			10,177
	Less	Sales of non-financial assets		460			438			273			356			381			351			171
	Less	Depreciation		5,450			5,668			5,800			6,047			6,251			6,399			6,604
	Plus	Change in inventories		10			77			(12	)		31			(67	)		(69	)		15
	Plus	Other movements in non-financial assets		1,171			865			809			1,100			536			251			252
	Equals	Total Net Acquisition of Non-financial Assets		2,576			2,825			2,379			3,785			4,624			3,953			3,668
Equals	Fiscal Balance			1,013			(2,720	)		(869	)		(3,701	)		(4,491	)		(3,756	)		(2,831	)

Note:

1. Numbers may not add due to rounding and bracketed numbers represent negative amounts.

126

Budget Strategy and Outlook 2018-19

Table 9.4 General Government Sector Balance Sheet¹

	2016-17 Outcome $ million			2017-18 Budget $ million			2017-18 Est. Act. $ million			2018-19 Budget $ million			2019-20 Projection $ million			2020-21 Projection $ million			2021-22 Projection $ million
Assets
Financial Assets
Cash and deposits		1,069			548			579			303			285			228			338
Advances paid		678			831			630			703			695			751			812
Investments, loans and placements		33,633			32,301			32,655			30,306			29,078			28,957			28,817
Receivables		4,926			4,190			4,523			4,182			4,218			4,480			4,375
Equity
Investments in other public sector entities		21,866			22,787			23,002			23,812			24,151			24,071			23,961
Investments - other		154			156			154			154			154			154			154
Total Financial Assets		62,327			60,814			61,544			59,460			58,581			58,642			58,458
Non-financial Assets
Land and other fixed assets		200,632			205,439			203,721			207,985			212,987			217,425			221,688
Other non-financial assets		6,921			6,969			7,179			6,767			6,999			7,146			7,328
Total Non-financial Assets		207,553			212,407			210,900			214,752			219,987			224,570			229,016
Total Assets		269,879			273,222			272,443			274,212			278,568			283,213			287,474
Liabilities
Payables		4,372			4,089			4,015			4,088			4,181			4,217			4,252
Superannuation liability		26,123			23,355			25,294			23,414			21,334			19,946			18,877
Other employee benefits		5,608			5,510			5,749			5,888			5,878			6,036			6,271
Deposits held		3			3			2			2			2			2			2
Advances received		1,831			1,541			2,229			1,814			1,531			1,365			1,382
Borrowing		33,260			33,758			31,367			32,311			35,861			39,588			42,290
Other liabilities		3,747			3,044			4,100			4,059			4,005			3,957			3,883
Total Liabilities		74,943			71,299			72,757			71,575			72,793			75,112			76,958
Net Worth		194,936			201,922			199,686			202,636			205,775			208,101			210,515
Net Financial Worth		(12,617	)		(10,485	)		(11,213	)		(12,115	)		(14,211	)		(16,470	)		(18,501	)
Net Financial Liabilities		34,483			33,273			34,216			35,928			38,362			40,540			42,462
Net Debt		(287	)		1,622			(267	)		2,815			7,336			11,018			13,707

Note:

1. Numbers may not add due to rounding and bracketed numbers represent negative amounts.

127

Budget Strategy and Outlook 2018-19

Table 9.5 Public Non-financial Corporations Sector Balance Sheet¹

	2016-17 Outcome $ million			2017-18 Budget $ million			2017-18 Est. Act. $ million			2018-19 Budget $ million			2019-20 Projection $ million			2020-21 Projection $ million			2021-22 Projection $ million
Assets
Financial Assets
Cash and deposits		1,464			524			698			465			489			593			542
Advances paid		1,370			1,073			1,762			1,360			1,157			1,011			1,045
Investments, loans and placements		749			395			578			547			507			470			473
Receivables		1,581			1,610			1,585			1,432			1,487			1,628			1,574
Equity
Investments - other		302			280			240			240			240			240			240
Total Financial Assets		5,465			3,882			4,863			4,043			3,881			3,941			3,874
Non-financial Assets
Land and other fixed assets		61,138			62,730			62,132			63,882			65,133			66,181			66,975
Other non-financial assets		1,472			1,112			1,193			1,203			1,207			1,224			1,277
Total Non-financial Assets		62,610			63,842			63,326			65,085			66,340			67,405			68,251
Total Assets		68,075			67,724			68,188			69,128			70,221			71,346			72,126
Liabilities
Payables		3,411			2,809			3,366			2,890			2,690			2,942			2,963
Superannuation liability		(332	)		(155	)		(324	)		(316	)		(308	)		(300	)		(292	)
Other employee benefits		761			767			752			746			752			757			763
Deposits held		17			23			17			17			17			17			17
Advances received		7			7			7			6			5			5			4
Borrowing		38,644			38,231			38,135			38,560			39,353			40,162			40,802
Other liabilities		7,691			7,470			7,722			7,901			8,050			8,182			8,396
Total Liabilities		50,200			49,151			49,675			49,805			50,559			51,764			52,653
Net Worth		17,875			18,573			18,513			19,323			19,662			19,582			19,472
Net Financial Worth		(44,735	)		(45,269	)		(44,812	)		(45,761	)		(46,679	)		(47,823	)		(48,779	)
Net Debt		35,087			36,268			35,121			36,212			37,222			38,111			38,763

Note:

1. Numbers may not add due to rounding and bracketed numbers represent negative amounts.

128

Budget Strategy and Outlook 2018-19

Table 9.6 Non-financial Public Sector Balance Sheet¹

	2016-17 Outcome $ million			2017-18 Budget $ million			2017-18 Est. Act. $ million			2018-19 Budget $ million			2019-20 Projection $ million			2020-21 Projection $ million			2021-22 Projection $ million
Assets
Financial Assets
Cash and deposits		2,533			1,073			1,277			768			774			821			880
Advances paid		695			842			616			682			668			725			786
Investments, loans and placements		34,382			32,696			33,234			30,852			29,586			29,427			29,290
Receivables		4,597			4,005			3,949			3,808			3,952			4,177			4,207
Equity
Investments in other public sector entities		3,993			4,216			4,490			4,490			4,490			4,490			4,490
Investments - other		456			436			393			394			394			394			394
Total Financial Assets		46,655			43,267			43,959			40,994			39,863			40,033			40,048
Non-financial Assets
Land and other fixed assets		261,769			268,168			265,853			271,866			278,120			283,605			288,662
Other non-financial assets		1,408			1,451			1,594			1,014			1,094			1,073			1,025
Total Non-financial Assets		263,177			269,619			267,447			272,880			279,214			284,678			289,687
Total Assets		309,832			312,885			311,406			313,874			319,077			324,711			329,735
Liabilities
Payables		5,892			5,155			5,243			5,193			5,139			5,250			5,497
Superannuation liability		25,791			23,200			24,971			23,098			21,026			19,646			18,585
Other employee benefits		6,369			6,277			6,501			6,634			6,629			6,793			7,034
Deposits held		20			26			19			19			19			19			19
Advances received		486			485			460			439			352			333			315
Borrowing		71,904			71,989			69,501			70,871			75,214			79,750			83,093
Other liabilities		4,433			3,831			5,024			4,982			4,921			4,820			4,676
Total Liabilities		114,896			110,963			111,720			111,237			113,302			116,611			119,220
Net Worth		194,936			201,922			199,686			202,636			205,775			208,101			210,515
Net Financial Worth		(68,241	)		(67,697	)		(67,760	)		(70,243	)		(73,439	)		(76,577	)		(79,172	)
Net Financial Liabilities		72,234			71,912			72,250			74,733			77,928			81,067			83,662
Net Debt		34,800			37,890			34,854			39,027			44,558			49,129			52,471

Note:

1. Numbers may not add due to rounding and bracketed numbers represent negative amounts.

129

Budget Strategy and Outlook 2018-19

Table 9.7 General Government Sector Cash Flow Statement¹

	2016-17 Outcome2 $ million			2017-18 Budget2 $ million			2017-18 Est. Act. $ million			2018-19 Budget $ million			2019-20 Projection $ million			2020-21 Projection $ million			2021-22 Projection $ million
Cash Receipts from Operating Activities
Taxes received		12,940			13,296			13,282			14,153			15,183			15,949			16,721
Grants and subsidies received		27,174			27,628			28,529			27,712			28,153			29,059			30,384
Sales of goods and services		6,116			6,165			5,966			5,947			6,158			6,292			6,520
Interest receipts		2,337			2,328			2,321			2,199			2,076			1,859			1,852
Dividends and income tax equivalents		1,929			2,309			2,532			2,619			2,185			2,068			1,975
Other receipts		6,477			5,595			6,867			7,007			6,681			6,323			6,350
Total Operating Receipts		56,973			57,320			59,497			59,637			60,435			61,550			63,803
Cash Payments for Operating Activities
Payments for employees		(24,278	)		(26,099	)		(26,375	)		(27,701	)		(28,911	)		(29,736	)		(30,746	)
Payments for goods and services		(17,005	)		(18,661	)		(18,691	)		(17,635	)		(16,960	)		(17,115	)		(17,607	)
Grants and subsidies		(8,325	)		(8,045	)		(8,186	)		(9,492	)		(10,030	)		(9,870	)		(9,974	)
Interest paid		(1,700	)		(1,706	)		(1,614	)		(1,474	)		(1,645	)		(1,692	)		(1,795	)
Other payments		(5	)											(1	)		(1	)		(3	)
Total Operating Payments		(51,313	)		(54,511	)		(54,866	)		(56,303	)		(57,546	)		(58,414	)		(60,123	)
Net Cash Inflows from Operating Activities		5,660			2,809			4,631			3,334			2,889			3,136			3,680
Cash Flows from Investments in Non-Financial Assets
Purchases of non-financial assets		(4,634	)		(5,123	)		(4,905	)		(5,927	)		(7,557	)		(7,396	)		(7,081	)
Sales of non-financial assets		389			392			227			345			373			343			165
Net Cash Flows from Investments in Non-financial Assets		(4,244	)		(4,731	)		(4,678	)		(5,582	)		(7,185	)		(7,053	)		(6,916	)
Net Cash Flows from Investments in Financial Assets for Policy Purposes		954			460			515			(53	)		41			167			457
Net Cash Flows from Investments in Financial Assets for Liquidity Purposes		(2,615	)		1,268			(1,054	)		2,877			4,734			817			153
Receipts from Financing Activities
Advances received (net)		1,315			210			403			(410	)		(277	)		(176	)		25
Borrowing (net)		(1,118	)		(176	)		(353	)		(393	)		(221	)		3,053			2,711
Deposits received (net)		14			—			46			(47	)		—			—			—
Net Cash Flows from Financing Activities		211			33			96			(851	)		(498	)		2,877			2,735
Net Increase/(Decrease) in Cash held		(35	)		(161	)		(491	)		(275	)		(19	)		(56	)		109
Net cash from operating activities		5,660			2,809			4,631			3,334			2,889			3,136			3,680
Net cash flows from investments in non-financial assets		(4,244	)		(4,731	)		(4,678	)		(5,582	)		(7,185	)		(7,053	)		(6,916	)
Surplus/(Deficit)		1,416			(1,922	)		(47	)		(2,248	)		(4,295	)		(3,917	)		(3,236	)
Derivation of ABS GFS Cash Surplus/Deficit
Cash surplus/(deficit)		1,416			(1,922	)		(47	)		(2,248	)		(4,295	)		(3,917	)		(3,236	)
Acquisitions under finance leases and similar arrangements		(758	)		(618	)		(559	)		(864	)		(287	)		—			—
ABS GFS Cash Surplus/(Deficit) Including Finance Leases and Similar Arrangements		658			(2,540	)		(606	)		(3,112	)		(4,582	)		(3,917	)		(3,236	)

Notes:

1. Numbers may not add due to rounding and bracketed numbers represent negative amounts.

2. With the implementation of the latest GFS Manual (AGFS15), the 2016-17 Outcomes and 2017-18 Budget cash flow categories have been restated above to ensure comparability.

130

Budget Strategy and Outlook 2018-19

Table 9.8 Public Non-financial Corporations Sector Cash Flow Statement¹

	2016-17 Outcome2 $ million			2017-18 Budget2 $ million			2017-18 Est. Act. $ million			2018-19 Budget $ million			2019-20 Projection $ million			2020-21 Projection $ million			2021-22 Projection $ million
Cash Receipts from Operating Activities
Grants and subsidies received		1,451			623			585			585			605			601			624
Sales of goods and services		14,187			12,268			13,374			13,113			12,749			12,998			13,396
Interest receipts		44			37			63			52			50			58			59
Dividends and income tax equivalents		15			14			13			13			13			13			13
Other receipts		335			257			394			215			224			174			179
Total Operating Receipts		16,032			13,198			14,429			13,977			13,641			13,844			14,270
Cash Payments for Operating Activities
Payments for employees		(1,874	)		(2,072	)		(2,062	)		(2,143	)		(2,185	)		(2,194	)		(2,239	)
Payments for goods and services		(5,290	)		(4,192	)		(4,890	)		(4,610	)		(4,307	)		(4,553	)		(4,545	)
Grants and subsidies		(20	)		(289	)		(281	)		(264	)		(269	)		(52	)		(23	)
Interest paid		(2,054	)		(1,960	)		(1,900	)		(1,910	)		(1,987	)		(2,081	)		(2,154	)
Other payments		(1,577	)		(1,071	)		(1,260	)		(1,172	)		(1,164	)		(1,148	)		(1,148	)
Total Operating Payments		(10,815	)		(9,584	)		(10,392	)		(10,098	)		(9,913	)		(10,028	)		(10,110	)
Net Cash Inflows from Operating Activities		5,217			3,614			4,037			3,879			3,729			3,816			4,161
Cash Flows from Investments in Non-Financial Assets
Purchases of non-financial assets		(2,708	)		(2,866	)		(2,751	)		(3,130	)		(3,229	)		(3,126	)		(3,097	)
Sales of non-financial assets		71			46			46			11			8			8			6
Net Cash Flows from Investments in Non-financial Assets		(2,637	)		(2,820	)		(2,704	)		(3,119	)		(3,221	)		(3,118	)		(3,090	)
Net Cash Flows from Investments in Financial Assets for Policy Purposes		(2,100	)		(252	)		(473	)		284			41			(79	)		(569	)
Net Cash Flows from Investments in Financial Assets for Liquidity Purposes		116			—			(8	)		(3	)		(4	)		(4	)		(5	)
Receipts from Financing Activities
Advances received (net)		(1	)		(1	)		(1	)		(1	)		(1	)		(1	)		(1	)
Borrowing (net)		768			122			41			471			815			814			642
Dividends paid		(747	)		(1,646	)		(1,658	)		(1,805	)		(1,435	)		(1,324	)		(1,188	)
Deposits received (net)		(3	)		—			—			—			—			—			—
Other financing (net)		(692	)		18			1			60			100			—			—
Net Cash Flows from Financing Activities		(675	)		(1,506	)		(1,617	)		(1,275	)		(521	)		(510	)		(546	)
Net Increase/(Decrease) in Cash held		(79	)		(965	)		(766	)		(233	)		25			104			(50	)
Net cash from operating activities		5,217			3,614			4,037			3,879			3,729			3,816			4,161
Net cash flows from investments in non-financial assets		(2,637	)		(2,820	)		(2,704	)		(3,119	)		(3,221	)		(3,118	)		(3,090	)
Dividends paid		(747	)		(1,646	)		(1,658	)		(1,805	)		(1,435	)		(1,324	)		(1,188	)
Surplus/(Deficit)		1,834			(853	)		(326	)		(1,045	)		(927	)		(626	)		(117	)
Derivation of ABS GFS Cash Surplus/Deficit
Cash surplus/(deficit)		1,834			(853	)		(326	)		(1,045	)		(927	)		(626	)		(117	)
ABS GFS Cash Surplus/(Deficit) Including Finance Leases and Similar Arrangements		1,834			(853	)		(326	)		(1,045	)		(927	)		(626	)		(117	)

Notes:

1. Numbers may not add due to rounding and bracketed numbers represent negative amounts.

2. With the implementation of the latest GFS Manual (AGFS15), the 2016-17 Outcomes and 2017-18 Budget cash flow categories have been restated above to ensure comparability.

131

Budget Strategy and Outlook 2018-19

Table 9.9 Non-financial Public Sector Cash Flow Statement¹

	2016-17 Outcome2 $ million			2017-18 Budget2 $ million			2017-18 Est. Act. $ million			2018-19 Budget $ million			2019-20 Projection $ million			2020-21 Projection $ million			2021-22 Projection $ million
Cash Receipts from Operating Activities
Taxes received		12,682			13,061			13,039			13,891			14,901			15,644			16,393
Grants and subsidies received		27,201			27,708			28,556			27,788			28,230			29,137			30,464
Sales of goods and services		18,454			16,085			17,069			16,609			16,391			16,671			17,223
Interest receipts		2,381			2,365			2,340			2,217			2,097			1,891			1,885
Dividends and income tax equivalents		157			94			179			166			126			150			179
Other receipts		6,805			5,851			7,259			7,222			6,905			6,498			6,529
Total Operating Receipts		67,680			65,164			68,442			67,892			68,650			69,991			72,672
Cash Payments for Operating Activities
Payments for employees		(26,050	)		(28,075	)		(28,344	)		(29,743	)		(30,993	)		(31,824	)		(32,877	)
Payments for goods and services		(20,329	)		(20,504	)		(21,302	)		(19,789	)		(18,745	)		(19,043	)		(19,452	)
Grants and subsidies		(6,920	)		(7,791	)		(7,908	)		(9,247	)		(9,771	)		(9,398	)		(9,451	)
Interest paid		(3,616	)		(3,539	)		(3,331	)		(3,202	)		(3,438	)		(3,563	)		(3,717	)
Other payments		(670	)		(479	)		(548	)		(503	)		(520	)		(535	)		(522	)
Total Operating Payments		(57,585	)		(60,387	)		(61,432	)		(62,484	)		(63,467	)		(64,363	)		(66,020	)
Net Cash Inflows from Operating Activities		10,095			4,776			7,010			5,408			5,183			5,628			6,653
Cash Flows from Investments in Non-Financial Assets
Purchases of non-financial assets		(7,305	)		(7,989	)		(7,656	)		(9,057	)		(10,786	)		(10,523	)		(10,177	)
Sales of non-financial assets		460			438			273			356			381			351			171
Net Cash Flows from Investments in Non-financial Assets		(6,845	)		(7,551	)		(7,383	)		(8,701	)		(10,405	)		(10,171	)		(10,006	)
Net Cash Flows from Investments in Financial Assets for Policy Purposes		(42	)		457			465			(104	)		(15	)		(59	)		(79	)
Net Cash Flows from Investments in Financial Assets for Liquidity Purposes		(2,499	)		1,268			(1,063	)		2,873			4,730			813			148
Receipts from Financing Activities
Advances received (net)		(30	)		(22	)		(21	)		(16	)		(81	)		(30	)		(10	)
Borrowing (net)		(350	)		(54	)		(312	)		78			594			3,867			3,353
Deposits received (net)		11			—			46			(47	)		—			—			—
Other financing (net)		(452	)		—			1			—			—			—			—
Net Cash Flows from Financing Activities		(821	)		(76	)		(286	)		15			513			3,837			3,343
Net Increase/(Decrease) in Cash held		(113	)		(1,126	)		(1,256	)		(509	)		6			48			59
Net cash from operating activities		10,095			4,776			7,010			5,408			5,183			5,628			6,653
Net cash flows from investments in non-financial assets		(6,845	)		(7,551	)		(7,383	)		(8,701	)		(10,405	)		(10,171	)		(10,006	)
Surplus/(Deficit)		3,249			(2,775	)		(373	)		(3,293	)		(5,222	)		(4,543	)		(3,353	)
Derivation of ABS GFS Cash Surplus/Deficit
Cash surplus/(deficit)		3,249			(2,775	)		(373	)		(3,293	)		(5,222	)		(4,543	)		(3,353	)
Acquisitions under finance leases and similar arrangements		(758	)		(618	)		(559	)		(864	)		(287	)		—			—
ABS GFS Cash Surplus/(Deficit) Including Finance Leases and Similar Arrangements		2,492			(3,393	)		(932	)		(4,157	)		(5,509	)		(4,543	)		(3,353	)

Notes:

1. Numbers may not add due to rounding and bracketed numbers represent negative amounts.

2. With the implementation of the latest GFS Manual (AGFS15), the 2016-17 Outcomes and 2017-18 Budget cash flow categories have been restated above to ensure comparability.

132

Budget Strategy and Outlook 2018-19

9.3 Reconciliation of net operating balance to accounting operating result

The primary difference between the net operating balance and the accounting operating result calculated under Australian Accounting Standards is that valuation adjustments are excluded from the net operating balance.

Data presented in Table 9.10 provides a reconciliation of the General Government Sector net operating balance to the accounting operating result.

Table 9.10 Reconciliation of UPF net operating balance to accounting operating result¹

	2017-18 Budget $ million			2017-18 Est. Act. $ million			2018-19 Budget $ million
Net operating balance General Government sector (Table 9.1)		146			1,512			148
Remeasurement/valuation adjustments
Bad debts and amortisation		(89	)		(93	)		(96	)
Deferred tax equivalents		64			16			(1	)
Dividends from network GOCs under Debt Action Plan (treated as return of equity for UPF)		20			50			110
Market value adjustments on financial assets and liabilities		17			31			11
Revaluation of provisions		66			12			87
Decommissioned infrastructure assets and land under roads		(143	)		(12	)		(12	)
Gain/(loss) on assets sold/written off/impaired		(9	)		(96	)		(12	)
Accounting operating result General Government sector		71			1,421			233

Note:

1. Numbers may not add due to rounding and bracketed numbers represent negative amounts.

9.4 General Government Sector time series

Data presented in Table 9.11 provides a time series from 2005-06 to 2016-17 for the General Government Sector on the key fiscal aggregates used by the Government to measure financial performance. These aggregates have been backcast (as far as possible) to comply with AASB 1049 Whole of Government and General Government Sector Financial Reporting.

133

Budget Strategy and Outlook 2018-19

Table 9.11 General Government Sector time series¹

	2005-06 Actual $ million			2006-07 Actual $ million			2007-08 Actual $ million			2008-09 Actual $ million			2009-10 Actual $ million			2010-11 Actual $ million			2011-12 Actual $ million			2012-13 Actual $ million			2013-14 Actual $ million			2014-15 Actual $ million			2015-16 Actual $ million			2016-17 Actual $ million
Revenue from Transactions
Taxation revenue		7,396			8,484			9,546			8,866			9,375			9,981			10,608			10,937			11,840			12,598			12,547			12,919
Grant revenue		13,590			14,378			15,510			17,481			20,205			20,338			22,652			18,322			21,740			23,583			23,740			27,383
Sales of goods and services		2,641			2,909	��		3,357			3,648			3,961			4,172			5,002			5,087			5,039			5,443			5,712			5,642
Interest income		3,414			3,338			(275	)		1,482			2,204			2,368			2,485			2,644			2,460			2,470			2,543			2,336
Dividend and income tax equivalent income		1,059			858			1,244			1,180			949			1,232			1,112			1,351			1,975			2,554			2,661			2,690
Other revenue		1,983			2,032			2,041			4,421			3,033			3,921			3,942			3,415			3,650			3,322			3,577			5,222
Total Revenue		30,084			31,999			31,424			37,078			39,727			42,013			45,801			41,755			46,705			49,970			50,780			56,194
Expenses from Transactions
Employee expenses		10,615			11,731			13,175			14,310			15,566			16,826			18,250			18,130			17,816			18,592			20,045			21,258
Superannuation expenses
Superannuation interest costs		840			1,154			816			858			1,320			1,240			1,216			923			963			878			767			514
Other superannuation expenses		1,367			1,513			1,865			2,012			2,051			2,171			2,301			2,420			2,277			2,319			2,507			2,661
Other operating expenses		5,236			6,138			6,646			7,300			7,568			8,646			9,497			12,817			13,108			14,539			14,811			15,582
Depreciation and amortisation		1,678			1,764			1,851			2,496			2,501			2,507			2,777			2,902			3,060			3,137			2,921			3,068
Other interest expenses		174			180			347			599			803			1,125			1,659			1,940			2,200			2,328			2,220			1,722
Grant expenses		6,467			7,565			8,329			9,525			9,790			10,963			10,327			7,182			6,792			7,758			6,841			8,568
Total Expenses		26,378			30,046			33,030			37,099			39,599			43,479			46,028			46,312			46,217			49,551			50,112			53,373
Net Operating Balance		3,707			1,953			(1,606	)		(21	)		128			(1,466	)		(226	)		(4,558	)		488			420			668			2,821
OTHER KEY AGGREGATES
Purchases of non-financial assets		3,196			4,412			5,725			6,772			8,959			8,237			7,971			7,001			6,323			4,635			4,044			4,634
Net acquisition of non-financial assets		1,234			2,157			3,680			4,349			6,665			5,583			5,241			3,389			3,087			992			1,164			2,285
Fiscal Balance		2,472			(204	)		(5,286	)		(4,371	)		(6,537	)		(7,049	)		(5,467	)		(7,947	)		(2,599	)		(572	)		(497	)		536
Cash Surplus/(Deficit)		4,649			2,360			(4,924	)		(2,866	)		(5,341	)		(5,880	)		(4,951	)		(8,585	)		(3,213	)		(105	)		866			1,416
Net Worth		104,446			118,532			193,838			184,277			175,588			177,875			170,745			172,963			166,492			171,933			188,099			194,936
Net Debt		(23,203	)		(26,622	)		(22,586	)		(19,251	)		(13,354	)		(9,542	)		(5,720	)		2,399			5,208			5,749			653			(287	)
Borrowing		2,084			2,267			6,328			10,308			15,916			24,593			29,517			37,878			41,368			43,105			35,486			33,260
Borrowing (NFPS)		17,314			23,971			30,856			42,645			51,713			53,708			61,542			69,086			72,637			75,233			72,922			71,904

Note:

1. Numbers may not add due to rounding and bracketed numbers represent negative amounts.

Source: Report on State Finances for Queensland 2005-06 to 2016-17. (Numbers have been recast for changes to UPF presentation.)

134

Budget Strategy and Outlook 2018-19

9.5 Other General Government uniform presentation framework data

Data in the following tables is presented in accordance with the UPF.

9.5.1 Grants

Data presented in Tables 9.12 and 9.13 provide details of General Government Sector current and capital grant revenue and expenses.

Table 9.12 General Government Sector grant revenue¹

	2017-18 Est. Act. $ million		2018-19 Budget $ million
Current grant revenue
Current grants from the Commonwealth
General purpose grants		15,240		14,799
Specific purpose grants		7,970		7,987
Specific purpose grants for on-passing		3,019		2,918
Total current grants from the Commonwealth		26,229		25,704
Other contributions and grants		354		296
Total current grant revenue		26,583		26,001
Capital grant revenue
Capital grants from the Commonwealth
Specific purpose grants		1,826		1,659
Specific purpose grants for on-passing		—		5
Total capital grants from the Commonwealth		1,826		1,664
Other contributions and grants		72		36
Total capital grant revenue		1,898		1,700
Total grant revenue		28,481		27,701

Note:

1. Numbers may not add due to rounding.

135

Budget Strategy and Outlook 2018-19

Table 9.13 General Government Sector grant expenses¹

	2017-18 Est. Act. $ million		2018-19 Budget $ million
Current grant expense
Private and Not-for-profit sector		2,107		2,181
Private and Not-for-profit sector on-passing		2,553		2,687
Local Government		271		362
Local Government on-passing		473		241
Grants to other sectors of Government		947		2,169
Other		304		238
Total current grant expense		6,656		7,878
Capital grant expense
Private and Not-for-profit sector		237		458
Local Government		976		1,059
Local Government on-passing		—		5
Grants to other sectors of Government		16		13
Other		211		140
Total capital grant expense		1,440		1,674
Total grant expense		8,096		9,552

Note:

1. Numbers may not add due to rounding.

9.5.2 Dividends and income tax equivalent income

Table 9.14 provides details of the source of dividend and income tax equivalent income in the General Government Sector.

Table 9.14 General Government Sector dividend and income tax equivalent income¹

	2017-18 Est. Act. $ million		2018-19 Budget $ million
Dividend and Income Tax Equivalent income from PNFC sector		2,589		2,066
Dividend and Income Tax Equivalent income from PFC sector		97		151
Total Dividend and Income Tax Equivalent income		2,686		2,217

Note:

1. Numbers may not add due to rounding.

136

Budget Strategy and Outlook 2018-19

9.5.3 Expenses by function

Data presented in Table 9.15 provides details of General Government Sector expenses by function. The Australian Bureau of Statistics introduced a revised Classification of the Function of Government Australian Framework (COFOG-A) which has resulted in some re-classification of expenditure between purposes (see 9.6.1).

Table 9.15 General Government Sector expenses by function¹

	2017-18 Budget2 $ million		2017-18 Est. Act. $ million		2018-19 Budget $ million		2019-20 Projection $ million		2020-21 Projection $ million		2021-22 Projection $ million
General public services		5,115		5,419		5,368		5,412		5,287		5,259
Public order and safety		5,139		5,023		5,154		5,231		5,345		5,505
Economic affairs		2,160		2,221		2,241		2,165		2,114		2,017
Environmental protection		609		726		631		726		716		734
Housing and community amenities		295		224		275		373		364		268
Health		16,478		17,005		17,347		17,980		18,513		19,173
Recreation, culture and religion		1,458		1,535		842		741		763		746
Education		13,660		13,536		14,006		14,634		15,314		15,906
Social protection		5,056		5,425		5,865		5,439		5,452		5,930
Transport		5,752		5,633		5,861		5,975		5,961		6,042
Total Expenses		55,723		56,747		57,590		58,675		59,829		61,579

Notes:

1. Numbers may not add due to rounding.

2. 2017-18 Budget has been restated to comply with COFOG-A.

9.5.4 Purchases of non-financial assets by function

Data presented in Table 9.16 provides details of General Government Sector purchases of non-financial assets by function as per COFOG-A.

Table 9.16 General Government Sector purchases of non-financial assets by function¹

	2017-18 Budget2 $ million		2017-18 Est. Act. $ million		2018-19 Budget $ million		2019-20 Projection $ million		2020-21 Projection $ million		2021-22 Projection $ million
General public services		217		127		373		249		45		38
Public order and safety		552		415		555		522		265		245
Economic affairs		37		32		47		33		29		28
Environmental protection		28		58		67		29		19		20
Housing and community amenities		21		26		78		90		132		83
Health		984		598		1,099		1,046		907		623
Recreation, culture and religion		81		52		161		173		77		39
Education		643		589		711		993		599		664
Social protection		460		322		384		319		291		298
Transport		2,100		2,685		2,451		4,104		5,032		5,042
Total Purchases		5,123		4,905		5,927		7,557		7,396		7,081

Notes:

1. Numbers may not add due to rounding.

2. 2017-18 Budget has been restated to comply with COFOG-A.

137

Budget Strategy and Outlook 2018-19

9.5.5 Taxes

Data presented in Table 9.17 provides details of taxation revenue collected by the General Government Sector.

Table 9.17 General Government Sector taxes¹

	2017-18 Est. Act. $ million		2018-19 Budget $ million
Taxes on employers’ payroll and labour force		3,887		4,086
Taxes on property
Land taxes		1,183		1,313
Stamp duties on financial and capital transactions		3,090		3,214
Other		682		822
Taxes on the provision of goods and services
Taxes on gambling		1,194		1,307
Taxes on insurance		951		992
Taxes on use of goods and performance of activities
Motor vehicle taxes		2,297		2,421
Total Taxation Revenue		13,284		14,155

Note:

1. Numbers may not add due to rounding.

9.6 Contingent liabilities

Contingent liabilities represent items that are not included in the Budget as significant uncertainty exists as to whether the Government would sacrifice future economic benefits in respect of these items. Nevertheless, such contingencies need to be recognised and managed wherever possible in terms of their potential impact on the Government’s financial position in the future.

The State’s quantifiable and non-quantifiable contingent liabilities are detailed in the 2016-17 Report on State Finances – whole-of-government financial statements (note 43).

A summary of the State’s quantifiable contingent liabilities as at 30 June 2017 is provided in Table 9.18.

138

Budget Strategy and Outlook 2018-19

Table 9.18 Contingent liabilities

	2016-17 $ million
Nature of contingent liability
Guarantees and indemnities		10,421
Other		328
Total		10,748

9.7 Background and interpretation of uniform presentation framework

As mentioned in the introduction to this chapter, the UPF was reviewed in 2007 following the release of the AASB accounting standard, AASB 1049 Whole of Government and General Government Sector Financial Reporting.

This standard aims to harmonise GFS and GAAP with the objective of improving the clarity and transparency of government financial statements.

9.7.1 Accrual Government Finance Statistics framework

The GFS reporting framework, developed by the Australian Bureau of Statistics (ABS), is based on international statistics standards (the International Monetary Fund Manual on Government Finance Statistics and the United Nations System of National Accounts). This allows comprehensive assessments to be made of the economic impact of government.

The accrual GFS framework is based on an integrated recording of stocks and flows. Stocks refers to a unit’s holdings of assets and liabilities at a point in time, whilst flows represent the movement in the stock of assets and liabilities between two points in time. Flows comprise two separate types, transactions and other economic flows. Transactions come about as a result of mutually agreed interactions between units or within a single unit. Other economic flows would include revaluations and destruction or discovery of assets that do not result from a transaction.

In GFS operating statements, other economic flows, being outside of the control of government, are excluded and do not affect the net operating balance or fiscal balance.

Effective 1 July 2017, the ABS has updated its framework to incorporate changes outlined in the IMF’s latest manual. The ABS’s new framework (AGFS15) has required changes to the economic types of stocks and flows, and the classification of flows by function (classification of the functions of government – Australia, or COFOG-A).

In implementing AGFS15, Queensland Treasury has revised some of the classifications of operating cashflows in the Cashflow Statement. The 2016-17 Outcome and 2017-18 Budget have been restated to facilitate comparability. The key aggregates have not changed.

139

Budget Strategy and Outlook 2018-19

Adopting COFOG-A has resulted in some changes to the broad categories of function. As far as possible, the 2017-18 Budget has been restated to reflect these changes.

9.7.2 Generally Accepted Accounting Principles

In addition to the GFS framework, public sector entities were previously required to report at year end against AAS 31 Financial Reporting by Government, which meant complying with the Accounting Standards issued by the AASB.

9.7.3 Harmonisation under AASB 1049

This dual reporting regime caused confusion for financial report users and the Financial Reporting Council asked the AASB to develop a framework harmonising GAAP and GFS and to issue an Australian accounting standard for a single set of government reports.

In the development of the AASB 1049, the AASB adopted the following approaches:

• adoption of GAAP definition, recognition and measurement principles in almost all cases

• amending presentation requirements to encompass a comprehensive result that retains GAAP classification system but overlays it with a transaction and other economic flows classification system based on GFS

• expanding the disclosure requirements to incorporate key fiscal aggregates required by GFS.

9.7.4 Revisions to the Uniform Presentation Framework

Following the introduction of AASB 1049, the Australian, state and territory governments consider that the UPF will continue to be an important framework for ensuring comparability of financial information across jurisdictions. The UPF shall continue to apply to financial statements produced by government in budgets, mid-year budget updates and final budget outcome reports, whereas the accounting standard applies only to outcome reports.

Therefore, rather than replacing the UPF with the accounting standard, the framework was updated to align with AASB 1049. Australia, state and territory governments agreed that the updated framework would continue to provide a common core of comparable financial information in their budget papers and comparable data amongst jurisdictions while maintaining at least the current level of transparency.

Aligning the framework with the AASB 1049 was not intended to create a UPF that complies with all the reporting requirements of AASB 1049. For example, the UPF does not include the same level of detail in relation to disclosure requirements as AASB 1049. Instead, the revised UPF allows jurisdictions to utilise the framework as the base set of statements and add additional relevant information in order to comply with AASB 1049.

140

Budget Strategy and Outlook 2018-19

9.8 Sector classification

GFS data is presented by institutional sector, distinguishing between the General Government Sector and the PNFC sector.

Budget reporting focuses on the General Government Sector, which provides regulatory services, and goods and services of a non-market nature that are provided at less than cost or at no cost. These services are largely financed by general revenue (Australian Government grants and state taxation). This service comprises government departments, their commercialised business units/shared service providers and certain statutory bodies.

The PNFC Sector comprises bodies that provide mainly market goods and services that are of a non-regulatory and non-financial nature. PNFCs are financed through sales to consumers of their goods and services and may be supplemented by explicit government subsidy to satisfy community service obligations. In general, PNFCs are legally distinguishable from the governments that own them. Examples of PNFCs include the energy entities and Queensland Rail.

Together, the General Government Sector and the PNFC Sector comprise the Non-financial Public Sector.

Further discussion of the GFS framework of reporting, including definitions of GFS terms, can be obtained from the webpage of the ABS at www.abs.gov.au.

141

Budget Strategy and Outlook 2018-19

9.9 Reporting entities

The reporting entities included in the General Government and PNFC Sectors in these Budget papers are provided below.

9.9.1 General Government

Departments

Aboriginal and Torres Strait Islander Partnerships

Agriculture and Fisheries

Child Safety, Youth and Women

Communities, Disability Services and Seniors

Education

Electoral Commission of Queensland

Employment, Small Business and Training

Environment and Science

Housing and Public Works

Innovation, Tourism Industry Development and the Commonwealth Games

Justice and Attorney-General

Legislative Assembly

Local Government, Racing and Multicultural Affairs

Natural Resources, Mines and Energy

Office of Industrial Relations

Office of the Governor

Office of the Inspector-General Emergency Management

Office of the Ombudsman

Premier and Cabinet

Public Safety Business Agency

Public Service Commission

Queensland Audit Office

Queensland Corrective Services

Queensland Fire and Emergency Services

Queensland Health

Queensland Police Service

Queensland Treasury

Sport and Recreation

State Development, Manufacturing, Infrastructure and Planning

The Public Trustee of Queensland

Transport and Main Roads

Commercialised Business Units

Building and Asset Services

CITEC

Economic Development Queensland

QFleet

RoadTek

Shared Service Providers

Corporate Administration Agency

Queensland Shared Services

142

Budget Strategy and Outlook 2018-19

Statutory Authorities

Anti-Discrimination Commission

Board of the Queensland Museum

Crime and Corruption Commission

Cross River Rail Delivery Authority

Gold Coast 2018 Commonwealth Games Corporation

Gold Coast Waterways Authority

Hospital and Health Services

Cairns and Hinterland

Central Queensland

Central West

Children’s Health Queensland

Darling Downs

Gold Coast

Mackay

North West

South West

Sunshine Coast

Torres and Cape

Townsville

West Moreton

Wide Bay

Legal Aid Queensland

Library Board of Queensland

Motor Accident Insurance Commission

Nominal Defendant

Office of the Information Commissioner

Office of the Health Ombudsman

Prostitution Licensing Authority

Queensland Agricultural Training Colleges

Queensland Art Gallery Board of Trustees

Queensland Building and Construction Commission

Queensland Curriculum and Assessment Authority

Queensland Family and Child Commission

Queensland Mental Health Commission

Queensland Performing Arts Trust

Queensland Racing Integrity Commission

Queensland Reconstruction Authority

Queensland Rural and Industry Development Authority

Residential Tenancies Authority

South Bank Corporation

TAFE Queensland

The Council of the Queensland Institute of Medical Research

Tourism and Events Queensland

Trade and Investment Queensland

143

Budget Strategy and Outlook 2018-19

9.9.2 Public Non-financial Corporations

Brisbane Port Holdings Pty Ltd

CS Energy Limited

DBCT Holdings Pty Ltd

Energy Queensland

Far North Queensland Ports Corporation Limited

Gladstone Area Water Board

Gladstone Ports Corporation Limited

Mount Isa Water Board

North Queensland Bulk Ports Corporation Limited

Port of Townsville Limited

Powerlink Queensland

Queensland Bulk Water Supply Authority (Seqwater)

Queensland Lottery Corporation Pty Ltd

Queensland Rail

Queensland Treasury Holdings Pty Ltd

Stadiums Queensland

Stanwell Corporation Limited

SunWater Limited

144

Budget Strategy and Outlook 2018-19

Appendix A: Concessions statement

Context

The Queensland Government provides a wide range of concessions across a variety of services and products. In addition to targeted discounts, rebates and subsidies for Queenslanders based on eligibility criteria relating to factors such as age, income and special needs or disadvantage, broader concession arrangements are in place to reduce the price paid by all consumers in areas such as transport, electricity and water.

The majority of Queenslanders benefit from at least one concession and in many cases may benefit from multiple concessions each year. For example, aged pensioners are eligible for a number of Queensland Government concessions, such as discounts on their council rates, water, gas and electricity bills, vehicle registration fees as well as subsidised optometry and dental services.

Further information on the eligibility requirements and benefits of a range of Government concessions can be found at: https://campaigns.premiers.qld.gov.au/smart-savings/.

Focus

This statement highlights the cost and nature of concessions provided by the Queensland Government. It covers both concessions that are direct Budget outlays (for example, fee subsidy payments), and concessions that are revenue foregone through fees and charges that are set at a lower rate than applies to the wider community or, in the case of broader concessions, the full cost of service provision.

Sections A.2 and A.3 set out the individual concessions by agency and government-owned corporation respectively, sorted in descending order. The total value of these concessions is estimated to be $5.584 billion in 2018-19. This represents a significant Government and taxpayer commitment to improving the accessibility and affordability of a diverse range of services, and reducing the price paid by consumers of those services to ease cost of living pressures.

Explanation of scope

For the purposes of this document, concessions include:

• discounts, rebates and subsidies to improve access to, and the affordability of, a range of services for individuals or families based on eligibility criteria relating to factors such as age, income and special needs or disadvantage

• concessional prices for Government services, where the price charged to all consumers is less than the full cost of service provision.

145

Budget Strategy and Outlook 2018-19

Both General Government and Public Non-financial Corporations (PNFC) Sector concessions are included. Where a payment is made from a General Government Sector agency to a PNFC entity for a concession arrangement, the expenditure is reported against the General Government Sector agency only to avoid double counting. To be included in this statement, concessions must meet the minimum materiality threshold of estimated expenditure or revenue foregone of $50,000 in 2018-19.

Varying methods have been used to estimate the cost of concessions depending on the nature of the concessions, including:

• direct Budget outlay cost (for example, direct subsidy or rebate payments or Government’s contribution in the case of items such as rental subsidies)

• revenue foregone (for example, concessional fees and charges)

• cost of goods and services provided.

For the purposes of illustration, the document often uses averages to demonstrate the potential value of the concession to consumers. However, averages are not reflective of individual circumstances, meaning the actual dollar value of the concession to consumers may vary from person to person.

The Concessions Statement does not include Tax Expenditures (for example, tax exemptions, reduced tax rates, tax rebates and deductions). Information on Tax Expenditures can be found in Appendix B – Tax expenditure statement.

146

Budget Strategy and Outlook 2018-19

A.1 Concessions summary

Table A.1.1 Concession by entity¹

Concession by entity	2017-18 Est. Act. $ million		2018-19 Estimate $ million
Agency
Department of Agriculture and Fisheries		32.4		43.6
Department of Communities, Disability Services and Seniors		366.3		383.8
Department of Education		124.8		131.6
Department of Employment, Small Business and Training		429.7		453.1
Department of Environment and Science		8.8		7.1
Department of Housing and Public Works		450.7		461.6
Department of Justice and Attorney-General		91.2		93.1
Department of Natural Resources, Mines and Energy		825.8		795.6
Department of Transport and Main Roads		2,601.1		2,796.7
Queensland Fire and Emergency Services		9.7		10.2
Queensland Health		295.5		281.7
Total Agency		5,236.1		5,458.1
Government-owned corporations
Energy Queensland		22.0		22.9
Far North Queensland Ports Corporation Limited		0.8		0.8
Gladstone Ports Corporation Limited		55.5		43.1
North Queensland Bulk Ports Corporation Limited		1.6		1.7
Port of Townsville Limited		5.7		5.8
Queensland Rail Limited		1.7		1.9
SunWater Limited		48.5		49.4
Total Government-owned corporations		135.8		125.6
Total all entities		5,371.9		5,583.7

Note:

1. Numbers may not add due to rounding.

147

Budget Strategy and Outlook 2018-19

A.2 Concessions by agency

Table A.2.1 Department of Agriculture and Fisheries

Concession	2017-18 Est. Act. $ million		2018-19 Estimate $ million
Primary Industry Productivity Enhancement Scheme (PIPES)		21.2		20.3
Drought Relief Assistance Scheme1		10.0		20.0
Vessel Tracking Rebate Scheme2		0.1		1.7
Farm Management Grant3		1.1		1.6
Total		32.4		43.6

Notes:

1. The 2017-18 estimated actual is lower than previously anticipated due to improved climatic conditions across the State. In 2018-19 the Government is providing funding of up to $20 million, held centrally, for the continuation of the Drought Relief Assistance Scheme.

2. The variance is due to the commencement of the scheme (June 2018) and an anticipated increased take up of the scheme during 2018-19.

3. The variance is due to an anticipated increased take up of the grants in 2018-19, as a result of the expansion of a targeted communications strategy.

Primary Industry Productivity Enhancement Scheme (PIPES)

PIPES is administered by the Queensland Rural and Industry Development Authority (QRIDA) and provides concessional rates of interest on loans to eligible primary producers in need of financial assistance. First Start Loans and Sustainability Loans of up to $2 million and $1.3 million respectively support applicants to enter primary production and to improve productivity and sustainability. The average concessional interest rate for new lending is 3.24%. The amounts shown in the above table represent the fair values of the interest rate concessions pertaining to loans issued in each of the financial years shown.

Drought Relief Assistance Scheme

The Drought Relief Assistance Scheme provides freight subsidies and emergency water infrastructure rebates to support producers and communities that have been affected by drought conditions across the State. Freight subsidies of up to 50% and emergency water infrastructure rebates of up to 50% are available to eligible applicants, up to a maximum of between $20,000 and $40,000 per property, per financial year.

Vessel Tracking Rebate Scheme

The Queensland Sustainable Fisheries Strategy 2017-2027 requires vessel tracking on all commercial fishing boats by 2020 to assist in the management of Queensland Fisheries. This initiative is designed to assist commercial fishers by providing rebates up to prescribed amounts, to offset the cost of purchasing and installing approved vessel tracking units.

148

Budget Strategy and Outlook 2018-19

Farm Management Grant

The Farm Management Grant aims to assist eligible Queensland primary producers, or their relatives, to offset the costs of professional advice associated with succession planning. The grant provides rebates of up to 50% of the amount paid for professional advice, up to a maximum of $2,500 per financial year.

Table A.2.2 Department of Communities, Disability Services and Seniors

Concession	2017-18 Est. Act. $ million		2018-19 Estimate $ million
Electricity Rebate Scheme1,2		181.0		195.5
Electricity Asset Ownership Dividend		100.0		100.0
Pensioner Rate Subsidy Scheme		53.0		53.6
South East Queensland Pensioner Water Subsidy Scheme		18.0		18.2
Home Energy Emergency Assistance Scheme		8.1		10.0
Electricity Life Support Concession Scheme2		2.3		2.3
Reticulated Natural Gas Rebate Scheme		2.5		2.6
Medical Cooling and Heating Electricity Concession Scheme2		1.5		1.6
Total		366.3		383.8

Notes:

1. The variance is due to the estimated growth in recipients, particularly Health Care Card holders.

2. Electricity price linked rebates are adjusted annually according to the Queensland Competition Authority’s (QCA) price determination for general household electricity tariff (Tariff 11). For 2018-19, the QCA determined Tariff 11 will decrease by 1.3%. However, existing rebate values will not be decreased and will continue to apply in 2018-19.

Electricity Rebate Scheme

The Electricity Rebate Scheme provides a rebate of up to approximately $341 per annum, to assist with the cost of domestic electricity supply to the home of eligible holders of a Pensioner Concession Card, a Queensland Seniors Card or a Department of Veterans’ Affairs Gold Card (and receive a War Widow/er Pension or special rate Totally or Permanently Incapacitated Pension).

Additionally, the rebate was extended to Commonwealth Health Care Card Holders and asylum seekers from 1 January 2017, allowing an estimated 157,000 additional Queensland families to access the rebate.

149

Budget Strategy and Outlook 2018-19

Electricity Asset Ownership Dividend

The Electricity Asset Ownership Dividend is providing Queensland households with a $50 electricity rebate in 2017-18 and 2018-19. This initiative is funded from the dividends of Queensland’s government-owned corporations and forms part of the $2 billion Affordable Energy Plan.

Pensioner Rate Subsidy Scheme

The Pensioner Rate Subsidy Scheme offers a 20% subsidy (up to a maximum of $200 per annum) to lessen the impact of local government rates and charges on pensioners, thereby assisting them to continue to live in their own homes.

South East Queensland Pensioner Water Subsidy Scheme

The South East Queensland (SEQ) Pensioner Water Subsidy Scheme provides a subsidy of up to $120 per annum to eligible pensioner property owners in the SEQ Water Grid to lessen the impact of water prices. This subsidy is in addition to the Pensioner Rate Subsidy Scheme.

Home Energy Emergency Assistance Scheme

The Home Energy Emergency Assistance Scheme provides emergency assistance of up to $720 once in a two year period to assist low income households experiencing a short-term financial crisis and who are unable to pay their current electricity and/or reticulated natural gas account. It is not a requirement for the claimant to hold a concession card.

Electricity Life Support Concession Scheme

The Electricity Life Support Concession Scheme is aimed at assisting seriously ill people who use home based life support systems by providing a rebate of up to approximately $694 per annum for users of oxygen concentrators and a rebate of up to approximately $465 per annum for users of kidney dialysis machines to meet their electricity costs. The concession is paid quarterly and is subject to the patient being medically assessed in accordance with Queensland Health eligibility criteria.

Reticulated Natural Gas Rebate Scheme

The Reticulated Natural Gas Rebate Scheme provides a rebate of up to approximately $73 per annum to assist with the cost of reticulated natural gas supplied to the home of eligible holders of a Pensioner Concession Card, Queensland Seniors Card or a Department of Veterans’ Affairs Gold Card (and receive the War Widow/er Pension or special rate Totally or Permanently Incapacitated Pension).

Medical Cooling and Heating Electricity Concession Scheme

The Medical Cooling and Heating Electricity Concession Scheme provides a rebate of up to approximately $341 per annum for eligible concession card holders with a medical condition who have dependence on air conditioning to regulate body temperature.

150

Budget Strategy and Outlook 2018-19

Table A.2.3 Department of Education

Concession	2017-18 Est. Act. $ million		2018-19 Estimate $ million
Textbook and Resource Allowance1		57.9		61.2
School Transport Assistance for Students with Disabilities1		40.7		43.7
Living Away from Home Allowance Scheme2		8.3		8.4
Tuition Fee Exemptions/Waivers - Dependants of International Students2		6.8		7.0
Non-Government Schools Transport Assistance Scheme2		6.0		6.2
Dalby State High School - Bunya Campus Residential Facility		2.7		2.7
Spinifex State College - Mount Isa Student Residential Facility		1.1		1.1
Distance Education - Information and Communication Technology Subsidy Scheme		0.8		0.8
Distance Education - Non-Government Student Fee Subsidy		0.5		0.5
Total		124.8		131.6

Notes:

1. The variance is due to a combination of indexation and student enrolment growth.

2. The variance is due to indexation.

Textbook and Resource Allowance

The Textbook and Resource Allowance is available for all parents/caregivers of secondary school age students attending State and approved non-government schools, to assist with the cost of textbooks and learning resources. Parents generally sign over this allowance to the school to reduce the fees associated with participating in the school’s textbook and resource scheme. In 2018, the rates per annum are $125 for students in Years 7 to 10 and $271 for students in Years 11 and 12.

School Transport Assistance for Students with Disabilities

School Transport Assistance for Students with Disabilities is provided for eligible students to attend State school programs that meet their individual education needs. This transport assistance includes the provision of taxis or specialised contracted minibuses, payment of fares on regular buses or trains, or an allowance for parents who drive their children to school. The benefit level is to a maximum of $400 per week, per student, however in exceptional circumstances higher amounts may be approved. A separate scheme is in place for students with disabilities attending non-government schools (refer ‘Non-Government Schools Transport Assistance Scheme’).

The Department of Education is working with the Department of Transport and Main Roads (DTMR) to establish a long-term solution for the delivery of school transport assistance for students with disabilities under the National Disability Insurance Scheme (NDIS).

151

Budget Strategy and Outlook 2018-19

Living Away from Home Allowance Scheme

The Living Away from Home Allowance Scheme provides financial assistance to support Queensland families and targets geographically isolated families. The scheme meets the costs of children who are required to live away from home to attend schools. This concession is available to Queensland students attending both state and non-government schools. The benefits available for eligible students in 2018 are:

• Remote Area Allowance – assistance of $2,354 per annum is available to students attending campuses of the Australian Agricultural College Corporation in lieu of Year 11 and 12.

• Remote Area Tuition Allowance – primary students up to $3,744 per annum and secondary students up to $5,391 per annum.

• Remote Area Travel Allowance – available where the distance from the family home to the boarding location is at least 50km. Benefit levels depend on the distance travelled, and range from $142 to a maximum of $1,727 per annum.

• Remote Area Disability Supplement – available to students with disabilities who incur additional costs associated with living away from home to attend school. Benefits are up to $7,659 per student per annum.

Tuition Fee Exemptions/Waivers – Dependants of International Students

This concession is available for dependants of international students. It allows students who meet the approved exemption criteria, and wish to enrol their child in Preparatory Year (Prep) to Year 12 of schooling, to be exempt from paying dependant tuition fees. The exemption only applies for the duration of the main temporary visa holder’s (parent) course of study in Queensland. A dependant student (Prep to Year 12) of a temporary visa holder may also be eligible for a tuition fee waiver in certain circumstances, including financial hardship. The estimated average amount exempted or waived per student is $7,818 for the 2018-19 financial year.

Non-Government Schools Transport Assistance Scheme

The Non-Government Schools Transport Assistance Scheme assists families by providing funding towards the transport costs of students attending non-government schools outside of the Brisbane City Council area. Under the scheme, reimbursement is provided for transport expenses above a set weekly threshold amount. In 2018, the threshold is $33 per week for families, or $25 for families with a Health Care Card, Pensioner or Department of Veterans’ Affairs Pensioner Card.

The program also assists families of students with disabilities who attend a non-government school. The level of assistance provided is dependent on the type of transport needed and travel assistance already provided by DTMR. For families using taxis, assistance is capped at $300 per week.

The Department of Education is working with DTMR to establish a long-term solution for the delivery of school transport assistance for students with disabilities under the NDIS.

152

Budget Strategy and Outlook 2018-19

Dalby State High School – Bunya Campus Residential Facility

The Dalby State High School – Bunya Campus Residential Facility provides affordable residential accommodation for secondary school students in a boarding facility. The concession particularly targets secondary school students from rural and remote communities, however, any secondary age student is eligible. Students accommodated at the residential facility are enrolled at Dalby State High School and participate in agricultural education programs.

Spinifex State College – Mount Isa Student Residential Facility

The Spinifex State College – Mount Isa Student Residential Facility provides an affordable residential facility in Mount Isa for students from the north-western area of the State whose home community does not provide secondary schooling. The funding meets the cost of wages for the residential college, increasing the affordability of the accommodation rates charged to students.

Distance Education – Information and Communication Technology Subsidy Scheme

The Distance Education – Information and Communication Technology Subsidy Scheme provides assistance to students enrolled in a school of distance education that are geographically isolated or in the medical category.

The scheme provides $250 per annum to assist with purchasing, replacing or upgrading computer hardware for students in the distance/geographically isolated and medical categories, and $500 per annum to assist students in the distance/geographically isolated category to meet the costs of broadband internet access and download charges for the home classroom. Eligible students also receive access to free software licences.

Distance Education – Non-Government Student Fee Subsidy

The Distance Education – Non-Government Student Fee Subsidy is available to students who are enrolled in non-government schools and also choose to access distance education subjects. It provides an average annual subsidy of approximately $1,343 per distance education subject enrolment.

This subsidises approximately 50% of the total average cost per annum of providing a subject through distance education for non-government school students. The concession contributes towards the State continuing to make distance education available to non-government schools, ensuring the widest possible subject choice for students, while recovering a proportion of the teaching and overhead costs.

153

Budget Strategy and Outlook 2018-19

Table A.2.4 Department of Employment, Small Business and Training

Concession	2017-18 Est. Act. $ million		2018-19 Estimate $ million
User Choice - Apprentice and Trainee Training Subsidy1		191.5		202.0
Vocation Education and Training (VET) - Certificate 3 Guarantee Tuition Fee Subsidy1		172.8		182.1
VET - Higher Level Skills Tuition Fee Subsidy1		63.4		67.0
Travel and Accommodation Subsidy		2.0		2.0
Total		429.7		453.1

Note:

1. The variance is due to the anticipated increase in activity due to the demand driven nature of the programs.

User Choice – Apprentice and Trainee Training Subsidy

The User Choice – Apprentice and Trainee Training Subsidy program provides government funding towards the costs of training and assessment for eligible Queensland apprentices and trainees or complementary pathways leading to apprenticeship and traineeship outcomes. The subsidy is available to public and private registered training organisations (pre-approved as pre-qualified suppliers) to subsidise tuition fees to reduce the cost of required accredited, entry level training for apprentices and trainees. The program provides greater flexibility for apprentices, trainees and their employers to select a preferred registered training organisation and to negotiate the type of training to meet their specific needs.

The value of this subsidy for each qualification ranges from $1,140 to $50,720 depending on the eligibility and qualification subsidised. The average subsidy value is $9,007.

Vocation Education and Training (VET) – Certificate 3 Guarantee Tuition Fee Subsidy

The Vocational Education and Training (VET) Certificate 3 Guarantee Tuition Fee Subsidy provides a government subsidy to allow eligible Queenslanders to obtain their first post-school Certificate III qualification to help them gain a job or to improve their employment status. The subsidy is available to private and public registered training organisations (pre-approved as pre-qualified suppliers) to subsidise tuition fees paid by students undertaking eligible vocation education and training qualifications (primarily Certificate III qualifications).

The value of this subsidy for each qualification ranges from $440 to $6,260 depending on the eligibility and qualification subsidised. The average subsidy value is $2,836.

154

Budget Strategy and Outlook 2018-19

VET – Higher Level Skills Tuition Fee Subsidy

The VET Higher Level Skills Tuition Fee Subsidy provides a government subsidy to eligible students and employers to undertake a priority Certificate IV, diploma or advanced diploma or industry endorsed skill set. This program will help individuals gain employment in a critical occupation, career advancement in a priority industry or transition to university to continue their studies. The subsidy is available to private and public registered training organisations (pre-approved as pre-qualified suppliers) to subsidise tuition fees paid by students undertaking eligible vocational education and training qualifications at Certificate IV or above.

The value of this subsidy for each qualification ranges from $1,105 to $8,190 depending on the eligibility and qualification subsidised. The average subsidy value is $4,078.

Travel and Accommodation Subsidy

The Travel and Accommodation Subsidy provides financial assistance to Queensland apprentices and trainees for travel expenses incurred in attending off the job training at a registered training organisation. To be eligible, apprentices must attend the closest registered training organisation that offers the required qualification and travel a minimum of 100 kilometres (km) return from their usual place of residence to the registered training organisation. The subsidy provides for:

• return land travel to the registered training organisation of 15 cents per km for distances between 100-649 km, increasing to 19 cents per km for distances between 650-1,400 km

• cost of ferry travel if necessary

• a return economy air ticket to the location of the registered training organisation if necessary

• accommodation assistance of $28 per day for overnight stay within Queensland and $68 for interstate travellers, if it is necessary to live away from their usual place of residence to attend training.

155

Budget Strategy and Outlook 2018-19

Table A.2.5 Department of Environment and Science

Concession	2017-18 Est. Act. $ million		2018-19 Estimate $ million
Queensland Performing Arts Trust - Arts concessional entry fees		2.0		2.0
Tour fee and access permit concessions		1.6		1.6
Queensland Museum - Arts concessional entry fees		1.5		1.5
Queensland Performing Arts Trust - Venue hire rebates		0.6		0.6
State Library of Queensland - Venue hire rebates		0.5		0.5
Arts Queensland - Discount on property lease rentals1		0.7		0.4
Arts Queensland - Venue hire rebates		0.3		0.3
Queensland Art Gallery - Arts concessional entry fees2		1.6		0.2
Total		8.8		7.1

Notes:

1. The decrease from 2017-18 estimated actual to 2018-19 budget is mainly due to a reduction in the market rental assessment for Judith Wright Centre of Contemporary Arts budgeting a 5% vacancy rate in 2018-19 and the planned six months closure of Centre of Contemporary Arts, Cairns for renovation.

2. Decrease in concessions in 2018-19 is due to the major exhibition in 2018-19 (The 9th Asia Pacific Triennial of Contemporary Art) being a free exhibition. Overall concession in previous year was higher as a result of better than expected attendance at Marvel: Creating the Cinematic Universe and a greater than expected proportion of concession holders.

Queensland Performing Arts Trust – Arts concessional entry fees

Concessional entry fees are offered for specific Queensland Performing Arts Trust productions and to provide support for other not-for-profit theatre companies to enable tickets to be sold at concessional prices. The level of concession provided varies depending on the number and size of events being held each year.

Tour fee and access permit concessions

Tour fee, access permit and camping fee concessions are available in specified protected areas including David Fleay Wildlife Park, Mon Repos Conservation Park, St Helena Island National Park, Walk-About Creek Wildlife Centre, Fort Lytton National Park, Cooloola Recreation Area, Moreton Island and Fraser Island.

Queensland Museum – Arts concessional entry fees

Queensland Museum provides concessional entry fees to seniors, students, children, families and a variety of concession card holders for ticketed exhibitions at Queensland Museum and Sciencentre and for general entry to Cobb & Co Museum Toowoomba, The Workshops Rail Museum Ipswich and Museum of Tropical Queensland Townsville. Concessions are also provided to targeted groups, such as schools, to encourage visits to museums. The level of concession provided varies depending on the venue and the event.

156

Budget Strategy and Outlook 2018-19

Queensland Performing Arts Trust – Venue hire rebates

Venue hire rebates are offered to Government funded cultural organisations, charitable organisations, government departments and educational institutions. Organisations currently receiving discounts are Queensland Symphony Orchestra, Opera Queensland, Queensland Theatre Company and Queensland Ballet.

State Library of Queensland – Venue hire rebates

State Library of Queensland provides venue hire concessions to targeted community and non-profit groups including cultural and charitable organisations and educational institutions in order to support events and programs directly linked to State Library of Queensland’s services, programs and activities.

Arts Queensland – Discount on property lease rentals

Property lease rentals are provided to arts and cultural organisations at a discount from market rental rates at the Judith Wright Centre of Contemporary Arts and the Cairns Centre of Contemporary Arts. Discounts range from 20% to 100% of the market rate (dependent on location) of the commercial office space. Further discounts on specialist rehearsal and gallery space are given as negotiated at the time of entering the lease and dependent on the individual arts or cultural organisation and its funding.

Arts Queensland – Venue hire rebates

Venue hire rebates support Queensland Government funded arts organisations and professional artists to develop and present new work at the Judith Wright Centre of Contemporary Arts and the Cairns Centre of Contemporary Arts.

Queensland Art Gallery – Arts concessional entry fees

Queensland Art Gallery’s ticket prices are set to ensure that they are affordable and to maximise attendance, with additional concessions provided to seniors, students, children, families and a variety of concession card holders. The purpose of the Queensland Art Gallery Arts concessional entry fees concession is to contribute to the cultural, social and intellectual development of Queenslanders, and encourage diverse audiences.

157

Budget Strategy and Outlook 2018-19

Table A.2.6 Department of Housing and Public Works

Concession	2017-18 Est. Act. $ million		2018-19 Estimate $ million
Government managed housing rental rebate1		396.4		406.1
National Rental Affordability Scheme2		28.4		29.3
Home Assist Secure2		19.0		19.0
Non-residential buildings - subsidised rents		5.6		5.9
Rental Bond Loans		1.0		1.0
Queensland Recreation Centres - Concessional usage rates		0.3		0.3
Non-government managed housing3		—		—
Total		450.7		461.6

Notes:

1. The variance is primarily due to lower forecast growth in tenant rental income.

2. The variance is due to the expected increase in the indexation rate for the 2018-19 scheme.

3. The value of this concession arrangement cannot be easily quantified.

Government managed housing rental rebate

The Government managed housing rental rebate targets low income families and individuals and represents the difference between the rents that would be payable in the private market and rent that is charged by Government based on household income.

Assistance is provided to approximately 53,000 households. The estimated average yearly subsidy per household for 2018-19 is $7,623.

National Rental Affordability Scheme

The National Rental Affordability Scheme (NRAS) is an Australian Government initiative, delivered in partnership with the Queensland Government, to increase the supply of new affordable rental housing. The scheme provides financial incentives to investors to build well located dwellings and rent them to eligible low to moderate income households, at a discounted rate at least 20% below market rent.

Under the scheme, the concession to the tenant is provided by the property owner. Due to the nature of the arrangement, the overall value of the concession to the tenant cannot be quantified. In 2018-19, the Government has allocated $29.3 million for the payment of financial incentives to NRAS investors who are then required to discount rents to tenants.

158

Budget Strategy and Outlook 2018-19

Home Assist Secure

Home Assist Secure provides free safety related information and referrals, and subsidised assistance to eligible clients unable to undertake or pay for critical maintenance services without assistance. To be considered for assistance, home owners or tenants over the age of 60 or of any age with a disability must hold a Pensioner Concession Card and be unable to complete the work themselves. In addition, they must be unable to access assistance from other services. Subsidised assistance can be undertaken for maintenance, repairs and minor modifications where the total cost for any one job or service does not exceed $1,500. Labour costs (up to $500 per household per year) for the assistance provided are subsidised by Home Assist Secure while the balance of the costs (including all materials) are met by the client.

Home Assist Secure targets home owners and those in rental housing who are over 60 years of age or have a disability, and who require assistance to remain living in their home. In 2018-19, $19 million in grants to Home Assist Secure providers will be issued to ensure the ongoing delivery of assistance to those in greatest need. It is estimated that over 47,500 households will be assisted.

Non-residential buildings – subsidised rents

Accommodation is provided to 40 community, education, arts and not-for-profit organisations in Government owned non-residential buildings. Tenures for the occupancies are by way of leases, licences or month to month arrangements. Rents paid by the organisations are often below independently assessed market rent levels. Subsidised rental arrangements are provided to 24 properties comprising a total floor area of approximately 25,038 square metres. The total subsidy is calculated by deducting the actual amount paid by the occupants from the total estimated annual market rent for the office space.

Rental Bond Loans

The Government provides interest-free rental bond loans equivalent to a maximum amount of four weeks rent to people who cannot afford to pay a full bond to move into private rental accommodation; reducing the need for more costly, subsidised housing assistance. The interest-free bond loan targets low-income households and can stabilise tenancies, prevent households from entering the cycle of homelessness and engaging with fringe, high interest credit providers. The concession represents the interest saving for the client on the bond loan. In 2018-19, $27.7 million in bond loans will be advanced to an estimated 24,000 clients.

Queensland Recreation Centres – Concessional usage rates

Concessional usage rates are offered to students and children 17 years and under, for the use of Queensland Recreation Centres at Currimundi and Tallebudgera. These concessional rates provide a discount of between 3.25% to 18% of the full charge to approximately 34,000 recipients.

159

Budget Strategy and Outlook 2018-19

Non-government managed housing

The Government provides contributions to social housing providers, including capital grants, granted land or properties, or recurrent funding, to assist in increasing housing affordability and access to social housing. Due to the nature of the arrangement, the overall value of the concession provided by the Government cannot be easily quantified.

Rents charged for social housing managed by the providers are based on 25% of a household’s assessable income or the market rent, whichever is lower, which may substantially reduce accommodation costs for eligible individuals and families.

Table A.2.7 Department of Justice and Attorney-General

Concession	2017-18 Est. Act. $ million		2018-19 Estimate $ million
Public Trustee of Queensland - Concessions		36.2		37.7
Court Services - Civil Court		22.8		24.2
Queensland Civil and Administrative Tribunal1		19.4		18.7
Blue Card - Volunteer Applicants		10.6		10.3
Body Corporate and Community Management - Dispute Resolution		2.2		2.2
Total		91.2		93.1

Note:

1. The variance is mainly due to the decrease in the Tribunal’s rental expenses in 2018-19.

Public Trustee of Queensland – Concessions

The Public Trustee of Queensland (the Public Trustee) is a self-funding organisation and uses a scale of fees which is designed to reflect a fair cost for the services provided.

The Public Trustee has established a safety net limit on the annual fees payable by certain clients which provides for a rebate of fees for some clients with limited assets. The rebate is applied to clients such as financial administration clients with impaired capacity, or estate administration clients of limited means. The Public Trustee also provides Will making services at no cost for all Queenslanders.

In addition, the Public Trustee provides funding to the Public Guardian and financial assistance under the Civil Law Legal Aid Scheme administered by Legal Aid Queensland, to enable these organisations to provide services to the people of Queensland.

160

Budget Strategy and Outlook 2018-19

Court Services – Civil Court

The Supreme, District and Magistrates Courts hear civil disputes between two or more parties (people or organisations) where one party sues the other, usually to obtain compensation, or seek some other remedy. These disputes may involve anything from defamation to outstanding debts. Civil Court Fees are prescribed under the Uniform Civil Procedure (Fees) Regulation 2009 for proceedings commenced in civil matters and are set below full cost recovery to ensure that civil remedies are accessible to all Queenslanders.

Queensland Civil and Administrative Tribunal

The Queensland Civil and Administrative Tribunal (QCAT) is an independent tribunal which makes decisions and resolves disputes across a wide range of jurisdictions for the community. Fees for these services are below cost recovery to ensure services are accessible, fair and inexpensive. QCAT provides human rights services with no application fees for matters in guardianship and administration of adults, children and young people and anti-discrimination.

Blue Card – Volunteer Applicants

Individuals providing child-related services or conducting child-related activities in regulated service environments are required to undergo an assessment of their police and relevant disciplinary information, and if approved, are issued with a blue card. A blue card is valid for three years unless cancelled or suspended earlier. The application fee for a blue card is $90.25 (as at 1 July 2018). Since the inception of the blue card system in 2001, Government has met the cost of blue card assessment for volunteer applicants.

Body Corporate and Community Management – Dispute Resolution

The Office of the Commissioner for Body Corporate and Community Management provides a dispute resolution service to parties unable to resolve disputes themselves. The service consists of conciliation, with the aim of achieving a voluntary agreement, and adjudication, which results in a formal order. The service is delivered below full cost recovery so as to not restrict access to justice due to affordability reasons.

161

Budget Strategy and Outlook 2018-19

Table A.2.8 Department of Natural Resources, Mines and Energy

Concession	2017-18 Est. Act. $ million		2018-19 Estimate $ million
Energy Queensland - Uniform Tariff Policy (excluding Isolated Systems)1		441.1		413.5
Energy Queensland - Uniform Tariff Policy for Isolated Systems		47.1		48.3
Powering Queensland Plan - Electricity Affordability Package		287.4		284.2
Affordable Energy Plan - Solar & Storage Interest Free Loans Scheme2		—		13.7
Affordable Energy Plan - Energy Savers Program		—		4.0
Affordable Energy Plan - Energy Savvy Families3		0.2		3.8
Affordable Energy Plan - Energy Efficiency Appliance Rebate4		19.8		—
Extending existing drought relief arrangements - Electricity Charge Scheme5		12.0		10.4
Cloncurry Pipeline Water Supply Subsidy		6.1		6.2
Extending existing drought relief arrangements - Water Licence Fee Waiver and Land Rental Rebates		4.2		4.2
Origin Energy - Uniform Tariff Policy		2.7		2.8
SunWater Rural Irrigation Water Price Subsidy6		3.1		2.4
Seqwater Bulk Water Rural Irrigation Water Price Subsidy		2.1		2.1
Total		825.8		795.6

Notes:

1. The variance between 2017-18 estimated actual and 2018-19 budget is due to Energy Queensland assuming a lower Ergon Energy distribution charge relative to the Energex charges. This is consistent with the Australian Energy Regulator’s decision for the two distribution businesses.

2. This concession will commence in June 2018.

3. This initiative provides digital electricity meters to eligible low-income families in regional Queensland to help them gain a greater understanding of when and how they use their electricity.

4. The program commenced 1 January 2018 and closes 3 June 2018.

5. The concessions can vary depending on the shires that are drought declared and the number of eligible customers.

6. The decrease in the Community Service Obligation (CSO) for 2018-19 is largely due to the price path arrangements leading to a reduction in the concession required.

Energy Queensland – Uniform Tariff Policy (excluding Isolated Systems)

The Energy Queensland – Uniform Tariff Policy (excluding Isolated Systems) ensures that, where possible, all Queensland non-market electricity customers of a similar type pay a similar price for electricity regardless of where they live. As the notified prices do not reflect the full cost of electricity supply for most remote and regional Queenslanders, a subsidy is provided. The community service obligation (CSO) payment to the regional retailer Energy Queensland covers the difference between the revenue earned by charging customers notified prices and the actual costs in the regional areas (due to differences in network costs and energy losses).

162

Budget Strategy and Outlook 2018-19

Energy Queensland – Uniform Tariff Policy for Isolated Systems

The Energy Queensland – Uniform Tariff Policy for Isolated Systems ensures that, where possible, all Queensland non-market electricity customers of a similar type pay a similar price for electricity regardless of where they live. Energy Queensland owns and operates 33 isolated power stations which supply electricity to remote and isolated Queensland communities. Energy Queensland retails electricity to these customers at the notified prices, and the Government provides funding to the retailer to cover the difference between the revenue earned and the cost of supplying electricity to these customers.

Powering Queensland Plan – Electricity Affordability Package

The Powering Queensland Plan provided one-off funding in 2016-17 of $771 million to support the stabilisation of electricity prices for Queensland consumers, by funding the removal of costs of the Solar Bonus Scheme from electricity prices for three years from 1 July 2017 and directing Energy Queensland to remove costs from network charges. This will place downward pressure on electricity prices for the typical household, and provide an average saving of $51 for households and $90 for small businesses, compared with the increase which would have occurred without Government intervention. It is estimated that the benefit to Queenslanders in 2018-19 as a result of this measure will be $284.2 million.

Affordable Energy Plan – Solar & Storage Interest Free Loans Scheme

This scheme is designed to assist households and small businesses address electricity affordability by providing upfront capital to those who otherwise would not have access to funds to invest in rooftop solar and battery energy storage technology.

Affordable Energy Plan – Energy Savers Program

The $20 million Business Energy Savers Program, an initiative under the Affordable Energy Plan, provides free energy audits for agricultural customers and large business customers, and co-contributions to fund energy efficiency upgrades. It includes a 3 year extension of the existing Energy Savers Plus Program (for agricultural businesses) and the Large Customer Adjustment Program (for large electricity users).

Under the expanded Energy Savers Plus Program, 200 additional audits for agricultural customers will be completed. In addition to this, co-contribution grants of up to $20,000 will be made available to assist businesses in implementing the recommendations from the audit.

Under the expanded Large Customer Adjustment Program an additional 30 audits of large customers will be completed and co-contributions capped at up to $250,000 will be made available to help encourage the business to implement the audit recommendations.

Affordable Energy Plan – Energy Savvy Families

Under this plan, $4 million has been provided over two years to enable the provision of digital electricity meters as well as providing educational material and information to low income families in regional Queensland to help them better understand and manage their energy use.

163

Budget Strategy and Outlook 2018-19

Affordable Energy Plan – Energy Efficiency Appliance Rebate

The program was designed to assist Queensland households improve their energy efficiency through providing a rebate to help purchase high energy efficient appliances. The program commenced on 1 January 2018 and closed 3 June 2018.

The rebates applied to purchases on or after 1 January 2018 for the following household appliances:

• $200 for a 4 star or higher energy rated washing machine

• $250 for a 4 star or higher energy rated refrigerator

• $300 for a 4 star or higher energy rated air conditioner.

There was a limit of 1 rebate application per household.

Extending existing drought relief arrangements – Electricity Charge Scheme

Drought Relief Arrangements provide relief to farming customers from fixed charges for electricity accounts that are used to pump water for farm or irrigation purposes during periods of drought. The concessions can vary depending on the shires that are drought declared and the number of eligible customers.

Cloncurry Pipeline Water Supply Subsidy

North West Queensland Water Pipeline Limited (NWQWP), a SunWater Limited (SunWater) subsidiary, owns and operates the Cloncurry Pipeline between the Ernest Henry Mine and Cloncurry. The pipeline guarantees Cloncurry Shire Council’s long-term water supply and supports industrial development in the region. As the construction and operation of the Cloncurry Water Pipeline is a non-commercial investment, the Government provides funding to NWQWP to ensure that SunWater receives a return on its investment in the pipeline.

Extending existing drought relief arrangements – Water Licence Fee Waiver and Land Rental Rebates

As part of the Government’s drought assistance package, the annual water licence fee of $82 will be waived for 2018-19 for landholders in Local Government Areas (LGA) that are drought declared and other properties that are individually drought declared. The estimate is dependent on drought declarations and the demand for drought assistance.

Category 11 Grazing and Primary Production landholders under the Land Act 1994 will also be eligible to a rent rebate in 2018-19. The rebate is available to lessees, other than those on minimum rent that are in a drought declared LGA and to individually drought declared properties. In addition to this rebate, drought declared landholders will be granted a hardship deferral for required rent payments.

164

Budget Strategy and Outlook 2018-19

Origin Energy – Uniform Tariff Policy

The Origin Energy – Uniform Tariff Policy ensures that, where possible, all Queensland non-market electricity customers of a similar type pay the similar price for electricity regardless of where they live. Origin Energy retails electricity to approximately 5,450 Queensland non-market customers in the Goondiwindi, Texas and Inglewood areas who are supplied electricity through the New South Wales Essential Energy distribution network.

The Government provides a rebate to these customers, via a CSO payment to Origin Energy, to ensure they pay no more for electricity than similar customers in Queensland. Therefore, the CSO amount depends on the relative difference between Queensland and New South Wales retail electricity tariffs for non-market customers.

SunWater Rural Irrigation Water Price Subsidy

SunWater owns and operates water supply schemes across regional Queensland. As the owner of SunWater, the Government decides how much to recover of SunWater’s costs through irrigation prices. Currently, SunWater’s irrigation water prices for some schemes are set below the level necessary to recover the cost of supplying water to the irrigators. Government funding is provided to SunWater to offset the reduced revenue and to ensure that increases in water prices paid by rural irrigation customers to recover costs are gradual.

Seqwater Bulk Water Rural Irrigation Water Price Subsidy

Seqwater owns and operates water supply schemes across SEQ which also supply bulk water services to rural irrigation customers. Currently Seqwater’s rural irrigation prices for some schemes are set below the level necessary to recover the cost of supplying water to the irrigators. Government funding is provided to Seqwater to offset the reduced revenue and to ensure that increases in water prices paid by rural irrigation customers to recover costs are gradual.

Urban Water Price Path

As foreshadowed in the 2017-18 State Budget, the concessional period for the South East Queensland urban bulk water price path, which commenced in 2008, is ending as prices in South East Queensland converge to a common rate reflective of the actual cost of supply. Accordingly the Urban Water Price Path is not included in the 2018–19 Concession Statement and is not anticipated to be included in future years.

165

Budget Strategy and Outlook 2018-19

Table A.2.9 Department of Transport and Main Roads

Concession	2017-18 Est. Act. $ million		2018-19 Estimate $ million
General Public Transport Concessions (South East Queensland)1		1,289.2		1,440.1
Rail Network and Infrastructure Funding		591.9		618.3
General Public Transport Concessions (Regional Queensland)		238.8		246.7
Vehicle and boat registration concessions		168.6		177.5
School Transport Assistance Scheme		133.8		138.1
TransLink Transport Concessions (South East Queensland)		74.3		75.6
Rail Concession Scheme		36.5		37.4
Livestock and Regional Freight Contracts		33.2		34.7
Other transport concessions (Regional Queensland) and taxi subsidies2		25.1		20.9
Designated Public Transport Concessions for Seniors Card Holders		3.8		3.8
Practical Driving Test		3.5		3.6
Commercial ship registration and licensing3		2.4		—
Total		2,601.1		2,796.7

Notes:

1. The increase in 2018-19 is due to annual cost indexation, increased finance lease costs and availability and operator payments associated with the acquisition of New Generation Rollingstock.

2. This concession is estimated to decrease in 2018-19 as the current concessions associated with the Taxi Subsidy Scheme will transition to the NDIS funding model.

3. The reduction in the amount of concession is due to the Australian Maritime Safety Authority (AMSA) increasing its effort in regulating domestic commercial vessels while Maritime Safety Queensland has correspondingly reduced its efforts in this area. From 2018-19, AMSA will provide service delivery as national regulator to the commercial domestic vessel fleet and will also set and collect fees.

General Public Transport Concessions (South East Queensland)

The General Public Transport Concessions (South East Queensland) represents the direct funding contribution that Government makes towards the cost of operating public transport services within South East Queensland. This contribution effectively reduces the ticket price paid by all public transport users on bus, rail and ferry services, increasing the affordability of these services.

Rail Network and Infrastructure Funding

Rail network and infrastructure funding ensures that the State supported rail network is safe, reliable and fit for purpose. The contract also provides funding to Queensland Rail to support major capital projects and related asset strategies. The funding provided via this contract directly benefits customers of the State supported rail network, including both freight and passengers. Without this funding, rail access charges (including public transport fares) would be significantly higher for all users of the rail network.

166

Budget Strategy and Outlook 2018-19

General Public Transport Concessions (Regional Queensland)

The General Public Transport Concessions (Regional Queensland) represents the financial contribution that Government provides across a range of transport services in regional Queensland. The impact of this contribution benefits all public transport users through reduced transport fares. This concession covers:

• TravelTrain (excluding the ‘Rail Concession Scheme’ for eligible pensioners, veterans and seniors)

• subsidies for Kuranda Scenic Railway

• subsidies for Heritage Rail Services

• subsidies for regional bus and ferry operators (excluding concessional top up amounts and School Transport Assistance Scheme related amounts)

• subsidies for the Rail XPT Service (Sydney-Brisbane) and Savannahlander (Atherton Tableland)

• subsidies for air services to remote and rural communities within the State

• subsidies for long distance coach services to rural/remote communities within the State.

Vehicle and boat registration concessions

Registration concessions for light and heavy motor vehicles and recreational boats are provided to holders of the Pensioner Concession Card, Queensland Seniors Card and to those assessed by the Department of Veterans’ Affairs as meeting the necessary degree of incapacity or impairment. The concession is aimed at improving access to travel for pensioners, seniors and persons with a disability by providing a reduced rate of registration fees. For most eligible card holders, a concession for a family 4-cylinder vehicle would reduce the 12 month registration charge from $321.35 to $160.65. For a recreational boat up to and including 4.5 metres in length, the concession reduces the registration charge from $86.75 to $43.35 (based on registration charges at 1 July 2018).

A Special Interest Vehicle (SIV) registration concession is offered for motor vehicles that have low use associated with vintage and historic and street rod car club events. A 12 month registration for a 6-cylinder SIV concession reduces registration from $508.85 to $90.55. A concession is also available for specific purposes such as water, mineral or oil exploration and bee keeping. Other motor vehicle and recreational boat registration concessions are also provided to primary producers, local governments, charitable and community service organisations, and people living in remote areas without access to the wider road network.

School Transport Assistance Scheme

The School Transport Assistance Scheme assists students that do not have a school in their local area or who are from defined low income groups with travel costs. The scheme provides funding to reduce the cost of travelling to school on bus, rail and/or ferry services, with allowances for private vehicle transport in certain circumstances. A typical concession would be to fully fund the cost of travel from home to the nearest State primary or high school where no local primary or high school is available (for example, from Bargara to Bundaberg High School).

167

Budget Strategy and Outlook 2018-19

TransLink Transport Concessions (South East Queensland)

The TransLink Transport Concessions (South East Queensland) are provided by the Government to ensure access and mobility for Queenslanders who require assistance because of age, disability or fixed low income. Passengers entitled to receive public transport concessions include holders of a Pensioner Concession Card, Veterans’ Affairs Gold Card, Seniors Card (all states and territories), Companion Card, Vision Impairment Travel Pass, Total Permanent Incapacitated (TPI) Veteran Travel Pass, children, as well as secondary and tertiary students. In addition to these existing groups, concession groups now include Newstart and Youth Allowance (Job Seeker) recipients and asylum seekers. In February 2018, White Card Holders joined the groups eligible for public transport concessions. Under the new 2018 fares, for a peak one zone journey using a go card, the concession will reduce an adult fare from $3.25 to $1.63.

Rail Concession Scheme

The Queensland Rail Concession Scheme improves the affordability of long distance and urban rail services for eligible pensioners, veterans, seniors and current/past rail employees with 25 years of service. Assistance for long distance rail services is provided through discounted fares and free travel vouchers. For TravelTrain (long distance rail) services, depending on the service, the concession may be for free travel for up to four trips per year for Queensland pensioners (subject to availability of seats and payment of an administration fee).

Livestock and Regional Freight Contracts

The Livestock and Regional Freight Contracts provide funding to support the movement of cattle (via rail only) and freight (via road and rail) to and from regional areas of Queensland. The funding provided directly benefits the cattle industry and enables regional Queensland communities to maintain employment and directly benefits those communities who are reliant on rail freight services by reducing the cost of these freight services for users.

Other transport concessions (Regional Queensland) and taxi subsidies

Other transport concessions (Regional Queensland) and taxi subsidies are provided by the Government to ensure access and mobility for Queenslanders who require assistance because of age, disability or fixed low income. Passengers entitled to receive public transport concessions include holders of a Pensioner Concession Card, Veterans’ Affairs Gold Card, Seniors Card (all states and territories), Companion Card, Vision Impairment Travel Pass, TPI Veteran Travel Pass, children, as well as secondary and tertiary students. In addition to these existing groups, new concession groups are to include Newstart and Youth Allowance (Job Seeker) recipients and asylum seekers. In February 2018, White Card holders were also added to these existing groups. The Taxi Subsidy Scheme aims to improve the mobility of persons with severe disabilities by providing a 50% concession fare up to a maximum subsidy of $25 per trip.

Concessions associated with the Taxi Subsidy Scheme are transitioning to the NDIS funding model.

168

Budget Strategy and Outlook 2018-19

Designated Public Transport Concessions for Seniors Card Holders

Designated Public Transport Concessions for Seniors Card Holders allows visitors from interstate, who hold a state or territory Seniors Card, to access public transport concessions within Queensland and is fully funded by the Queensland Government.

Practical Driving Test

As part of the State’s driver licensing arrangements, applicants for new licences are required to undertake a practical driving test. The total cost to pre-book driver examinations and to perform the practical driver assessment is not fully recovered by the fee charged ($52.68 (ex GST) as at 1 July 2018), providing a direct concession to applicants.

Commercial ship registration and licensing

The commercial ship registration and licensing concession is ceasing as the regulation of domestic commercial vessels operations is now the responsibility of the Australian Maritime Safety Authority (AMSA). For 2017-18, the commercial vessel safety program including inspection and ship operator competency audits is funded from commercial ship registration and licensing revenue. The commercial ship registration and licensing concession represents the difference between the cost of supporting the safety of commercial vessels in Queensland waters and revenue collected via commercial registration and compliance fees. The concession represents a benefit to commercial ship owners and operators.

Table A.2.10 Queensland Fire and Emergency Services

Concession	2017-18 Est. Act. $ million		2018-19 Estimate $ million
Emergency Management Levy Concession		9.7		10.2
Total		9.7		10.2

Emergency Management Levy Concession

The Emergency Management Levy applies to all prescribed properties within Queensland. The levy provides a funding base for emergency services including emergency management, fire and rescue services. Owners of prescribed properties who are in receipt of an Australian Government pension are eligible to receive a discount of 20% on the levy payable for a property that is their principal place of residence. In addition, community organisation owners of specified properties are exempt from payment of the levy.

169

Budget Strategy and Outlook 2018-19

Table A.2.11 Queensland Health

Concession	2017-18 Est. Act. $ million		2018-19 Estimate $ million
Oral Health Scheme1		149.2		151.8
Patient Travel Subsidy Scheme2		81.8		84.8
Medical Aids Subsidy Scheme3		40.4		29.6
Spectacle Supply Scheme		9.3		9.3
Community Aids Equipment, Assistive Technologies Initiative and Vehicle Options Subsidy Scheme4		14.8		6.2
Total		295.5		281.7

Notes:

1. The $2.6 million increase from the 2017-18 estimated actual to the 2018-19 estimate is due to additional state funding in 2018-19 for Hospital and Health Services’ oral health services.

2. The Patient Travel Subsidy Scheme allocation is calculated on historical utilisation rates. The increase of $3.0 million from the 2017-18 estimated actual to the 2018-19 estimate is due to expected population growth and higher utilisation of the Scheme.

3. The variance is due to funding for this activity being progressively transferred to the National Disability Insurance Scheme (NDIS).

4. The variance is due to funding for this activity being progressively transferred to NDIS. The $6.2 million estimate is to address commitments carrying across from 2017-18 and residual application in 2018-19.

Oral Health Scheme

The Oral Health Scheme provides free dental care to eligible clients and their dependants who possess a current Health Care Card, Pensioner Concession Card, Queensland Seniors Card or Commonwealth Seniors Card. The average value of a course of treatment for eligible clients is approximately $600 for general care, $1,800 for treatment involving dentures, and $265 for emergency dental care. In rural and remote areas where no private dental practitioner exists, access to dental care for the general public is provided at a concessional rate, generally 15% to 20% less than average private dental fees.

Patient Travel Subsidy Scheme

The Patient Travel Subsidy Scheme (PTSS) provides financial assistance to patients who need to access specialist medical services which are not available within their local area. The PTSS provides a subsidy towards the cost of travel and accommodation for patients and, in some cases, an approved escort.

Patients will receive fully subsidised commercial transport if arranged by Queensland Health, or will be subsidised at the economy/government discount rate (less GST). Alternatively a subsidy of 30 cents per kilometre is paid where a private vehicle is used. The accommodation subsidy is $60 per person per night for the period the patient is required to be away from home for medical reasons and when they are not in hospital, and for their escort, if approved. A subsidy of $10 per person per night is payable to patients and approved escorts who stay in private accommodation.

170

Budget Strategy and Outlook 2018-19

Medical Aids Subsidy Scheme

The Medical Aids Subsidy Scheme (MASS) provides access to funding assistance for the provision of a range of aids and equipment to eligible Queensland residents with permanent and stabilised conditions or disabilities. Aids and equipment are provided primarily to assist people to live at home therefore avoiding premature or inappropriate residential care or hospitalisation.

Subsidies vary based on service category and clinical criteria and are provided to assist with the costs of communication aids, continence aids, daily living aids, medical grade footwear, mobility aids, orthoses and oxygen. The scheme will provide over 72,000 occasions of service to approximately 48,000 clients during 2018-19.

The National Disability Insurance Scheme (NDIS) is currently being rolled out in Queensland. MASS clients who are NDIS eligible are being transitioned to the scheme with associated funding progressively cashed out to the NDIS.

Spectacle Supply Scheme

The Spectacle Supply Scheme provides eligible Queensland residents with free access to a comprehensive range of basic spectacles every two years including bifocals and trifocals. Applicants must be holders of eligible concession cards and be deemed by a prescriber to have a clinical need for spectacles.

The scheme provides around 75,000 items to approximately 72,000 clients (some clients require more than one pair of spectacles due to clinical need). The average cost of services provided to applicants is approximately $124 per item, including the costs of administering the scheme through the Medical Aids Subsidy Scheme.

171

Budget Strategy and Outlook 2018-19

Community Aids Equipment, Assistive Technologies Initiative and Vehicle Options Subsidy Scheme

The Community Aids Equipment and Assistive Technologies Initiative (CAEATI) and Vehicle Options Subsidy Scheme (VOSS) provide financial assistance to eligible Queensland residents to support them to be more independent, participate further in social and economic opportunities in the community and contribute to a better quality of life.

CAEATI funding is capped at $10,000 per client over a three year period. CAEATI includes aids, equipment and assistive technologies for postural support, communication support, community mobility and active participation.

VOSS funding is capped at $10,000 per client over a five year period. VOSS provides subsidies for a range of vehicle access options, including the subsidy of driving lessons on a suitably modified vehicle, modifications to a vehicle, purchase of a suitably modified vehicle or vehicle suitable for modification.

To receive funding through either of these schemes, an individual must be assessed as eligible for specialist disability support under the Disability Support Act 2006. Queensland resident eligibility is determined during the intake process, and confirmed as part of the assessment process.

The National Disability Insurance Scheme (NDIS) is currently being rolled out in Queensland. CAEATI and VOSS clients who are NDIS eligible are being transitioned to the scheme with associated funding progressively cashed out to the NDIS.

172

Budget Strategy and Outlook 2018-19

A.3 Concessions by entity – Government-owned Corporations

Table A.3.1 Energy Queensland

Concession	2017-18 Est. Act. $ million		2018-19 Estimate $ million
Regulated Service Charges - Energex		17.1		17.2
Regulated Service Charges - Ergon		4.9		5.7
Total		22.0		22.9

Regulated Service Charges – Energex

Under Schedule 8 of the Electricity Regulation 2006, charges for a range of services provided by Energex Limited (Energex) to energy retailers, for example disconnection and reconnection of supply, are capped. The maximum amount Energex is able to charge for these services is, on average, less than the value which the Australian Energy Regulator ascribes to the provision of these services by Energex, resulting in a concession provided to energy retailers and in turn households.

Regulated Service Charges – Ergon

Under Schedule 8 of the Electricity Regulation 2006, service charges for a range of services provided by Ergon Energy Corporation Limited (Ergon Energy) to energy retailers, for example disconnection and reconnection of supply, are capped. The maximum amount Ergon Energy is able to charge for these services is, on average, less than the value which the Australian Energy Regulator ascribes to the provision of these services by Ergon Energy, resulting in a concession provided to energy retailers and in turn households.

Table A.3.2 Gladstone Ports Corporation Limited

Concession	2017-18 Est. Act. $ million		2018-19 Estimate $ million
Concessional Port Charges1		52.0		39.8
Total		52.0		39.8

Note:

1. The variance is due to some uncommercial legacy contracts expiring and being replaced with new contracts at market rates.

173

Budget Strategy and Outlook 2018-19

Concessional Port Charges

The Gladstone Ports Corporation Limited (GPC) is subject to a number of long-term major industry contracts where port charges are significantly lower than market rates. These historical contracts were entered into to support various industries and government initiatives from time to time. The amounts shown are estimates of the revenue foregone by GPC as a result of being unable to charge commercial rates.

Table A.3.3 SunWater Limited

Concession	2017-18 Est. Act. $ million		2018-19 Estimate $ million
Water Supply Contracts		48.5		49.4
Total		48.5		49.4

Water Supply Contracts

SunWater Limited has a number of historic non-commercial water supply contracts that benefit specific entities, predominantly local government authorities. The future treatment of these water supply contracts is currently being considered by Government. The amount shown represents the difference between revenue and expenses under a fully costed allocation model.

SunWater and local governments have agreed to work together to negotiate new arrangements for water supply over the next 18 months. The amount shown represents the difference between revenue and expenses under a fully costed allocation model.

Table A.3.4 Concessional Leases (Industry, Commercial and Community) by entity

Concession	2017-18 Est. Act. $ million		2018-19 Estimate $ million
Port of Townsville Limited		5.7		5.8
Gladstone Ports Corporation Limited		3.5		3.3
Queensland Rail Limited		1.7		1.9
North Queensland Bulk Ports Corporation Limited		1.6		1.7
Far North Queensland Ports Corporation Limited		0.8		0.8
Total		13.3		13.5

Concessional Leases (Industry, Commercial and Community)

The above Government Owned Corporation entities provide leases to various community organisations, local councils, Government departments and industry participants at below commercial rates. The amounts shown are estimates of the revenue foregone by not charging commercial rates.

174

Budget Strategy and Outlook 2018-19

Appendix B: Tax expenditure statement

Context

Governments employ a range of policy tools to achieve social and economic objectives. These include the use of direct budgetary outlays, regulatory mechanisms and taxation. This Tax Expenditure Statement (TES) details revenue foregone as a result of Government decisions relating to the provision of tax exemptions or concessions. The TES is designed to improve transparency in the use of tax expenditures and increase public understanding of the fiscal process.

Tax expenditures are reductions in tax revenue that result from the use of the taxation system as a policy tool to deliver Government policy objectives. Tax expenditures are provided through a range of measures, including:

• tax exemptions

• the application of reduced tax rates to certain groups or sectors of the community

• tax rebates

• tax deductions

• provisions which defer payment of a tax liability to a future period.

Labelling an exemption or concession as a tax expenditure does not necessarily imply any judgement as to its appropriateness. It merely makes the amount of the exemption or concession explicit and thereby facilitates its scrutiny as part of the annual Budget process.

Methodology

Revenue foregone approach

The method used almost exclusively by governments to quantify the value of their tax expenditures is the revenue foregone approach. This method estimates the revenue foregone through use of the concession by applying the benchmark rate of taxation to the volume of activities or assets affected by the concession. One of the deficiencies of the revenue foregone approach is that the effect on taxpayer behaviour resulting from the removal of the particular tax expenditure is not factored into the estimate. Consequently, the aggregation of costings for individual tax expenditure items presented in the TES will not necessarily provide an accurate estimate of the total level of assistance provided through tax expenditures.

Measuring tax expenditures requires the identification of:

• a benchmark tax base

• concessionally taxed components of the benchmark tax base such as a specific activity or class of taxpayer

• a benchmark tax rate to apply to the concessionally taxed components of the tax base.

175

Budget Strategy and Outlook 2018-19

Defining the tax benchmark

The most important step in the preparation of a TES is the establishment of a benchmark for each tax included in the statement. The benchmark provides a basis against which each tax concession can be evaluated. The aim of the benchmark is to determine which concessions are tax expenditures as opposed to structural elements of the tax. The key features of a tax benchmark are:

• the tax rate structure

• any specific accounting conventions applicable to the tax

• the deductibility of compulsory payments

• any provisions to facilitate administration

• provisions relating to any fiscal obligations.

By definition, tax expenditures are those tax concessions not included as part of the tax benchmark.

Identification of benchmark revenue bases and rates requires a degree of judgement and is not definitive. Furthermore, data limitations mean that the tax expenditures are approximations and are not exhaustive. This statement does not include estimates of revenue foregone from exemptions or concessions provided to Government agencies. Very small exemptions or concessions are also excluded.

The tax expenditure statement

This year’s statement includes estimates of tax expenditures in 2016-17 and 2017-18 for payroll tax, land tax, duties and gambling taxes. A summary of the major tax expenditures valued on the basis of revenue foregone is presented in Table B.1. Not all expenditures can be quantified at this time. Accordingly, the total value of tax expenditures should be considered as indicative only.

176

Budget Strategy and Outlook 2018-19

Table B.1 Tax expenditure summary¹

	2016-172 $ million		2017-18 $ million
Payroll Tax
Exemption threshold		1,392		1,384
Deduction scheme		342		361
Section 14 exemptions
Local Government		143		148
Education		192		196
Hospitals		393		425
Total Payroll Tax		2,462		2,513
Land Tax
Liability thresholds3		726		744
Graduated land tax scale		666		868
Primary production deduction		86		88
Part 6 Divisions 2 and 3 exemptions not included elsewhere4		140		142
Land developers’ concession		12		13
Total Land Tax		1,630		1,855
Duties
Transfer duty on residential property
Home concession		406		406
First home concession		222		221
First home vacant land		30		31
Insurance duty
WorkCover		57		62
Health insurance		420		437
Total Duties		1,134		1,157
Taxes on Gambling
Gaming machine taxes		114		122
Casino taxes		8		9
Total Gambling Tax		122		131
Total		5,348		5,656

Notes:

1. Numbers may not add due to rounding.

2. 2016-17 estimates may have been revised since the 2017-18 Budget.

3. Land tax is payable only on the value of taxable land above a threshold which depends on the ownership structure.

4. Applicable, but not limited, to religious bodies, public benevolent institutions and other exempt charitable institutions.

177

Budget Strategy and Outlook 2018-19

Discussion of individual taxes

Payroll tax

The benchmark tax base for payroll tax is assumed to be all taxable wages, salaries and supplements (including employer superannuation contributions) paid in Queensland, as defined in the Payroll Tax Act 1971. The benchmark tax rate for payroll tax is assumed to be the statutory rate applying in each financial year.

Payroll tax exemption threshold

Employers who employ in Queensland with an annual Australian payroll of $1.1 million or less are exempt from payroll tax. On the basis of 2016-17 average weekly earnings, this threshold corresponded to approximately 13 full-time equivalent employees. This exemption is designed to assist small and medium sized businesses.

Deduction scheme

Employers who employed in Queensland with Australian payrolls between $1.1 million and $5.5 million benefited from a deduction of $1.1 million, which reduced by $1 for every $4 by which the annual payroll exceeded $1.1 million. The deduction is pro-rated for interstate wages. There was no deduction for employers or groups that had an annual payroll in excess of $5.5 million.

Section 14 exemptions

A number of organisations are provided with exemptions from payroll tax under Section 14 of the Payroll Tax Act 1971. The activities for which estimates have been calculated are wages paid by public hospitals, non-tertiary private educational institutions and local governments (excluding commercial activities).

Land tax

The benchmark tax base is assumed to be all freehold land within Queensland, excluding residential land used as a principal place of residence and land owned by individuals with a value for that year below the threshold. The benchmark tax rate for land tax is assumed to be the top rate of land tax applicable in Queensland in each financial year.

Liability thresholds

Land tax is payable on the value of taxable land equal to or above a threshold which depends on the land’s ownership. The threshold for companies, trusts and absentees is $350,000 and for resident individuals the threshold is $600,000.

Land owned by resident individuals as their principal place of residence is excluded from the estimate. The exemption from paying below a minimum amount is not included as a tax expenditure as it is regarded as the application of an administration threshold.

178

Budget Strategy and Outlook 2018-19

Graduated land tax scale

A graduated (concessional) scale of land tax rates is applicable to land with a taxable value of less than $5 million for resident individuals and companies, trustees and absentees.

The benchmark rates used for estimating the tax expenditures were 1.75% for individuals and 2.0% for companies, trustees and absentees.

Primary production deduction

The taxable value of land owned by a resident individual, trustee or some absentees and companies does not include all or part of their land that is used for the business of agriculture, pasturage or dairy farming.

Part 6 Divisions 2 and 3 exemptions (not elsewhere included)

A number of land tax exemptions are granted in Part 6 Divisions 2 and 3 of the Land Tax Act 2010 to eligible organisations. These include, but are not limited to, public benevolent institutions, religious institutions and other exempt charitable institutions, retirement villages, trade unions and showgrounds.

Land developers’ concession

Land tax payable by land developers is calculated on the basis that the unimproved value of (undeveloped) land subdivided in the previous financial year and which remains unsold at 30 June of that year is 60% of the Valuer-General’s value. This concession is outlined in Section 30 of the Land Tax Act 2010.

Duties

Home concession

A concessional rate of duty applies to purchases of a principal place of residence. A 1% concessional rate applies on dutiable values up to $350,000, rather than the normal schedule of rates between 1.5% and 3.5%. For properties valued over $350,000, the scheduled rates of transfer duty apply on the excess.

First home concession

Where a purchaser has not previously owned a residence in Queensland or elsewhere, the purchaser of a home receives a more generous concession on duty. This concession comprises a rebate in addition to the home concession on properties (this concession may not be applicable if the purchase price is less than the full market value of the property). The size of the rebate depends on the value of the property. A full concession is provided to purchases of a first principal place of residence valued up to $500,000.

179

Budget Strategy and Outlook 2018-19

First home vacant land concession

A first home concession is available for the purchase of certain vacant land up to the value of $400,000, with a full concession available on certain vacant land up to the value of $250,000.

Insurance duty

The benchmark tax base is assumed to be all premiums for general insurance policies (not for life insurance). The benchmark tax scale is assumed to be the scale that actually applied in each financial year.

Gambling taxes

Gaming machine tax concessions for licensed clubs

The benchmark tax base is assumed to be all gaming machines operated by licensed clubs and hotels in Queensland. The benchmark tax rate is assumed to be the highest marginal tax rate (as is applied to hotels) that actually applied in each financial year.

A progressive tax rate scale applies to gaming machines operated by licensed clubs. The tax rate is calculated monthly on the gaming machine taxable metered win and the top tax rate is only applied to the portion of gaming machine revenue where the monthly metered win exceeds $1.4 million for any licensed club.

Casino tax concessions

The benchmark tax base is assumed to be all casinos operating in Queensland. The benchmark tax rate is assumed to be the highest tax rate that is actually applied in each financial year.

A tax rate of 20% of gross revenue applies for standard transactions in the Brisbane and Gold Coast casinos. A concessional tax rate of 10% applies for gross revenue from standard transactions in the Cairns and Townsville casinos. The tax rate applicable to gaming machines in casinos is 30% of gross revenue in the Brisbane and Gold Coast casinos and 20% in the Cairns and Townsville casinos.

In addition, concessional rates of 10% also apply for revenue from high rollers table game play in all casinos. A goods and services tax (GST) credit is provided to casinos that approximates a reduction in the above tax rates of 9.09%

180

Budget Strategy and Outlook 2018-19

Appendix C: Revenue and expense assumptions and sensitivity analysis

The Queensland Budget, like those of other jurisdictions, is based in part on assumptions made about parameters that are uncertain, both internal and external to the State, which can impact directly on economic and fiscal forecasts.

This appendix outlines the assumptions underlying the revenue and expense estimates and analyses the sensitivity of the estimates to changes in the economic and other assumptions. This analysis is provided to enhance the level of transparency and accountability of the Government.

The forward estimates in the Budget are framed on a no policy change basis. That is, the expenditure and revenue policies in place at the time of the Budget (including those announced in the Budget) are applied consistently throughout the forward estimates period.

The following discussion provides details of some of the key assumptions, estimates and risks associated with revenue and expenditure and, where a direct link can be established, the indicative impact on forecasts resulting from a movement in those variables.

Table C.1 Taxation and royalty revenue¹

	2016-17 Actual $ million		2017-18 Est. Act. $ million		2018-19 Budget $ million		2019-20 Projection $ million		2020-21 Projection $ million		2021-22 Projection $ million
Payroll tax		3,695		3,887		4,086		4,312		4,574		4,850
Transfer duty		3,278		3,090		3,214		3,396		3,578		3,768
Other duties		1,405		1,477		1,572		1,650		1,731		1,816
Gambling taxes and levies		1,127		1,194		1,307		1,388		1,448		1,471
Land tax		1,082		1,183		1,313		1,368		1,433		1,512
Motor vehicle registration		1,681		1,755		1,829		1,892		1,961		2,032
Other taxes		651		699		834		1,179		1,227		1,273
Total taxation revenue		12,919		13,284		14,155		15,184		15,951		16,722
Royalties
Coal		3,405		3,768		3,522		3,135		2,774		2,866
Petroleum2		98		188		447		446		438		450
Other royalties3		376		371		479		506		515		506
Land rents		122		157		167		172		178		189
Total royalties and land rents		4,000		4,484		4,615		4,260		3,904		4,011

Notes:

1. Numbers may not add due to rounding.

2. Includes impact of liquefied natural gas (LNG).

3. Includes base and precious metal and other mineral royalties.

181

Budget Strategy and Outlook 2018-19

Taxation revenue assumptions and revenue risks

The rate of growth in tax revenues is dependent on a range of factors that are linked to the rate of growth in economic activity in the State. Some taxes are closely related to activity in specific sectors of the economy, whilst others are broadly related to the general rate of economic growth, employment, inflation and wages. A change in the level of economic activity, resulting from economic growth differing from forecast levels, would impact upon a broad range of taxation receipts.

Wages and employment growth – payroll tax collections

Wages and employment growth have a direct impact on payroll tax collections. The Budget assumptions are for an increase in wages of 2¹⁄₂ and an increase in employment of 1¹⁄₂% in 2018-19. The composition of the payroll tax base is also important as businesses in fast growing sectors such as tourism, retail and hospitality are often outside the tax base because they are below the threshold. A one percentage point variation in either Queensland wages growth or employment would change payroll tax collections by approximately $41 million in 2018-19.

Transfer duty estimates

Transfer duty collections in 2018-19 are expected to increase by 4.0% on the 2017-18 estimated actual with restrained growth in the residential sector being supported by stronger growth in large non-residential transactions and revenue from the additional foreign acquirer duty measure. Across the forward estimates period, moderate growth is expected in both residential and non-residential transfer duty as sentiment in both markets begins to improve.

A one percentage point variation in either the average value of property transactions or the volume of transactions would change transfer duty collections by approximately $32 million in 2018-19.

182

Budget Strategy and Outlook 2018-19

Royalty assumptions and revenue risks

Table C.2 Coal royalty assumptions

	2017-18		2018-19		2019-20		2020-21		2021-22
	Est. Act. $ million		Budget $ million		Projection $ million		Projection $ million		Projection $ million
Tonnages - crown export1		212		222		233		236		242
Exchange rate US$ per A$2		0.78		0.75		0.75		0.75		0.75
Year average coal prices (US$ per tonne)3
Hard coking		198		161		140		130		130
Semi-soft		142		128		110		101		101
Thermal		87		89		79		75		75
Year average oil price
Brent (US$ per barrel)		62		73		67		66		67

Notes:

1. Excludes coal produced for domestic consumption and coal where royalties are not paid to the Government, i.e. private royalties. 2018-19 estimate for domestic coal volume is approximately 26.1 Mt and private coal is 11.2 Mt.

2. Year average.

3. Price for highest quality coking and thermal coal. Lower quality coal can be sold below this price with indicative average prices for 2018-19 as follows: Hard coking US$151 and thermal US$83.

Royalty Assumptions

Table C.2 provides the 2018-19 Budget assumptions regarding coal royalties, which represent the bulk of Queensland’s royalty revenue.

Exchange rate and commodity prices and volumes – royalties estimates

Estimates of mining royalties are sensitive to movements in the A$-US$ exchange rate and commodity prices and volumes. Contracts for the supply of commodities are generally written in US dollars. Accordingly, a change in the exchange rate impacts on the Australian dollar price of commodities and therefore expected royalties collections.

Coal

For each one cent movement in the A$-US$ exchange rate, the impact on royalty revenue would be approximately $66 million in 2018-19.

A 1% variation in export coking and thermal coal volumes would lead to a change in royalty revenue of approximately $32 million. A 1Mt variation would lead to a change in royalty revenue of approximately $14 million.

183

Budget Strategy and Outlook 2018-19

A 1% variation in the average price of export coal would lead to a change in royalty revenue of approximately $50 million.

Parameters influencing Australian Government GST payments to Queensland

The Queensland Budget incorporates estimates of GST revenue grants to Queensland based on Australian Government estimates of national GST collections and Queensland Treasury assumptions of Queensland’s share. The estimates of collections are primarily determined by the value of consumption subject to GST.

Since the Australian Government payments are based on the amount actually collected, it is Queensland’s Budget that bears the risks of fluctuations in GST collections. As with all other tax estimates, there is a risk of lower collections than estimated if economic growth and consumption are weaker than expected.

Due to the complexities associated with the GST base, the information provided in the Australian Government Budget Papers is not sufficient to prepare indicative forecasts of the sensitivity of GST estimates to key variables.

Sensitivity of expenditure estimates and expenditure risks

Public sector wage costs

Salaries and wages form a large proportion of General Government Sector operating expenses. Increases in salaries and wages are negotiated through enterprise bargaining agreements.

The 2018-19 Budget and forward estimates reflect wage increases as per existing agreements and the Government’s wages policy where outcomes are yet to be finalised.

A general 1% increase in wage outcomes in one year would increase expenses by around $240 million in that year. The impact would compound and be much larger in the later years.

Interest rates

The General Government Sector has a total debt servicing cost estimated at $1.474 billion in 2018-19. The current average duration of General Government Sector debt is just over 5.5 years. The majority of General Government Sector debt is held under fixed interest rates and therefore the impact of interest rate variations on debt servicing costs in 2018-19 would be relatively modest, with the impact occurring progressively across the forward estimates.

Actuarial estimates of superannuation and long service leave

Liabilities for superannuation and long service leave are estimated by the State Actuary with reference to, among other things, assumed rates of investment returns, salary growth, inflation and discount rate. These liabilities are therefore subject to changes in these parameters. Similarly, the long service leave liabilities are subject to the risk that the actual rates of employee retention will vary from those assumed in the liability calculation.

184

Budget Strategy and Outlook 2018-19

Appendix D: Fiscal aggregates and indicators

Table D.1 Key Fiscal Aggregates¹

	2010-11			2011-12			2012-13			2013-14			2014-15			2015-16			2016-17			2017-18			2018-19			2019-20			2020-21			2021-22
	Actual			Actual			Actual			Actual			Actual			Actual			Actual			Revised			Budget			Projection			Projection			Projection
	$ million			$ million			$ million			$ million			$ million			$ million			$ million			$ million			$ million			$ million			$ million			$ million
General Government
Total revenue		42,013			45,801			41,755			46,705			49,970			50,780			56,194			58,259			57,738			58,835			59,939			62,269
Tax revenue		9,981			10,608			10,937			11,840			12,598			12,547			12,919			13,284			14,155			15,184			15,951			16,722
Total expenses		43,479			46,028			46,313			46,217			49,551			50,112			53,369			56,747			57,590			58,675			59,829			61,579
Employee expenses		16,826			18,250			18,130			17,816			18,592			20,045			21,258			22,838			23,807			24,645			25,541			26,466
Net operating balance		(1,466	)		(226	)		(4,558	)		488			420			668			2,825			1,512			148			160			110			690
Capital purchases		8,237			7,971			7,001			6,323			4,635			4,044			4,634			4,905			5,927			7,557			7,396			7,081
Net capital purchases		5,583			5,241			3,389			3,087			992			1,164			2,285			2,119			3,183			4,044			3,512			3,331
Fiscal balance		(7,049	)		(5,467	)		(7,947	)		(2,599	)		(572	)		(497	)		540			(604	)		(3,033	)		(3,881	)		(3,400	)		(2,636	)
Borrowings		24,594			29,518			37,879			41,369			43,105			35,486			33,260			31,367			32,311			35,861			39,588			42,290
Net debt		(9,542	)		(5,720	)		2,399			5,208			5,749			653			(335	)		(267	)		2,815			7,336			11,018			13,707
Non-Financial Public Sector
Total revenue		49,040			52,307			49,181			53,502			56,178			57,393			64,840			66,192			65,467			66,510			67,970			70,550
Capital purchases		13,306			11,980			10,774			9,313			7,811			6,852			7,305			7,656			9,057			10,786			10,523			10,177
Borrowings		53,708			61,542			69,086			72,637			75,233			72,922			71,904			69,501			70,871			75,214			79,750			83,093

Notes:

1. Bracketed numbers represent negative amounts.

185

Budget Strategy and Outlook 2018-19

Table D.2 Key Fiscal Indicators¹

	2010-11			2011-12			2012-13			2013-14			2014-15			2015-16			2016-17		2017-18			2018-19			2019-20			2020-21			2021-22
	Actual			Actual			Actual			Actual			Actual			Actual			Actual		Revised			Budget			Projection			Projection			Projection
	%			%			%			%			%			%			%		%			%			%			%			%
General Government
Revenue/GSP		16.2			16.5			14.8			16.1			16.9			16.7			17.2		16.6			15.8			15.5			15.1			15.0
Tax/GSP		3.8			3.8			3.9			4.1			4.3			4.1			4.0		3.8			3.9			4.0			4.0			4.0
Own source revenue/GSP		8.3			8.2			8.2			8.6			8.9			8.9			8.8		8.5			8.2			8.1			7.8			7.7
Expenses/GSP		16.7			16.5			16.4			16.0			16.8			16.5			16.3		16.2			15.8			15.5			15.1			14.8
Employee expenses/GSP		6.5			6.6			6.4			6.2			6.3			6.6			6.5		6.5			6.5			6.5			6.5			6.4
Net operating balance/GSP		(0.6	)		(0.1	)		(1.6	)		0.2			0.1			0.2			0.9		0.4			0.0			0.0			0.0			0.2
Capital purchases/GSP		3.2			2.9			2.5			2.2			1.6			1.3			1.4		1.4			1.6			2.0			1.9			1.7
Net cash inflows from operating activities/Net cash flows from investments in non-financial assets		26.3			36.3			(40.8	)		45.9			97.5			122.9			133.5		99.0			59.7			40.2			44.5			53.2
Fiscal balance/GSP		(2.7	)		(2.0	)		(2.8	)		(0.9	)		(0.2	)		(0.2	)		0.2		(0.2	)		(0.8	)		(1.0	)		(0.9	)		(0.6	)
Borrowings/GSP		9.5			10.6			13.4			14.3			14.6			11.7			10.2		8.9			8.9			9.5			10.0			10.2
Borrowings/revenue		58.5			64.4			90.7			88.6			86.3			69.9			59.2		53.8			56.0			61.0			66.0			67.9
Revenue growth		13.3			9.0			(8.8	)		11.9			7.0			1.6			10.7		3.7			(0.9	)		1.9			1.9			3.9
Tax growth		12.6			6.3			3.1			8.3			6.4			(0.4	)		3.0		2.8			6.6			7.3			5.0			4.8
Expenses growth		17.2			5.9			0.6			(0.2	)		7.2			1.1			6.5		6.3			1.5			1.9			2.0			2.9
Employee expenses growth		17.6			8.5			(0.7	)		(1.7	)		4.4			7.8			6.1		7.4			4.2			3.5			3.6			3.6
Non-Financial Public Sector
Capital purchases/GSP		5.1			4.3			3.8			3.2			2.6			2.3			2.2		2.2			2.5			2.8			2.7			2.5
Borrowings/GSP		20.7			22.1			24.5			25.1			25.5			24.0			22.0		19.8			19.4			19.9			20.1			20.0
Borrowings/revenue		109.5			117.7			140.5			135.8			133.9			127.1			110.9		105.0			108.3			113.1			117.3			117.8
Net financial liabilities2/revenue		112.3			132.1			157.1			148.7			140.7			144.0			128.5		124.0			129.4			132.4			135.2			134.3

Notes:

1. Bracketed numbers represent negative amounts.

2. UPF definition, which is equal to total financial assets less investments in other public sector entities less total liabilities.

186

Queensland Budget 2018-19  Budget Strategy and Outlook  Budget Paper No.2

Queensland Budget 2018-19

Budget Strategy and Outlook  Budget Paper No.2

budget.qld.gov.au

Queensland Budget 2018-19

CAPITAL STATEMENT

Budget Paper No. 3

budget.qld.gov.au

2018-19 Queensland Budget Papers

1. Budget Speech

2. Budget Strategy and Outlook

3. Capital Statement

4. Budget Measures

5. Service Delivery Statements

Appropriation Bills

Budget Highlights

The Budget Papers are available online at budget.qld.gov.au

© Crown copyright

All rights reserved

Queensland Government 2018

Excerpts from this publication may be reproduced, with appropriate

acknowledgement, as permitted under the Copyright Act.

Capital Statement

Budget Paper No.3

ISSN 1445-4890 (Print)

ISSN 1445-4904 (Online)

Capital Statement 2018-19

State Budget

2018-19

Capital Statement

Budget Paper No. 3

Capital Statement 2018-19

Contents

1	Approach and highlights	1
Features		1
1.1	Introduction	2
1.2	Capital planning and prioritisation	3
1.3	Innovative funding and financing	4
1.4	Key projects	9
1.5	Highlights by asset class	14
2	2018-19 Capital program overview	22
2.1	Introduction	22
2.2	Capital purchases	23
2.3	Capital grants	27
3	Capital outlays by entity	31
3.1	Aboriginal and Torres Strait Islander Partnerships	31
3.2	Agriculture and Fisheries	32
3.3	Child Safety, Youth and Women	35
3.4	Communities, Disability Services and Seniors	38
3.5	Education	41
3.6	Electoral Commission of Queensland	52
3.7	Employment, Small Business and Training	53
3.8	Environment and Science	55
3.9	Housing and Public Works	60
3.10	Innovation, Tourism Industry Development and the Commonwealth Games	67
3.11	Justice and Attorney-General	69
3.12	Legislative Assembly of Queensland	72
3.13	Local Government, Racing and Multicultural Affairs	73
3.14	Natural Resources, Mines and Energy	75

Capital Statement 2018-19

3.15	Premier and Cabinet	91
3.16	Public Safety Business Agency	92
3.17	Queensland Corrective Services	98
3.18	Queensland Fire and Emergency Services	100
3.19	Queensland Health	102
3.20	Queensland Police Service	113
3.21	Queensland Treasury	114
3.22	State Development, Manufacturing, Infrastructure and Planning	116
3.23	Transport and Main Roads	120

Appendix A:	Entities included in capital outlays 2018-19	140
Appendix B:	Key concepts and coverage	143
Appendix C:	Capital purchases by entity by region 2018-19	144

Capital Statement 2018-19

1 Approach and highlights

Features

• The Palaszczuk Government is delivering a significant capital works program, including both productivity-enhancing economic infrastructure and essential social infrastructure, to support Queensland’s growing population.

• With the State’s population having grown to more than five million, the Palaszczuk Government’s infrastructure program will generate jobs, drive economic growth, enhance the productive capacity of the State’s business and industries, and improve the quality of life enjoyed by Queensland families and communities.

• Over the forward estimates period, the Palaszczuk Government has allocated a total of $45.769 billion to fund essential infrastructure and capital works to build the State’s cities and support the growth of Queensland’s regional economies.

• In 2018-19, the Palaszczuk Government will deliver a $11.583 billion capital program, up from $10.171 billion allocated for the 2017-18 capital program in last year’s Budget.

• To meet the needs of Queensland’s growing population, the Government’s 2018-19 capital works program includes a $4.950 billion investment in roads and transport infrastructure.

• Key transport funding in 2018-19 includes: $147.3 million towards M1 Pacific Motorway upgrades; $534.3 million towards the Toowoomba Second Range Crossing; $200 million to duplicate the Bruce Highway from four to six lanes, from Caloundra Road to the Sunshine Motorway; and $733 million for the Cross River Rail Delivery Authority to continue to progress the planning, procurement and development associated with the $5.409 billion Cross River Rail project.

• Capital purchases for the health portfolio total $985.5 million in 2018-19, including $84.8 million as part of the Enhancing Regional Hospitals program and $53.3 million as part of the Rural and Regional Infrastructure package.

• The education portfolio will make $674.3 million of capital purchases in 2018-19, including $125.2 million for new classrooms and infrastructure in state secondary schools to accommodate the six full cohorts in 2020 and $94.5 million as part of the $808 million Building Future Schools Fund.

• The energy and water portfolios will make capital purchases of $2.178 billion and $277 million respectively in 2018-19 to deliver cost effective, safe, secure and reliable energy and water supply across the State.

• The Budget also includes significant investments to support the delivery of priority justice and public safety services in Queensland communities in 2018-19, including $107 million out of a total $241 million to provide 348 additional cells at Capricornia Correctional Centre and $55 million in 2018-19 to refurbish, upgrade or replace police facilities across the State.

1

Capital Statement 2018-19

• Key capital investments in social housing in 2018-19 include $339.1 million to construct new dwellings and upgrade existing properties and $103.6 million of capital grants to assist non-government organisations to construct and upgrade social housing dwellings.

• A key element of the Government’s capital program is providing grants to local governments to ensure they can deliver the essential infrastructure needed to support communities across Queensland. The Government’s 2018-19 capital grants program of $1.661 billion includes $147.8 million for Works for Queensland, providing councils with the resources to deliver small priority infrastructure projects throughout the State.

• The Government is providing $9.5 million of additional disaster resilience spending in 2018-19 ($38 million over four years), recognising the importance of building the resilience of local communities to ensure they recover more quickly after a disaster and ensure essential services and transport links are maintained.

• The Government has implemented a clear focus on improving the timely delivery of essential infrastructure for Queensland. This has resulted in an improvement in the amount of capital expenditure delivered, with the proportion of budgeted capital purchases actually delivered in 2016-17 being the highest in the past five years. Further improvement is anticipated in 2017-18, with more than 90 per cent of budgeted capital purchases expected to be delivered, compared with the average of 85 per cent for the past five years from 2012-13 to 2016-17.

1.1 Introduction

The arrival of the five millionth Queenslander in May 2018 highlighted the challenges and opportunities that the State faces with a growing population. The 2018-19 capital statement outlines how the Queensland Government will meet these challenges by building new infrastructure, including new schools and hospitals and better transport networks, which will help Queenslanders and local businesses succeed.

In addition to meeting the challenges of a growing population and maintaining world-class essential services, the Government’s vision for infrastructure is about generating jobs and building a strong and sustainable modern economy for all Queenslanders. Whether it’s sports stadiums, schools or hospitals, infrastructure will support the social and economic activity of future Queenslanders.

Projects such as the Western Roads Upgrade Supplement, Bruce Highway and M1 Pacific Motorway upgrades, and Cross River Rail will provide the vital transport links which will be the catalyst to unlock communities and expand economic activity across the State. Infrastructure assessment by Building Queensland ensures the right infrastructure is being built at the right time and with quantifiable returns. The Government’s detailed infrastructure strategy is outlined in the regularly updated State Infrastructure Plan.

The Government’s substantial infrastructure investment directly generates significant employment during construction. It is estimated that the $11.583 billion capital works program in 2018-19 will directly support more than 38,000 jobs, equating to around 33,000 full time equivalent jobs.

2

Capital Statement 2018-19

In addition to the more immediate construction-related jobs generated through the capital works program, the resulting infrastructure will support and create future jobs, by attracting and encouraging private sector investment, increasing the productivity, efficiency and competitiveness of the State’s businesses and industries, and expanding the long-term productive capacity of the economy.

1.2 Capital planning and prioritisation

1.2.1 State Infrastructure Plan

The State Infrastructure Plan (SIP) provides a clear vision for planning, investment and delivery of infrastructure in Queensland. The SIP underpins the Government’s commitment to support jobs and the economy, by ensuring the State is investing in the right infrastructure, in the right place and at the right time. The implementation of the SIP is led by the Department of State Development, Manufacturing, Infrastructure and Planning.

The SIP is designed to provide confidence and certainty to industry, local government and the community by confirming the Government’s investment program over the next four years.

SIP Part A, released in March 2016, sets out the Government’s medium-term agenda. This forms the basis of the regularly updated SIP Part B which details the current investment program. The 2018 SIP Part B update will align with the 2018-19 State Budget and reflect the Government’s current capital investment program. The update will continue to give the private sector and all levels of government confidence to invest in the State. The update is a critical tool to align and integrate national, state, regional and local infrastructure planning.

1.2.2 Building Queensland

Building Queensland is a statutory body that provides independent, expert advice on major infrastructure to Queensland Government departments, government-owned corporations and nominated statutory authorities. Established under the Building Queensland Act 2015, its core functions are to develop and independently prioritise the State’s infrastructure proposals.

Building Queensland leads the development of detailed business cases with an estimated capital cost of delivery over $100 million and assists with proposals between $50 million and $100 million. Building Queensland also develops the Infrastructure Pipeline Report to assist the Government in determining the projects that will best address the State’s infrastructure priorities. The Infrastructure Pipeline Report provides transparency of key Government proposals under development.

Detailed business cases completed by Building Queensland include the following projects:

• Beerburrum to Nambour Rail Upgrade

• Bruce Highway: Cairns Southern Access Corridor Stage 3 (Edmonton to Gordonvale)

• Bruce Highway: Cairns Southern Access Corridor Stage 4 (Kate Street to Aumuller Street)

• Bruce Highway: Caboolture/Bribie Island Road to Steve Irwin Way

• Bruce Highway: Maroochy Interchange Upgrade

• Cross River Rail

3

Capital Statement 2018-19

• European Train Control System

• Five Schools Package

• Lower Fitzroy River Infrastructure Project

• Public Safety Regional Radio Communications

• Arthur Gorrie Correctional Centre

• The Smithfield Transport Corridor Upgrade

• Townsville Eastern Access Rail Corridor

1.2.3 Queensland Transport and Investment Program (QTRIP)

QTRIP is an annually published program of works that outlines the Department of Transport and Main Roads’ current and planned investments in road and transport infrastructure over the next four years. It includes roads, railways, active transport, marine infrastructure and public transport solutions. The strategic intent of QTRIP 2018-19 to 2021-22 is shaped by the SIP Part A and the Transport Coordination Plan 2017-2027.

QTRIP is developed in accordance with funding allocations identified by the Queensland and Australian Governments, which align to both governments’ policy objectives. QTRIP 2018-19 to 2021-22 four-year total is now $21.7 billion, an increase of approximately $700 million compared to QTRIP 2017-18 to 2020-21.

1.3 Innovative funding and financing

1.3.1 State Infrastructure Fund

The $2.2 billion State Infrastructure Fund (SIF) was established to boost infrastructure investment, increase business confidence and fund priorities in both the SIP and Building Queensland’s Infrastructure Pipeline. Components of the SIF include:

• $200 million for the Priority Economic Works and Productivity Program. Funding has been allocated to the Department of Transport and Main Roads to deliver six high priority transport projects. Located around Queensland, these projects will be progressively delivered through to December 2020.

• $180 million for the Significant Regional Infrastructure Projects Program, now delivering 25 significant social and economic infrastructure projects or programs in key regional centres across Queensland. All projects are forecast for completion by the end of June 2019.

• $30 million for the Maturing the Infrastructure Pipeline Program, which comprises $20 million from the SIF and $10 million from the 2017-18 State Budget. This program facilitates councils to progress projects through the infrastructure planning pipeline so that required infrastructure can be identified, planned, funded and built sooner. This program has enabled maturity assessments of all 141 ‘proposals raised through consultation’ and will support 92 ‘future opportunities’ identified in the 2016 SIP Part B, which inform both state and local government infrastructure planning and budgetary processes.

Further, during 2017-18, the Department of State Development, Manufacturing, Infrastructure and Planning undertook needs analysis and options assessment for an additional 40 infrastructure projects submitted by 22 local governments. The remainder of the initial $20 million SIF allocation and the additional $10 million now funds a new local government infrastructure grant program. This will support local governments to undertake either strategic planning for infrastructure, or business cases and/or detailed design for infrastructure proposals.

4

Capital Statement 2018-19

• $800 million allocated towards the delivery of Cross River Rail and a further $50 million to establish the Cross River Rail Delivery Authority. These initial allocations for Queensland’s number one infrastructure project align with the Government’s priorities to attract investment, build infrastructure and foster innovation.

• $200 million for round one of the Works for Queensland program approved in 2016-17. This stage of the program prioritised regional areas outside South East Queensland which are experiencing higher unemployment rates. The program is delivering jobs through priority maintenance and minor infrastructure works for 65 local governments across Queensland.

The 2017-18 State Budget allocated an additional $200 million over two years for a second Works for Queensland funding round, which was then supplemented by a further $200 million during 2017-18. This brings the total program funding over the five-year period from 2016-17 to 2020-21 to $600 million.

Table 1 shows the programs which are receiving funding through the SIF.

Table 1 State Infrastructure Fund

Program	Total $ million
Maturing the Infrastructure Pipeline Program (MIPP)1		20
Priority Economic Works and Productivity Program2		200
Significant Regional Infrastructure Projects Program		180
Works for Queensland Round One3		200
Cross River Rail4		850
Pacific Motorway (Mudgeeraba - Varsity Lakes)		44
Smithfield Bypass		69
Centenary Motorway Upgrade package		48
Tourism infrastructure		50
Woodford		1
Bruce Highway		128.5
M1 Action Plan		55
Building Better Hospitals5		352.6
Unallocated		1.9
State Infrastructure Fund total		2,200

1. A further $10 million was added to the MIPP as part of the 2017-18 State Budget, but this is not being funded through SIF.

2. $100 million reallocated to the Bruce Highway and M1 Action Plan projects.

3. A further $200 million was added to the Works for Queensland program as part of the 2017-18 State Budget, but this is not being funded through SIF.

4. SIF contribution to the $5.409 billion Cross River Rail project.

5. SIF contribution to the $679 million Building Better Hospitals commitment.

1.3.2 Market-Led Proposals

Market-Led Proposals (MLPs) were introduced in the 2015-16 Budget as part of the Government’s plan to create jobs and stimulate the economy. An MLP is a submission from the private sector seeking a commercial arrangement with Government to provide a service or infrastructure that will meet a community need.

5

Capital Statement 2018-19

MLPs are intended to provide benefits to Government and the Queensland community. They are preferably “low risk – low cost” to Government and must present a clear case for direct negotiation as an alternative to seeking value for money through a competitive process.

The Government needs to be satisfied that no other proposal addressing the same need – or proposing a similar outcome – is under active consideration by the State and that the proposal is a genuine commercial proposition.

Projects which are wholly, or largely, privately funded and of economic or social significance to Queensland or a region, such as those that support a large number of jobs or will generate significant economic activity beyond the project, are highly regarded.

As a result of the recent machinery-of-government changes, MLPs are now administered by the Department of State Development, Manufacturing, Infrastructure and Planning.

Criteria for success

A proposal must meet the following assessment criteria for initial consideration:

• Satisfy a community need and align with Government’s priorities.

• Demonstrate that the public interest is best served by Government negotiating directly with the proponent, rather than by engaging in a competitive process.

• Deliver a value-for-money outcome to the State, which can be determined in the absence of a competitive market.

• Have a proponent with the financial and technical capacity, capability, and experience to deliver the outcome successfully.

If progressed to detailed proposal, this will be assessed to determine that:

• There is an allocation of costs and risks between the proponent and the Government that is acceptable to the State.

• The proposal is technically, commercially, and practically feasible.

A successful MLP will result in the Government contracting directly with a proponent rather than offering the opportunity to the market through a competitive process.

MLPs – Approved proposals

Two MLPs have reached contractual close and are in delivery phase:

Logan Motorway Enhancement Project

Transurban Queensland (TQ), which operates and maintains the Logan, Gateway and Gateway Extension motorways under a long-term agreement with the State, was the first proponent in Queensland to progress to contract award under the Queensland Government’s MLP framework.

TQ’s $512 million enhancement to the Logan and Gateway Extension motorways will provide a range of improvements to the motorways and surrounding roads to improve driver safety, reduce travel times, relieve traffic congestion and enhance connectivity with other major road networks.

The project is expected to support around 1,300 jobs during the two-and-a-half-year construction period and generate around $1 billion (present value) in economic benefits over 30 years.

6

Capital Statement 2018-19

TQ will fully finance the costs of the works and will predominantly fund the project through moderate toll increases for trucks using the Logan and Gateway motorways. There will also be a new toll facility for motorists if they choose to use new south-facing ramps at Compton Road to access and exit the Gateway Extension Motorway.

The project is expected to be completed in mid-2019.

Brisbane International Cruise Terminal

The Port of Brisbane Pty Ltd (PBPL) is capitalising on its experience, capabilities and location to build and operate a new $158 million cruise ship terminal on government land across the river from the existing freight port.

The terminal will cater to the new generation of mega cruise ships, which are unable to access existing infrastructure upstream of the Gateway Bridge. This will provide for an expansion of the cruise ship market in Queensland, stimulating the economy and bringing more tourists to the State.

Over its two-and-a-half-year construction period, the project is expected to support an average of 245 jobs a year and, once operational, safeguard up to 1,250 existing cruise industry jobs and support a further 49 jobs a year.

PBPL has programmed a completion date of April 2020.

MLPs – Projects in the detailed proposal stage

A further five proposals have been assessed as meeting the MLP criteria and have progressed to Stage 2: Detailed planning.

1.3.3 Public-private partnerships

The Queensland Government is engaged in a range of public-private partnerships (PPPs) that often involve the private sector constructing an asset, which is then leased to the public sector.

Whilst a PPP transfers construction and maintenance risk to the private sector, given the arrangement has the public sector effectively retaining the risks and rewards of ownership of an asset, the Government’s financial statements recognise an acquisition under a finance lease and a corresponding finance lease liability. The liability for the proportion of expenditure related to financing and ongoing costs is treated as a borrowing in the State’s balance sheet.

Acquisitions under finance leases and finance lease liabilities are typically recognised once construction has been completed and the lease commences, rather than recognising expenditure and associated borrowings across the construction period as occurs under traditional delivery.

In 2018-19, the value of acquisitions under finance leases is $864 million. Given the significant value of acquisition under finance leases in 2018-19, it is important that this method of infrastructure delivery is recognised as part of the Capital Statement.

Cross River Rail, the Queensland Government’s highest priority infrastructure project, is being delivered through several works packages with a PPP for the Tunnels, Stations and Development Package currently in procurement. This approach optimises risk allocation and provides opportunities for the private sector to provide innovation in relation to the delivery and maintenance of tunnels, stations and over station development to improve outcomes.

7

Capital Statement 2018-19

1.3.4 Other infrastructure investment facilitated by the State

Building our Regions

Building our Regions is a $445 million targeted regional infrastructure program for local government projects. The purpose of the program is to provide funding for critical infrastructure in regional areas of the State that meet the specific needs of communities and supports economic development, including generating jobs.

Of this funding, $150 million was allocated to the Transport Infrastructure Development Scheme (TIDS) to increase the funding delivered through TIDS to regional local governments. These funds are managed by the Department of Transport and Main Roads.

The remaining $295 million has been allocated to the Department of State Development, Manufacturing, Infrastructure and Planning. Of this, the program has allocated almost $225 million across 174 projects, with a further $70 million available under Round 4. Projects that have been shortlisted at the expression of interest stage in Round 4 are expected to be announced mid-2018. Councils will then be invited to submit a detailed application for shortlisted projects.

Works for Queensland

The Works for Queensland program supports local governments outside South East Queensland by funding job-creating maintenance and minor infrastructure projects relating to assets owned or controlled by local governments.

The 2017-18 State Budget allocated an additional $200 million over two years for a second Works for Queensland funding round, which was then supplemented by a further $200 million during 2017-18. This brings the total program funding over the five-year period from 2016-17 to 2020-21 to $600 million.

In 2018-19, $147.8 million will be delivered from these additional funds.

Disaster Resilience Program

Queensland is prone to natural disasters and, while rebuilding after a disaster is important, increasing resilience of our infrastructure to lessen the impacts of natural disasters means that communities can recover more quickly after a natural disaster strikes. Therefore, a critical element of the Government’s infrastructure investment is improving existing infrastructure to improve the resilience of the State’s communities.    

To help foster this enhanced resilience, $9.5 million is allocated in 2018-19 to the Disaster Resilience Fund, a State-funded program delivering $38 million over four years and administered by the Queensland Reconstruction Authority, to support delivery of disaster-mitigation projects and initiatives that build resilience to natural disasters.

8

Capital Statement 2018-19

1.4 Key projects

This section provides an overview of key Queensland Government infrastructure projects and capital works programs.

1.4.1 Delivery phase

Bruce Highway upgrades

Many Queenslanders are dependent on the Bruce Highway for their livelihood and lifestyle. With the Bruce Highway connecting cities and towns over a distance of almost 1,700 kilometres from Brisbane to Cairns, it is essential to maintain and upgrade the Bruce Highway to ensure freight, travel and commuter traffic is safe and efficient.

The Queensland Government will continue to work with the Australian Government to deliver the Bruce Highway Upgrade Program, aimed at improving safety, flood resilience and capacity along its length. Projects are regularly being added to the program’s scope of works, delivering greater benefits for Queensland motorists and businesses.

M1 Pacific Motorway upgrades

A safe, efficient and reliable M1 Pacific Motorway plays an important role in driving productivity and competitiveness across South East Queensland. The Government is delivering several major projects underway on the M1, including the Pacific Motorway/Gateway Motorway Merge project and the Mudgeeraba to Varsity Lakes project, both of which are due for completion in 2020.

In addition, as part of the 2018-19 Budgets, the Queensland and Australian Governments have committed funding for two key projects on the M1 Pacific Motorway: Tugun to Varsity Lakes and Eight Mile Plains to Daisy Hill.

The 10 kilometre section of the M1 Pacific Motorway between Varsity Lakes and Tugun on the Queensland and New South Wales border carries approximately 85,000 vehicles per day, including around 7,500 heavy vehicles. Business case development for the widening of the section from four to six lanes will continue during 2018-19. The indicative total estimated cost for the project of $1.030 billion is subject to review through business case development.

The section of the M1 Pacific Motorway between Eight Mile Plains to Daisy Hill carries in the order of 150,000 vehicles per day, including approximately 12,000 heavy vehicles. Building Queensland is developing a detailed business case for this stretch of the M1 Pacific Motorway, investigating the widening from six to eight lanes, at a total estimated cost of $749 million.

Toowoomba Second Range Crossing

The Toowoomba Second Range Crossing (TSRC) project is a $1.606 billion, 41 kilometre bypass route to the north of Toowoomba, running from the Warrego Highway at Helidon in the east to the Gore Highway at Athol in the west, via Charlton. The project is being jointly funded by the Queensland and Australian Governments on a 20:80 basis.

The project will support up to 1,800 full-time jobs during construction and is expected to improve road and driver safety, reduce travel time across the Range by up to 40 minutes for heavy commercial vehicles and relieve pressure on local roads by redirecting trucks away from Toowoomba’s CBD.

9

Capital Statement 2018-19

In 2015, the Nexus consortium was awarded the contract to deliver the TSRC and will be responsible for its design, construction, financing, operation and maintenance for a period of 25 years following completion, which is expected in 2019. The contract was structured as an availability-based Public Private Partnership, with the State providing upfront funding contributions during the construction stage and ongoing service payments over the 25 year operation and maintenance stage, with the latter dependent on performance.

The TSRC will be a toll road and its use will be mandated for heavy vehicles without a Toowoomba destination.

North Queensland Stadium (NQ Stadium)

The $250 million NQ Stadium project will deliver an iconic, 25,000-seat stadium in Townsville in time for the 2020 NRL season.

The NQ Stadium is a joint project of the Queensland Government, Australian Government, and Townsville City Council and is supported by both the National Rugby League and the North Queensland Cowboys. The stadium forms part of the Townsville City Deal signed in December 2016.

The NQ Stadium is expected to support up to 750 jobs during the construction phase as well as on-going jobs in hospitality, new tourism opportunities and major events. The stadium will also be a catalyst for urban renewal and regeneration for Townsville’s inner city and waterfront.

Construction work has commenced.

Building Better Hospitals

As part of its Building Better Hospitals commitment, the Government will invest $679 million to redevelop three of South East Queensland’s busiest hospitals in Logan, Caboolture and Ipswich, commence planning and business case development for the Wide Bay region and refurbish three Cancer Council Queensland lodges. This investment will help to deliver the critical infrastructure needed to meet the increase in current and future demand for hospitals and other healthcare services in these fast-growing areas.

In rural and regional Queensland, the Government will continue to deliver a range of hospital expansions and upgrades through the Enhancing Regional Hospitals Program, the Advancing Queensland’s Health Infrastructure Program, and the Rural and Regional Infrastructure package.

Building Future Schools and Renewing our Schools

The Government has increased the $500 million Building Future Schools Fund by an additional $308 million, to cater for enrolment growth in high population growth areas. Through the now $808 million Building Future Schools Fund, the Government will build seven new secondary schools, a new special school in the Caboolture area and a new primary school at Ripley. The Government will also begin planning for four additional primary schools, two special schools and a new state high school in growth regions across the State.

For existing state high schools, the Government’s Renewing Our Schools Program will provide an additional $235 million over four years to 2021-22 to substantially refurbish 17 state high schools across the State.

10

Capital Statement 2018-19

Queen’s Wharf Brisbane

The Queen’s Wharf Brisbane development is a private investment of $3.5 billion in the urban renewal of the former government precinct, located on the Brisbane River, that was offered to the market by the Queensland Government, to create an iconic world class tourism offering.

The successful proponent, Destination Brisbane Consortium, will deliver five new premium hotels, three residential towers, in excess of 100 food and beverage and retail outlets, around 12 football fields (11 hectares) of enhanced public open space, the adaptive re-use of heritage buildings in the precinct and the construction of a pedestrian bridge to South Bank.

Consistent with the Government’s focus on job creation, the project will provide significant economic development opportunities for Queensland by supporting more than 2,000 jobs during construction and 8,000 ongoing jobs.

Demolition of the old government office buildings has been completed with excavation works now underway. The integrated resort is expected to open in 2022.

1.4.2 Procurement and planning phase

The Government is committed to the following projects and is currently undertaking procurement and planning works in order to deliver critical infrastructure for Queenslanders.

Cross River Rail

Cross River Rail is a 10.2 kilometre rail line from Dutton Park to Bowen Hills, with 5.9 kilometres of tunnel under the Brisbane River and CBD. Cross River Rail will see four new high capacity and two upgraded stations developed at Boggo Road, Woolloongabba, Albert Street, Roma Street, Dutton Park and the Exhibition showgrounds.

This second rail river crossing will deliver additional trains more often, ease congestion, improve network reliability and increase accessibility to the Brisbane CBD. The Government recognises the significant potential of this infrastructure to boost jobs and economic growth, and add value to commercial and residential development sites across the region. The Government is committed to maximising the benefits that can be achieved through integrated transport and land use development.

The Cross River Rail project’s total cost of delivery is forecast to be $5.409 billion over the period 2016-17 to 2023-24. The Queensland Government is fully funding the delivery of Cross River Rail and has provided the necessary funding, whilst continuing to call on the Australian Government to provide a contribution that reflects the national importance of this project.

During the 2017-18 financial year, the Cross River Rail project has progressed to the early works and procurement phase, with delivery and procurement overseen by the Cross River Rail Delivery Authority. Contractors have been shortlisted for the two major works packages – the Tunnel, Stations and Development PPP and the Rail, Integration and Systems alliance.

In this Budget, $733 million is allocated in 2018-19 for the Delivery Authority to continue to progress the planning, procurement and development associated with the Cross River Rail project. The Government has also continued its commitment to fully fund the Cross River Rail project, with the allocation of $914 million in 2021-22, bringing total funding to $3.726 billion to the end of the forward estimates. A further $1.683 billion will be allocated in future budgets, over the period to 2023-24, to finalise delivery of the project.

11

Capital Statement 2018-19

European Train Control System (ETCS) – Inner City

Implementation of ETCS through the centre of Brisbane’s train network will improve safety and provide capacity to run additional rail services. ETCS – Inner City is critical to facilitate the Cross River Rail project and meet passenger demand while it is being delivered.

The Government has allocated $634.4 million in its capital works program for delivery of ETCS between Milton and Northgate stations. The procurement of ETCS – Inner City has progressed in 2017-18, with the current Early Contractor Involvement procurement process expected to enable contract award in late 2018.

Rookwood Weir

The Rookwood Weir project presents an opportunity to supplement urban water supplies and enhance agricultural and industrial development in the Fitzroy Basin and Gladstone region. The weir could add 76,000 megalitres of water for agricultural production along the Fitzroy River and augment urban and industrial supply for Gladstone, Rockhampton and Livingstone Shire.

Significant steps have been taken throughout the year toward the construction of Rookwood Weir. During 2017-18, Building Queensland publicly released the detailed business case. The Queensland Government has allocated $176 million of funding across the next four years and has welcomed the Australian Government’s matching commitment. This means the capital costs of $352 million for the project are fully funded.

The Queensland Government continues to engage with the Australian Government to formalise the details of the arrangement and to agree on an appropriate split of operational costs for the Rookwood Weir so that procurement can commence in 2018. This would allow construction to commence in 2019.

New Performing Arts Venue at the Queensland Performing Arts Centre

The Queensland Government has committed to deliver a new $150 million state-of-the-art theatre for Brisbane, investing $125 million over four years from 2018-19.

This investment in a new theatre follows the recommendations of the detailed business case for a 1,500 to 1,700 seat theatre at the Playhouse Green site, to be operated by the Queensland Performing Arts Centre (QPAC), which will contribute $25 million to the new venue.

QPAC, which schedules over 1,000 performances annually to which 1.3 million people attended in 2017, is nearing full capacity with a strong forward program of bookings to 2022 and beyond.

The unique opportunity exists to invest in QPAC’s growth to create Queensland’s largest performing arts centre, with five outstanding venues that will further bolster Queensland’s cultural vibrancy, support our local arts sector and drive cultural tourism.

With QPAC operating the new theatre, it can program across all venues to ensure Queensland companies are supported by the best sized theatre and season duration, while also meeting growing demand for musicals.

A national design competition will be undertaken to deliver an outstanding architectural solution for the new theatre. The addition of this new theatre will see QPAC become Australia’s largest performing arts centre with the potential to welcome an additional 300,000 visitors each year when fully operational from 2022.

12

Capital Statement 2018-19

Brisbane Live

Brisbane Live proposes the establishment of a world class integrated entertainment and transport precinct at Roma Street, including a 17,000-seat entertainment arena, to be developed in conjunction with the precinct redevelopment for Cross River Rail.

An allocation of $5 million in 2018-19 will enable the Cross River Rail Delivery Authority to progress the Brisbane Live proposal as part of its precinct planning for Roma Street. Building Queensland will undertake an independent business case assessment of the proposal, with support from the Delivery Authority.

Port of Townsville Channel Capacity Upgrade

The Port of Townsville Limited (POTL) is proposing to widen the existing Platypus Channel and Sea Channel connection to the Port to allow larger vessels safe access, at an estimated cost of $193 million. The Queensland Government is investing $75 million into the project and is seeking matching funding from the Australian Government, with POTL funding $43 million.

As well as widening the channels, associated works include construction of rock walls and revetments to form receiving ponds for the beneficial re-use of dredge material, establishing a quarry to supply marine-grade armour rock required for rock walls and revetments, and installing navigation aids aligned with the new channel configuration. The POTL intends to beneficially re-use capital dredge material consistent with the Sustainable Ports Development Act 2015.

North Coast Line – Beerburrum to Nambour Rail Project

The Queensland Government is providing $160.8 million over four years towards the Beerburrum to Nambour rail duplication project to address the infrastructure and capacity constraints on this section of the North Coast Line. Detailed design will commence in 2018-19, with construction to be delivered in stages based on further negotiations with the Australian Government. The Australian Government has provided an initial $390 million over five years towards the project.

New Public Transport Ticketing System

The State has provided $371.1 million for a new public transport ticketing system that will be delivered across public transport over the next four years. The system will add new customer facing functionality including payment by contactless debit and credit cards, mobile phones and wearables in addition to go card and paper tickets.

13

Capital Statement 2018-19

1.5 Highlights by asset class

This section provides highlights by asset class for the 2018-19 capital program. The asset classes are based on the SIP.

1.5.1 Transport

In 2018-19, the total capital program for transport is forecast to be $4.950 billion including total capital grants of $239.3 million. This includes the Department of Transport and Main Roads, Queensland Rail, Far North Queensland Ports Corporation Limited, Gladstone Ports Corporation Limited, North Queensland Bulk Ports Corporation Limited, Port of Townsville Limited, RoadTek, the Gold Coast Waterways Authority and the Cross River Rail Delivery Authority. The Department of Transport and Main Roads will spend $89.2 million in 2018-19 for the new public transport ticketing system.

Roads

Highlights of the 2018-19 roads capital program include:

• $147.3 million towards M1 Pacific Motorway upgrades, including:

• $70 million to construct additional lanes on the Pacific Motorway between Mudgeeraba and Varsity Lakes, in partnership with the Australian Government, at a total estimated cost of $197.5 million.

• $50 million to upgrade the Pacific Motorway/Gateway Motorway Merge, in partnership with the Australian Government, at a total estimated cost of $190 million.

• $17 million to upgrade approximately nine kilometres of the Pacific Motorway between Eight Mile Plains and Daisy Hill to reduce congestion and travel times, in partnership with the Australian Government, at a total estimated cost of $749 million.

• $5 million for the widening of the section from four to six lanes between Varsity Lakes and Tugun, at a total estimated cost of $1.030 billion.

• $200 million to duplicate the Bruce Highway from four to six lanes, Caloundra Road to the Sunshine Motorway, at a total estimated cost of $812.9 million, in partnership with the Australian Government.

• $115 million to construct the Mackay Ring Road (Stage 1), at a total estimated cost of $497.4 million, in partnership with the Australian Government.

• $45 million to widen the Gateway Motorway North to six lanes, at a total cost of $1.143 billion, in partnership with the Australian Government.

• $44.1 million to widen the seal and to apply wide centre line treatment at various locations on the Warrego Highway between Dalby and Miles, at a total cost of $63.6 million.

• $40 million to duplicate from two to four lanes on the section of the Bruce Highway (Rockhampton Northern Access) between Rockhampton-Yeppoon Road intersection and Terranova Drive, North of Rockhampton, at a total cost of $121 million, in partnership with the Australian Government.

• $534.3 million to continue the Toowoomba Second Range Crossing project, a bypass route to the north of Toowoomba, approximately 41 kilometres in length, running from the Warrego Highway at Helidon to the Gore Highway at Athol, via Charlton, at a total cost of $1.606 billion, in partnership with the Australian Government.

14

Capital Statement 2018-19

• $70 million of infrastructure development grants to local governments including Aboriginal and Torres Strait Islander community assistance.

• $68 million to provide a three kilometre upgrade of the Ipswich Motorway between Granard Road, Rocklea and Oxley Road, Oxley at a total cost of $400 million, in partnership with the Australian Government.

Rail

The 2018-19 rail capital program totals $1.807 billion. Highlights of the program include:

• $733 million to continue to progress the planning, procurement, and development associated with the Cross River Rail project.

• $472.3 million to continue delivery of 75 new six-car sets and services over a 32-year period for the New Generation Rollingstock to meet growing demand for rail services in South East Queensland, as well as further $35.3 million to support the delivery of the New Generation Rollingstock into service.

• $237.4 million for network investment including track infrastructure, civil structures, signalling and other network assets.

• $88.8 million for rail operations investment including rollingstock overhauls, operational facilities, and other rail operations assets.

• $43.3 million to upgrade (or improve) station accessibility at various train stations including Strathpine, Boondall, Morayfield, Southbank, Dakabin, Cannon Hill, Buranda, Fairfield, Albion, East Ipswich and Loganlea Stations, at a total estimated cost of $230.9 million.

• $35.4 million to implement the European Train Control System – Inner City, at a total estimated cost of $634.4 million.

• $21.9 million to upgrade the capacity of the North Coast Rail Line to increase productivity and efficiency of freight transport, at a total estimated cost of $82.7 million.

• $19.6 million to improve customer experience, maintain service continuity and build network resilience on the Townsville – Mount Isa Rail Line.

• $14.7 million to revitalise and modernise Brisbane’s Central Station to improve the customer experience and cater for future growth, at a total estimated cost of $65.9 million.

• $14.4 million out of the Queensland Government’s contribution of $160.8 million towards the Beerburrum to Nambour rail duplication project to address the infrastructure and capacity constraints on this section of the North Coast Line.

Ports

The 2018-19 ports capital program totals $181.2 million. Highlights of the program include:

• $83.5 million towards ongoing development of the Port of Gladstone and additional works at the Port of Bundaberg and the Port of Rockhampton, including $35.6 million towards continuing upgrades at the RG Tanna Coal Terminal at the Port of Gladstone, at a total cost of $220.3 million.

• $75.1 million towards ongoing development at the ports of Townsville and Lucinda, including $44.3 million of a Queensland Government contribution of $75 million to continue preparatory and initial works to widen Townsville’s shipping channel to allow larger vessels to access the Port of Townsville, at a total project cost of $193.5 million.

15

Capital Statement 2018-19

• $15 million to continue port planning and development initiatives to meet industry requirements for export facilities at North Queensland ports.

• $7.5 million towards new and continuing development of ports in Far North Queensland, including $2 million to continue to develop the Tingira Street Precinct in Cairns, at a total cost of $17.9 million.

1.5.2 Energy

The 2018-19 energy capital program is $2.178 billion. The capital program supports the Government’s commitment to deliver cost-effective, safe, secure and reliable energy.

Highlights of the energy portfolio’s 2018-19 capital program include:

• $1.461 billion of capital purchases by Energy Queensland Limited as a part of its commitment to providing a safe, secure and highly reliable electricity supply to all Queensland customers that is both cost effective and dependable. This includes $29 million in 2018-19 to continue work on the multi-stage SunCoast Power Project to increase network capacity and improve reliability on the Sunshine Coast.

• $232.7 million of capital purchases by Powerlink, Queensland’s high voltage electricity transmission entity, predominantly focused on refit or replacement of aged equipment and assets. This includes the $8.7 million refit in 2018-19 of the Collinsville-Proserpine Transmission Line in North Queensland, to ensure continued reliable supply of electricity.

• $225.5 million of capital purchases by CS Energy, reflecting its continued commitment to ongoing reliability and efficiency of generation plant at its power station sites. This includes $104.6 million in 2018-19 to improve the Callide Power Station and $90.5 million in 2018-19 to improve the Kogan Creek Power Station.

• $208.6 million of capital purchases by Stanwell Corporation, which primarily relates to replacement, refurbishment and upgrades to plant and equipment at the various Queensland power station sites, such as the planned $39.9 million major overhaul of the Tarong Power Station in 2018-19.

• Up to $50 million to support the development of concentrated solar thermal with storage projects to provide clean and baseload power.

1.5.3 Water

The 2018-19 water capital program is $277 million. The capital program supports the Government’s commitment to deliver cost-effective, safe, secure and reliable water supply.

Highlights of the water portfolio’s 2018-19 capital program include:

• $147.2 million of capital purchases by Seqwater to continue a safe, secure and reliable water supply for South East Queensland, as well as providing essential flood mitigation services and managing catchment health.

• $66 million to commence construction of Rookwood Weir to supplement urban water supplies and enhance agricultural and industrial development in the Fitzroy Basin and Gladstone region to provide drought contingency supplies, out of a $352 million total capital spend.

16

Capital Statement 2018-19

• $25.6 million of capital purchases by SunWater with a focus on the continuation of a reliable bulk water supply for regional Queensland and ensuring SunWater’s dams are enhanced to meet the extreme weather events that the State can experience.

• $31.8 million of capital purchases by the Gladstone Area Water Board and Mount Isa Water Board to continue effective operations of the water boards’ property, plant and equipment.

1.5.4 Health

Total capital purchases in 2018-19 for the health portfolio are $985.5 million. The 2018-19 capital program includes investment in health infrastructure, capital works and purchases across a broad range of areas including hospitals, ambulance stations and vehicles, health technology, research and scientific services, mental health services, staff accommodation and information and communication technology.

Highlights of the 2018-19 capital program for the health portfolio include:

• $84.8 million as part of the Enhancing Regional Hospitals Program, to continue upgrades to the Hervey Bay and Gladstone Emergency Departments, repurpose the Caloundra Health Service and redevelop the Roma Hospital.

• $80 million under the Priority Capital Program to be distributed across Hospital and Health Services and Health Support Queensland for a range of capital works projects to enhance, refurbish or replace existing infrastructure and to sustain and improve business and service level continuity.

• $53.3 million to continue delivery of projects as part of the Rural and Regional Infrastructure package, including redevelopment of Blackall Hospital, Sarina Hospital, Kingaroy Hospital and Townsville Hospital Clinical Services, construction of a new Cairns Mental Health Unit, Mer (Murray) Island Building and staff accommodation across the State, and delivery of a Maryborough Hospital Emergency Department and Specialist Outpatients Department.

• $28.7 million as part of the $679 million Building Better Hospitals program, to redevelop Logan (including a new maternity ward), Caboolture and Ipswich hospitals, commence planning and business case development for the Wide Bay region and refurbish three Cancer Council Queensland lodges.

• $28.1 million to establish a new Adolescent Extended Treatment Facility at The Prince Charles Hospital, two new Adolescent Step Up Step Down units in Brisbane, and to refurbish two Adolescent Day Program spaces at Logan and the Gold Coast, at a total estimated cost of $68.2 million.

• $26.6 million as part of the Advancing Queensland’s Health Infrastructure Program, at a total estimated cost of $230 million. The program facilitates essential upgrades to health facilities and supporting infrastructure across Queensland, including repurposing of the Nambour General Hospital, redevelopment of Atherton Hospital Emergency Department and operating theatres and redevelopment of the Thursday Island Hospital.

• $15.1 million for the Queensland Ambulance Service to invest in vehicles and stretchers including commissioning 85 new and replacement ambulance vehicles and continuing the rollout of power-assisted stretchers.

17

Capital Statement 2018-19

1.5.5 Education and Training

The education portfolio will make capital purchases of $674.3 million in 2018-19. This includes the construction and refurbishment of school educational facilities, early childhood education and care services.

Total capital purchases for the training portfolio, including the Department of Employment, Small Business and Training and TAFE Queensland, are $57.4 million in 2018-19.

Highlights of the education and training capital programs include:

• $125.2 million as part of the $250 million for new classrooms and other infrastructure in state secondary schools to accommodate the six full cohorts in 2020.

• $122.5 million to undertake new stages for recently opened schools and provide additional classrooms at existing schools in growth areas throughout the State.

• $98.5 million in capital grants to the non-state schooling sector and student hostels.

• $94.5 million as part of the $808 million Building Future Schools Fund to deliver world class learning environments for students and address enrolment growth pressures in state schools.

• $84.2 million to replace and enhance facilities at existing schools.

• $47 million as part of $97 million in total funding for the Advancing Clean Energy Schools program to upgrade and install solar and energy efficiency measures in state schools.

• $30 million out of the up to $85 million over three years, committed as part of the election commitment for the Advancing Our Training Infrastructure initiative to redevelop, refurbish and expand key high-need TAFE facilities.

• $17.3 million to renew and grow Queensland’s training assets required for delivery of priority skills training that supports workforce and economic development.

• $15 million as part of $235 million in total funding for the Renewing Our Schools program to substantially refurbish and upgrade 17 schools across the State.

• $8 million as part of $25.6 million in total funding to conduct upgrades and renewal works at 31 state schools.

1.5.6 Digital

The 2018-19 capital program features a range of projects designed to facilitate improvements in the State’s digital infrastructure.

Highlights across Government include:

• $164.2 million to be invested in 2018-19 prioritised information and communication technology categories to ensure continued efficiency of the Queensland Health system. This will include investment in core infrastructure to support digital hospitals, replacement and enhancement of core clinical systems to support frontline health service provision and decision making at the point of care.

• $22.6 million to help deliver a modern statewide Laboratory Information System, at a total estimated cost of $60.9 million.

18

Capital Statement 2018-19

• $8.9 million to support Queensland Ambulance Service information and communication technology.

• $8.5 million to acquire new and/or replace state-of-the-art scientific equipment by the Queensland Institute of Medical Research.

• $8.4 million to expand and upgrade existing audio visual capacity in the justice system, which includes video conferencing and in-custody court appearances.

• $8.3 million to implement an online Blue Card application system.

• $2 million to design and plan a single TAFE Queensland IT network and Wi-Fi upgrade.

1.5.7 Justice and Public Safety

The 2018-19 Budget provides significant investment in capital purchases to support the delivery of essential justice and public safety services to Queensland communities.

Highlights of the 2018-19 justice and public safety capital program include:

• $55 million to refurbish, upgrade or replace police facilities across the State.

• $44.3 million for replacement and new urban and rural fire appliances.

• $31.8 million to continue to replace rotary-wing aircraft, which deliver aeromedical retrieval and transfer services and perform search and rescue and disaster response operations.

• $30 million for new and replacement police service vehicles.

• $29.8 million to replace or upgrade urban and rural fire and emergency and state emergency services facilities across Queensland.

��� $19 million to support the transition of 17 year olds into the Youth Justice system (including for zonal fencing and an additional 12 beds at the Cleveland Youth Detention Centre), at a total estimated cost of $26 million.

• $13.9 million to upgrade courthouses at Rockhampton, Beenleigh and Townsville, at a total estimated cost of $32 million.

• $10.6 million to continue construction of the Counter-Terrorism and Community Safety Training Centre at Wacol, at a total estimated cost of $46.7 million.

In addition, $167.8 million of capital purchases will be provided in 2018-19 primarily for prison infrastructure, perimeter security upgrades, correctional centre enhancements and security management system upgrades. These capital purchases include:

• $107 million to provide an additional 348 cells at Capricornia Correctional Centre, at a total estimated cost of $241 million.

• $20.5 million to continue upgrading perimeter security at a number of correctional centres, at a total estimated cost of $76.6 million.

• $3.7 million to redevelop the Borallon Training and Correctional Centre, at a total estimated cost of $126.9 million.

19

Capital Statement 2018-19

1.5.8 Arts, Culture and Recreation

Significant investment is provided in 2018-19 for arts, culture and recreation. Highlights of this investment include:

• $120 million to develop the North Queensland Stadium.

• $37.3 million under the Get Playing Places and Spaces and Get Playing Plus programs and other various grants to provide for new or upgraded sport and recreation infrastructure and participation projects to support Queensland children and healthy communities.

• $26.6 million in 2018-19 to support sport and recreation clubs at the grassroots through the delivery of infrastructure projects including the Underwood Sports Park, the University of the Sunshine Coast Stadium and the Zillmere Sports Centre.

• $15.6 million out of a total estimated cost of $44 million to complete construction of the Queensland State Netball Centre, in partnership with the Australian Government.

• $13.5 million to redevelop the Mon Repos Turtle Centre.

• $9.5 million to meet the Queensland Government’s contribution toward the $35 million refurbishment of the Thomas Dixon Centre and to manage costs and associated works required to maintain and preserve the heritage-listed centre.

• The Government is providing additional funding of $8 million over two years, held centrally, to the Rockhampton Regional Council for the construction of the new Rockhampton Art Gallery, subject to the confirmation of a $10 million contribution from the Australian Government.

• $7.5 million to support ecotourism opportunities and tourism recovery in the Whitsunday Islands National Park.

• $5.8 million for the Great Keppel Island Recovery Package to deliver major tourism infrastructure improvements such as power and water connections to the mainland.

• $5 million to build a new $150 million performing arts venue at the Queensland Performing Arts Centre, benefitting Queensland artists and audiences.

• $5 million capital grant towards the construction of the Cairns Performing Arts Centre.

• $4.9 million to address critical infrastructure upgrade works at the Queensland Museum and installation of two further cooling towers within the Central Energy Plant at the Queensland Cultural Centre, South Bank.

• $4.7 million to enhance critical infrastructure to support ecotourism activities at Glasshouse Mountain National Park, Noosa National Park and D’Aguilar National Park.

1.5.9 Social Housing

Social housing is provided by the Queensland Government and non-government organisations to assist people who are unable to secure and sustain accommodation in the private market. The Government’s capital investment in social housing in 2018-19 includes:

• $339.1 million towards construction of new dwellings and upgrades to existing social housing properties.

• $103.6 million of capital grants to assist non-government organisations and Aboriginal and Torres Strait Islander communities to construct and upgrade social housing dwellings.

20

Capital Statement 2018-19

This capital investment includes $124.2 million for social housing in Aboriginal and Torres Strait Islander communities to deliver social housing dwellings, upgrade existing housing, and support transfer of social housing for home ownership on Indigenous land. Delivery of social housing in Aboriginal and Torres Strait Islander communities may need to be amended in recognition of the end of the National Partnership on Remote Housing funding, pending further negotiations with the Australian Government.

Under the Queensland Housing Strategy 2017-2027, the Department of Housing and Public Works delivers a range of programs that support the supply and improvement of social housing dwellings. In particular, the Housing Construction Jobs Program will fund the commencement of up to 599 social housing dwellings in 2018-19.

21

Capital Statement 2018-19

2 2018-19 Capital program overview

2.1 Introduction

Over the forward estimates period, the Queensland Government has allocated $45.769 billion to provide essential infrastructure and capital works across the State, contributing to the ongoing transformation of the State’s cities and supporting ongoing growth of regional economies.

In 2018-19, the Palaszczuk Government will deliver a $11.583 billion capital program, up from $10.171 billion allocated for the 2017-18 capital program in last year’s Budget The capital works program in 2018-19 is estimated to directly support more than 38,000 jobs, equating to around 33,000 full time equivalent jobs.

The 2018-19 capital program is comprised of $9.922 billion of purchases of non-financial assets (PNFA) and acquisitions of non-financial assets under finance leases and $1.661 billion of capital grants expenses.

The 2018-19 Budget also highlights the Government’s commitment to deliver critical infrastructure to meet the needs of Queenslanders throughout all regions of the State. The capital program in regional Queensland will be $5.597 billion in 2018-19, up from $4.811 billion in 2017-18 in last year’s Budget.

Around 65 per cent of the total capital program in 2018-19 will be spent outside of Greater Brisbane (Brisbane, Logan and Ipswich).

An important component of the Government’s capital program is undertaken through the Public Non-financial Corporations (PNFC) sector (that is, commercial entities of government, including government-owned corporations). Capital purchases by the PNFC sector in 2018-19 will comprise 27.1 per cent of the total capital program, reflecting major investments in port and rail infrastructure, as well as in the energy sector.

The Government has implemented a clear focus on improving the timely delivery of essential infrastructure for Queensland. This has resulted in an improvement in the amount of capital expenditure delivered, with the proportion of budgeted capital purchases actually delivered in 2016-17 being the highest in the past five years. Further improvement is anticipated in 2017-18, with more than 90 per cent of budgeted capital purchases expected to be delivered, compared with the average of 85 per cent for the past five years from 2012-13 to 2016-17.

22

Capital Statement 2018-19

2 Capital Statement 2018-19

2.2 Capital purchases

The Queensland Government is investing to provide essential infrastructure and capital works to meet the increasing service needs of Queenslanders and promote increased productivity and efficiency for the State’s industries.

The 2018-19 capital program is comprised of $9.922 billion of PNFA and acquisitions of non-financial assets under finance leases.

Capital purchases by purpose in 2018-19 are shown in Chart 1. Transport continues to account for the largest share of purchases, followed by energy, health and community services, and education and training.

Chart 1 Capital purchases by purpose 2018-19

23

Capital Statement 2018-19

Table 2 shows capital purchases by Queensland Government entity, including the 2017-18 year (estimated actual) and the Budget for 2018-19. Transport and Main Roads has the largest proportion of total capital purchases.

Table 2 Capital purchases for 2018-19 by Queensland Government entity^1,2

Entity	2017-18 Est. Actual $‘000			2018-19 Budget $‘000
Aboriginal and Torres Strait Islander Partnerships		495			6,473
Agriculture and Fisheries		20,875			23,191
Child Safety, Youth and Women		27,511			49,589
Communities, Disability Services and Seniors		14,247			17,001
Education		626,954			674,301
Electoral Commission of Queensland		3,083			3,381
Employment, Small Business and Training		34,231			57,400
Environment and Science		62,468			102,391
Housing and Public Works		460,008			459,662
Innovation, Tourism Industry Development and the Commonwealth Games		2,180			196
Justice and Attorney-General		98,463			75,728
Legislative Assembly of Queensland		6,798			9,214
Local Government, Racing and Multicultural Affairs		18,855			3,290
Natural Resources, Mines and Energy
Natural Resources, Mines and Energy		16,009			90,996
Energy Generation		251,236			434,030
Energy Transmission and Distribution		1,566,777			1,693,844
Water Distribution and Supply		217,099			204,658
Premier and Cabinet		3,232			1,047
Public Safety Business Agency3		240,015			254,082
Queensland Corrective Services		46,994			167,752
Queensland Fire and Emergency Services		6,200			5,750
Queensland Health		798,792			985,479
Queensland Police Service		24,448			20,124
Queensland Treasury
Queensland Treasury		13,712			6,125
Cross River Rail Delivery Authority		129,204			733,000
State Development, Manufacturing, Infrastructure and Planning		131,849			232,853
Transport and Main Roads
Transport and Main Roads		3,117,653			3,208,813
Queensland Rail		582,404			587,472
Port Authorities		115,385			181,246
Other Agencies4		24,783			1,596
Other Adjustments5		(97,029	)		280,825
Anticipated Contingency Reserve6		(350,000	)		(650,000	)
Total Capital Purchases		8,214,931			9,921,509

24

Capital Statement 2018-19

Total Capital Purchases Breakdown	2017-18 Est. Actual $‘000		2018-19 Budget $‘000
Consisting of:
Purchases of non-financial assets per Non-financial Public Sector Cash Flow Statement (BP2 Table 9.9)		7,655,729		9,057,206
New finance leases		559,202		864,303
Total Capital Purchases		8,214,931		9,921,509

Notes

1. Includes all associated statutory bodies.

2. Numbers may not add due to rounding.

3. The Public Safety Business Agency is a capital purchaser for Queensland Fire and Emergency Services, Queensland Police Service and the Office of the Inspector-General Emergency Management.

4. Includes other Government entities with non-material capital programs.

5. Representing Inter-agency eliminations, movements in capital payable and receivable, funds held centrally and other accounting adjustments to align with Uniform Presentation Framework Statements.

6. Contingency recognises that on a whole-of-Government basis, there is likely to be under spending, resulting in a carryover of capital allocations.

25

Capital Statement 2018-19

Table 3 shows capital purchases by Regional Action Plan (RAP) region and statistical area. Around $4.506 billion of total capital purchases are allocated to regional Queensland (Central Queensland, Darling Downs, Far North Queensland, Mackay – Whitsunday, Outback Queensland, Townsville and Wide Bay) in 2018-19, up from $3.760 billion in 2017-18 in last year’s Budget.

Around 62 per cent of capital purchases in 2018-19 will be spent outside of Greater Brisbane (Brisbane, Logan and Ipswich).

Table 3 Capital purchases by RAP region and statistical area for 2018-19^1,2

Regional Action Plan Region	Capital Purchases $‘000		Statistical Area			Capital Purchases $‘000
Brisbane		2,536,477		301	Brisbane East		158,097
				302	Brisbane North		339,651
				303	Brisbane South		370,569
				304	Brisbane West		186,363
				305	Inner Brisbane		1,481,797
Ipswich3		925,006		310	Ipswich		925,006
Wide Bay		488,365		319	Wide Bay		488,365
Darling Downs		1,154,155		307	Darling Downs Maranoa		394,937
				317	Toowoomba		759,218
Gold Coast		583,487		309	Gold Coast		583,487
Logan		298,341		311	Logan Beaudesert		298,341
Mackay-Whitsunday		452,750		312	Mackay		452,750
Outback Queensland4		243,000		315	Outback		344,005
Far North Queensland4		512,927		306	Cairns		411,922
Central Queensland		918,233		308	Fitzroy		918,233
Sunshine Coast and Moreton Bay		1,072,539		316	Sunshine Coast		722,842
				313	Moreton Bay North		183,612
				314	Moreton Bay South		166,085
Townsville		736,229		318	Townsville		736,229
Total Capital Purchases							9,921,509

Notes

1. Numbers may not add due to rounding.

2. The Anticipated Contingency Reserve and other adjustments have been spread across statistical areas proportionate to capital spends.

3. Capital purchases allocated to the Ipswich region include capital purchases related to the New Generation Rollingstock project, consistent with the approach adopted in previous State budgets.

4. $101 million of capital purchases in the Outback statistical area belongs to the Far North Queensland region.

26

Capital Statement 2018-19

2.3 Capital grants

The Queensland Government provides grants for capital purposes to a range of organisations and private individuals.

Capital grants to local governments (LG), non-government organisations (NGOs) and individuals are illustrated in Chart 2 below. Capital grants are expected to be $1.661 billion in 2018-19, the largest of which are capital grants to local governments for transport.

Chart 2 Capital grants by purpose and recipient

27

Capital Statement 2018-19

Table 4 shows the planned expenditure on capital grants by Queensland Government entity for 2018-19. State Development, Manufacturing, Infrastructure and Planning has the highest amount of capital grants.

Table 4 Expenditure on capital grants by Queensland Government entity for 2018-19^1,2

Entity	2017-18 Est. Actual $‘000		2018-19 Budget $‘000
Aboriginal and Torres Strait Islander Partnerships		12,653		13,607
Agriculture and Fisheries		3,292		1,679
Child Safety, Youth and Women		400		500
Communities, Disability Services and Seniors		2,754		3,138
Education		92,675		98,501
Environment and Science		9,508		6,965
Housing and Public Works		68,780		182,518
Innovation, Tourism Industry Development and the Commonwealth Games		10,932		34,484
Local Government, Racing and Multicultural Affairs		328,617		316,692
Natural Resources, Mines and Energy		—		50,000
Premier and Cabinet		5,000		1,015
Queensland Fire and Emergency Services		897		897
Queensland Treasury		210,897		139,725
State Development, Manufacturing, Infrastructure and Planning		365,376		487,301
Transport and Main Roads		231,964		239,338
Other Adjustments3		80,273		84,909
Total Capital Grants		1,424,018		1,661,269

Notes

1. Includes associated statutory bodies.

2. Numbers may not add due to rounding.

3. Includes assets transferred, funds held centrally and other technical accounting adjustments.

28

Capital Statement 2018-19

Table 5 shows expenditure on capital grants by RAP region and statistical area. Around $1.091 billion of total capital grants are allocated to regional Queensland (Central Queensland, Darling Downs, Far North Queensland, Mackay – Whitsunday, Outback Queensland, Townsville and Wide Bay) in 2018-19, up from $1.051 billion in 2017-18 in last year’s Budget.

Around 79 per cent of capital grants in 2018-19 will be spent outside of Greater Brisbane (Brisbane, Logan and Ipswich).

Table 5 Capital grants by RAP region and statistical area for 2018-19^1,2

Regional Action Plan Region	Grants $‘000		Statistical Area			Grants $‘000
Brisbane		187,895		301	Brisbane East		33,571
				302	Brisbane North		33,207
				303	Brisbane South		47,270
				304	Brisbane West		25,937
				305	Inner Brisbane		47,910
Ipswich		88,686		310	Ipswich		88,686
Wide Bay		103,344		319	Wide Bay		103,344
Darling Downs		91,480		307	Darling Downs Maranoa		54,202
				317	Toowoomba		37,278
Gold Coast		96,886		309	Gold Coast		96,886
Logan		65,152		311	Logan Beaudesert		65,152
Mackay-Whitsunday		153,395		312	Mackay		153,395
Outback Queensland3		244,939		315	Outback		365,722
Far North Queensland3		266,786		306	Cairns		146,003
Central Queensland		125,928		308	Fitzroy		125,928
Sunshine Coast and Moreton Bay		131,707		316	Sunshine Coast		61,820
				313	Moreton Bay North		38,817
				314	Moreton Bay South		31,070
Townsville		105,071		318	Townsville		105,071
Total Capital Grants							1,661,269

Notes

1. Numbers may not add due to rounding.

2. The adjustments referred to in Table 4 have been spread across statistical areas proportionate to allocation of Grants.

3. $120.8 million of capital grants in the Outback statistical area belongs to the Far North Queensland region.

Chart 3 shows the distribution of the total 2018-19 capital program (capital purchases and capital grants) across the geographical regions of Queensland, as classified for Budget Paper 3 purposes.

29

Capital Statement 2018-19

Chart 3 Map of capital program by Queensland regions

Note: Boundaries are based on ASGS 2011

30

Capital Statement 2018-19

3 Capital outlays by entity

3.1 ABORIGINAL AND TORRES STRAIT ISLANDER PARTNERSHIPS

Department of Aboriginal and Torres Strait Islander Partnerships

Total capital purchases for the Department of Aboriginal and Torres Strait Islander Partnerships are estimated to be $6.5 million in 2018-19. Total capital grants for the department are estimated to be $13.6 million in 2018-19.

Program Highlights (Property, Plant and Equipment)

• $6 million to acquire land to support the Cape York Peninsula Tenure Resolution Program, which returns ownership and management of land on Cape York to traditional owners.

• $473,000 for other property, plant and equipment.

Program Highlights (Capital Grants)

• $13.6 million to develop infrastructure in remote and discrete Aboriginal and Torres Strait Islander communities, including $4 million for Splash parks in the Cape York Communities of Pormpuraaw, Napranum and Mapoon, and $1.2 million for the Kowanyama Men’s Shed and Women’s Meeting Place.

Aboriginal and Torres Strait Islander Partnerships
Project	Statistical Area		Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
DEPARTMENT OF ABORIGINAL AND TORRES STRAIT ISLANDER PARTNERSHIPS
Property, Plant and Equipment
Cape York Peninsula Tenure Resolution Program land acquisitions		315		6,000				6,000
Other property, plant and equipment		Various						473		Ongoing
Total Property, Plant and Equipment								6,473
Capital Grants
Indigenous land and infrastructure programs		Various		117,261		103,654		13,607
Total Capital Grants								13,607
TOTAL ABORIGINAL AND TORRES STRAIT ISLANDER PARTNERSHIPS (PPE)								6,473
TOTAL ABORIGINAL AND TORRES STRAIT ISLANDER PARTNERSHIPS (CG)								13,607

31

Capital Statement 2018-19

3.2 AGRICULTURE AND FISHERIES

Department of Agriculture and Fisheries

Capital purchases and grants for the Department of Agriculture and Fisheries, reporting to the Minister for Agricultural Industry Development and Fisheries are $22.1 million for 2018-19. The department’s capital program is focused on developing and upgrading research facilities to deliver outcomes for agriculture, biosecurity, fisheries and forestry.

The department has facilities located throughout rural and regional Queensland. These require continual minor works, mechanical items and plant and equipment upgrades to keep them operating effectively.

Program Highlights (Property, Plant and Equipment)

• $5.5 million to continue upgrades to the department’s research and operational facilities through the Research Facilities Development, Scientific Equipment and Minor Works Programs.

• $3 million to upgrade and refurbish existing facilities at Toowoomba, which will enhance service delivery and improve operational efficiencies.

• $2.5 million to provide new and replacement heavy plant and equipment including trucks, tractors, irrigators, all-terrain vehicles and other machinery.

• $1.1 million to continue to replace vessels and marine equipment for fisheries research and regulatory functions.

• $1 million to commence restoration of the heritage listed Jimna Fire Tower located outside Kilcoy.

• $406,000 for leasehold fitout replacements to the Ecosciences and Health and Food Sciences precincts.

Program Highlights (Capital Grants)

• $879,000 to the Royal Society for the Prevention of Cruelty to Animals (RSPCA) Queensland to upgrade facilities in North Queensland.

• $500,000 to the Queensland Country Women’s Association (QCWA) to preserve heritage halls in rural and regional Queensland.

• $300,000 to the Paws and Claws animal welfare organisation to assist with the purchase of land for relocation of its current shelter facilities.

32

Capital Statement 2018-19

Queensland Racing Integrity Commission

Capital purchases for the Queensland Racing Integrity Commission, reporting to the Minister for Local Government, Minister for Racing and Minister for Multicultural Affairs are $2.8 million for 2018-19. The capital program is focused upon laboratory upgrades to support core services provided to the Queensland racing industry.

Agriculture and Fisheries
Project	Statistical Area	Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
DEPARTMENT OF AGRICULTURE AND FISHERIES
Property, Plant and Equipment
Upgrade and Refurbishment of Existing Facilities at Toowoomba	317		7,350		3,202		2,950		1,198
Computer Equipment	305						4,965		Ongoing
Heavy Plant and Equipment	Various						2,500		Ongoing
Scientific Equipment	Various						2,500		Ongoing
Minor Works	Various						2,000		Ongoing
Vessels and Marine Equipment	Various						1,100		Ongoing
Research Facilities Development	Various						1,000		Ongoing
Jimna Fire Tower Restoration Project	313		1,500				1,000		500
Portfolio Activity Reporting Information System Software	305		600				600
Software Purchases and Development	305						200		Ongoing
Ecosciences and Health and Food Sciences Precincts Fitout Replacement Program	Various						406		Ongoing
Other Property, Plant and Equipment	Various						1,156		Ongoing
Total Property, Plant and Equipment							20,377
Capital Grants
Royal Society for the Prevention of Cruelty to Animals Capital Grant	Various		3,000		2,121		879
Queensland Country Women’s Association Heritage Halls Capital Grant	307		1,000		500		500
Paws and Claws Capital Grant	306		300				300
Total Capital Grants							1,679

33

Capital Statement 2018-19

Agriculture and Fisheries
Project	Statistical Area		Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
QUEENSLAND RACING INTEGRITY COMMISSION
Property, Plant and Equipment
Racing Science Centre Laboratory Technology Upgrades		305		8,717		2,711		2,814		3,192
Total Property, Plant and Equipment								2,814
TOTAL AGRICULTURE AND FISHERIES (PPE)								23,191
TOTAL AGRICULTURE AND FISHERIES (CG)								1,679

34

Capital Statement 2018-19

3.3 CHILD SAFETY, YOUTH AND WOMEN

Department of Child Safety, Youth and Women

Total capital purchases for the Department of Child Safety, Youth and Women are $49.6 million in 2018-19. Total capital grants for the portfolio are $500,000. These funds provide the infrastructure and systems to support children, young people and families to be safe and help prevent and respond to crime, violence, abuse and neglect.

Program Highlights (Property, Plant and Equipment)

• $4.1 million to undertake a range of upgrades to Child Safety Service Centres to accommodate an additional 292 child protection staff, commencing from 2017-18.

• $2 million to continue compliance works and building upgrades to residential care facilities.

• $19 million of a total of $26 million to support the transition of 17 year olds into the Youth Justice system, including an allocation of $13.1 million in 2018-19 for further zonal fencing and an additional 12 beds at the Cleveland Youth Detention Centre.

• $7.2 million of a total of $32.8 million to upgrade the security management system at the Brisbane Youth Detention Centre.

• $5.2 million to conduct ongoing program renewal, maintenance and minor works of Youth Justice facilities.

• $1.3 million to continue the development of a whole-of-government Our Child information and communication technology system to improve information sharing across agencies with regards to children missing from out-of-home care.

• $8.1 million to enhance and develop information systems for the following key programs:

• The Social Investment Program which will support the department’s social procurement spend and improve contract management system functionality for future outcome-based investment.

• The Destination Information Initiative which will deliver smarter, simpler, better management of electronic information and documents.

• The Child and Family Services Information and Communication Technology Program which is implementing solutions to support Child and Family Reform initiatives.

35

Capital Statement 2018-19

Program Highlights (Capital Grants)

• $500,000 for the Daniel Morcombe Foundation to construct a counselling centre at Palmwoods. The centre aims to educate children and young people about safety in a physical and online environment, prevent sexual abuse and support those children and young people who have been victims of crime.

Child Safety, Youth and Women
Project		Statistical Area		Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
DEPARTMENT OF CHILD SAFETY, YOUTH AND WOMEN
Property, Plant and Equipment
Child and Family Services
Restoring Child Protection - Child Safety Service Centres			Various		8,248		1,275		4,124		2,849
Residential Care Upgrades			Various						1,990		Ongoing
Sub-total Child and Family Services	��								6,114
Youth Justice
Transition of 17 year olds to the youth justice system			Various		25,986		6,999		18,987
Brisbane Youth Detention Centre - Security Management System Upgrade			310		32,809		18,953		7,206		6,650
Youth Justice Facilities			Various						5,158		Ongoing
Sub-total Youth Justice									31,351
Other Property, Plant and Equipment
Office Accommodation			Various						1,251		Ongoing
Information Technology Infrastructure Replacement			Various						1,375		Ongoing
Missing Child Interagency System (Our Child) Project			Various		2,620		1,271		1,349
Information Systems Enhancements			Various						8,149		Ongoing
Sub-total Other Property, Plant and Equipment									12,124
Total Property, Plant and Equipment									49,589

36

Capital Statement 2018-19

Child Safety, Youth and Women
Project	Statistical Area		Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
Capital Grants
Daniel Morcombe Foundation		316		900		400		500
Total Capital Grants								500
TOTAL CHILD SAFETY, YOUTH AND WOMEN (PPE)								49,589
TOTAL CHILD SAFETY, YOUTH AND WOMEN (CG)								500

37

Capital Statement 2018-19

3.4 COMMUNITIES, DISABILITY SERVICES AND SENIORS

Department of Communities, Disability Services and Seniors

Total capital purchases for the Department of Communities, Disability Services and Seniors are $17 million in 2018-19. Total capital grants for the portfolio are $3.1 million. These funds provide for integrated community services and strengthen and protect the well-being of Queenslanders, particularly those who are vulnerable and most in need.

Program Highlights (Property, Plant and Equipment)

• $12.7 million to continue the upgrade and construction program for multipurpose community and neighbourhood centres, including $1.9 million for building upgrades, rectifications and compliance works, $3 million for the construction of the Moranbah Youth and Community Centre at a total cost of $3.2 million, as part of a capital and operating funding agreement with BHP Billiton Mitsubishi Alliance, $6 million for the construction of centres at Inala and East Murgon, and $1.7 million to acquire land for new centres at Bowen and Wilsonton and for the design development of the Kallangur and Yarrabilba/Jimboomba centres and the Thursday Island Community Hub.

• $3.3 million to continue infrastructure upgrades, rectification works and construction of purpose-built accommodation as part of a targeted response for people with an intellectual or cognitive disability who exhibit extremely challenging behaviours.

Program Highlights (Capital Grants)

• $1.7 million for the Elderly Parent Carer Innovation Initiative which is aimed at assisting elderly parent carers to secure accommodation for their adult son or daughter with a disability when they can no longer care for them. This program has invested in projects to create new living arrangements that include use of accessible housing designs and assistive technologies to enable adults with disabilities to live a rich and valued life in their communities.

• $1.3 million to purchase and modify properties for people with high and complex needs providing safe and sustainable long term accommodation in Cairns and Brisbane.

38

Capital Statement 2018-19

Communities, Disability Services and Seniors
Project	Statistical Area		Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
DEPARTMENT OF COMMUNITIES, DISABILITY SERVICES AND SENIORS
Property, Plant and Equipment
Community Services
Neighbourhood and Community Centre Upgrades
General Property Upgrades		Various						500		Ongoing
Mackay Neighbourhood Centre Upgrade		312		1,200		1,180		20
Nambour Neighbourhood Centre Upgrade		316		750				280		470
New Farm Neighbourhood Centre Upgrade		305		1,050		200		850
Lockyer Neighbourhood Centre Upgrade		317		250				250
Neighbourhood and Community Centre Land Acquisition and Construction
Moranbah Youth and Community Centre		312		3,200		180		3,020
Inala Community Centre Replacement		310		3,500		375		3,125
East Murgon Neighbourhood Centre Replacement		319		3,100		220		2,880
Bowen Neighbourhood Centre		312		2,600				640		1,960
Yarrabilba/Jimboomba Neighbourhood Centre		311		3,600				100		3,500
Wilsonton Neighbourhood Centre		307		600				600
Kallangur Area Neighbourhood Centre		314		4,100		600		130		3,370
Thursday Island Community Hub		315		4,600		535		265		3,800
Sub-total Community Services								12,660
Disability Services
Bracken Ridge Redevelopment		302		2,757		900		1,857
General Property Upgrades		Various						1,480		Ongoing
Sub-total Disability Services								3,337
Other Property, Plant and Equipment
Office Accommodation		Various						1,004		Ongoing
Sub-total Other Property, Plant and Equipment								1,004
Total Property, Plant and Equipment								17,001

39

Capital Statement 2018-19

Communities, Disability Services and Seniors
Project	Statistical Area		Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
Capital Grants
Community Services
Atherton Community Centre		306		250		137		113
Sub-total Community Services								113
Disability Services
Elderly Parent Carer Innovation Initiative
Brisbane West		304		751		300		451
Brisbane East		301		843		422		421
Darling Downs - Maranoa		307		438		394		44
Sunshine Coast		316		1,000		200		800
Supported Accommodation
Cairns		306		800		80		720
Brisbane North		302		736		147		589
Sub-total Disability Services								3,025
Total Capital Grants								3,138
TOTAL COMMUNITIES, DISABILITY SERVICES AND SENIORS (PPE)								17,001
TOTAL COMMUNITIES, DISABILITY SERVICES AND SENIORS (CG)								3,138

40

Capital Statement 2018-19

3.5 EDUCATION

Total capital purchases for the Education portfolio (including the Department of Education and related entities) are $674.3 million in 2018-19. Total capital grants for the portfolio are $98.5 million in 2018-19.

The Education portfolio was impacted by machinery-of-government changes, effective from December 2017. These include the transfer of the training and skills function to the new Department of Employment, Small Business and Training and receipt of the Office of Industrial Relations from Queensland Treasury.

Department of Education

The 2018-19 capital purchases of $668.4 million includes the capital works program of $616 million for the construction and refurbishment of school educational facilities and early childhood education and care services. Capital works planning targets government priorities through consideration of population growth and shifts, changes in educational needs and addressing high-priority needs for student and staff health and safety.

Program Highlights (Property, Plant and Equipment)

• $125.2 million in capital expenditure as part of the $250 million for new classrooms and other infrastructure in state secondary schools to accommodate the six full cohorts in 2020.

• $122.5 million in capital expenditure to undertake new stages for recently opened schools and provide additional classrooms at existing schools in growth areas throughout the State.

• $94.5 million in capital expenditure as part of the $808 million Building Future Schools Fund to deliver world class learning environments for students and address enrolment growth pressures in state schools.

• $84.2 million in capital expenditure to replace and enhance facilities at existing schools.

• $47 million as part of $97 million in total funding for the Advancing Clean Energy Schools program to upgrade and install solar and energy efficiency measures in state schools.

• $15 million as part of $235 million in total funding under the Renewing Our Schools program to substantially refurbish and upgrade 17 high schools across the State.

• $8 million in capital expenditure as part of $25.6 million in total funding to deliver renewal works at 31 state schools.

41

Capital Statement 2018-19

• $4.5 million to continue refurbishment and enhancement of existing early childhood education and care facilities.

Program Highlights (Capital Grants)

• $98.5 million is provided in 2018-19 to the non-state schooling sector and student hostels.

Queensland Curriculum and Assessment Authority

The 2018-19 capital purchases of $5.9 million includes the redevelopment of the Queensland Curriculum and Assessment Authority’s (QCAA) information and communication technology systems to support the transition process and fundamental elements of the new senior assessment system. The new, centralised web-based solution will use contemporary technologies to deliver essential business functionality for QCAA and schools that includes:

• access to syllabus documents, along with supporting resources and assessment,

• support for new school-based assessment processes implemented across the state,

• management of external assessment processes (including test development, special provisions for students, and marker management and assessment administration),

• management of schools, student enrolments, subject enrolments, student results, vocational education and training registration and results, calculation of subject results and certification processes,

• school access to student performance datasets, and

• student access to curriculum, assessment and results information.

42

Capital Statement 2018-19

Education
Project	Statistical Area		Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
DEPARTMENT OF EDUCATION
Property, Plant and Equipment
Capital Works Program
Education Capital Works Program
New Secondary School in Fortitude Valley - Stage 1		305		73,371		4,662		41,931		26,778
New Secondary School in Calliope - Stage 1		308		22,860		360		13,500		9,000
New Secondary School in Coomera / Pimpama		309		45,000				9,450		35,550
New Secondary School in North Lakes / Mango Hill		314		45,000				9,450		35,550
New Secondary School in Ripley Valley - Providence		310		45,000				9,450		35,550
New Secondary School in Yarrabilba		311		45,000				9,450		35,550
New Primary School in Ripley Valley - Providence		310		31,500				5,778		25,722
New Special School in Caboolture		313		20,700				3,600		17,100
Albany Creek State High School - Additional classrooms		314		3,788		52		1,121		2,615
Alexandra Hills State High School - Additional classrooms		301		3,788		52		1,121		2,615
Augusta State School - Additional classrooms		310		4,230				1,080		3,150
Bardon State School - School pick-up area		305		804				402		402
Baringa State Primary School - New school		316		29,361		22,040		3,817		3,504
Beenleigh Special School - Additional classrooms		311		3,600				900		2,700
Beenleigh State High School - Additional classrooms		311		7,284		161		7,123
Branyan Road State School - Additional classrooms		319		2,250		450		1,800
Bray Park State High School - Multi-purpose hall		314		2,734		1,803		931

43

Capital Statement 2018-19

Education
Project	Statistical Area	Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
Bremer State High School - Additional classrooms	310		7,373		173		7,200
Bribie Island State High School - Additional classrooms	313		9,232		52		1,669		7,511
Brightwater State School - Additional classrooms	316		6,030		270		1,350		4,410
Brisbane State High School - Additional classrooms	305		2,662		52		2,610
Broadbeach State School - Additional classrooms	309		7,200		180		1,620		5,400
Bulimba State School - Repair pool facilities	305		402				402
Caboolture State High School - Additional classrooms	313		8,872		52		1,604		7,216
Cairns State High School - Refurbish classrooms	306		1,800				900		900
Caravonica State School - Multi-purpose hall	306		3,619		3,120		499
Cavendish Road State High School - Additional classrooms	303		7,612		52		1,377		6,183
Cavendish Road State High School - Multi-purpose hall	303		4,992		1,585		3,407
Centenary Heights State High School - New Performing Arts Centre and classroom refurbishments	317		9,224		314		8,910
Centenary State High School - Additional classrooms	304		7,612		52		1,377		6,183
Chancellor State College - Additional classrooms (secondary)	316		10,872		840		10,032
Chancellor State College - Additional classrooms (primary)	316		4,315		324		3,991
Chinchilla State High School - Multi-purpose hall	307		3,619		3,287		332
Cleveland District State High School - Additional classrooms	301		13,185		63		2,381		10,741
Cleveland District State High School - Multi-purpose hall	301		4,825		4,520		305

44

Capital Statement 2018-19

Education
Project	Statistical Area	Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
Coolum State High School - Additional classrooms	316		5,092		52		1,350		3,690
Currimundi Special School - Additional classrooms	316		9,540		8,061		1,479
Dalby State School - Additional classrooms and administration block	307		3,600		777		2,823
Eagle Junction State School - Upgrade pool facilities	305		664		73		591
Eagleby South State School - Additional classrooms	311		3,600				900		2,700
Eimeo Road State School - Additional classrooms	312		6,435		6,159		276
Eimeo Road State School - Air-conditioning replacement	312		1,313		38		1,275
Ferny Grove State High School - Additional classrooms	304		12,202		52		1,620		10,530
Flagstone State Community College - Additional classrooms	311		3,558		1,286		2,272
Forest Lake State High School - Additional classrooms	310		4,552		52		826		3,674
Glenala State High School - Additional classrooms	310		3,788		52		689		3,047
Gooburrum State School - Additional classrooms	319		2,700		540		2,160
Goodna State School - Additional classrooms	310		4,875		2,005		2,870
Gordonvale State High School - Indoor sports facility	306		3,620		2,839		781
Griffin State School - Additional classrooms	314		9,450		90		1,710		7,650
Harristown State High School - Additional classrooms	317		11,960		891		11,069
Heatley Secondary College - Air-conditioning replacement	318		2,850		900		1,950
Helensvale State High School - Additional classrooms	309		10,055		2,792		7,263

45

Capital Statement 2018-19

Education
Project	Statistical Area	Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
Highfields State Secondary College - Additional classrooms	317		7,937		2,357		5,580
Home Hill State School - Air-conditioning replacement	318		1,013		38		975
Indooroopilly State High School - Additional classrooms	304		15,262		52		2,754		12,456
Indooroopilly State School - Additional classrooms	304		7,650		180		1,800		5,670
Ipswich State High School - Performing arts centre	310		7,618		670		6,948
James Nash State High School - Additional classrooms	319		4,552		52		826		3,674
Kawana Waters State College - Additional classrooms	316		3,022		52		891		2,079
Kedron State High School - Additional classrooms	305		4,552		52		826		3,674
Kedron State School - Additional classrooms	302		5,400		333		2,790		2,277
Kelvin Grove State College - Additional classrooms	305		2,662		52		2,610
Kelvin Grove State College - Indoor sports facility	305		4,825		280		3,409		1,136
Kelvin Grove State College - Queensland Ballet facility	305		9,000		360		2,340		6,300
Kepnock State High School - Multi-purpose hall	319		3,619		1,788		1,831
Kingaroy State High School - Multi-purpose hall	319		3,619		3,355		264
Kirwan State High School - Multi-purpose hall	318		5,469		3,811		1,658
Laidley State High School - Additional classrooms	310		8,782		52		1,588		7,142
Lowood State High School - Additional classrooms	310		2,258		52		662		1,544
MacGregor State High School - Manual arts facility	303		3,965		2,759		1,206
MacGregor State School - School pick-up area	303		522		64		458

46

Capital Statement 2018-19

Education
Project	Statistical Area	Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
Mackay Northern Beaches State High School - Performing arts centre	312		8,808		1,414		7,394
Mackenzie State Special School - Additional classrooms	303		3,600				900		2,700
Mango Hill State School - Additional classrooms	314		2,700				2,700
Mansfield State High School - Additional classrooms (Building 1)	303		6,500		974		5,526
Mansfield State High School - Additional classrooms (Building 2)	303		8,578		262		1,800		6,516
Mansfield State High School - Multi-purpose hall	303		4,826		3,962		864
Mansfield State School - Hall extension	303		708				306		402
Mareeba State School - Additional classrooms	306		4,625		3,885		740
Maroochydore State High School - Additional classrooms	316		3,562		52		1,350		2,160
Marsden State High School - Additional classrooms	311		2,250				450		1,800
Meridan State College - Additional classrooms	316		4,012		52		729		3,231
Milton State School - Additional classrooms	305		7,239				1,713		5,526
Mitchelton Special School - Additional classrooms	304		5,490				450		5,040
Moranbah State High School - Multi-purpose hall	312		4,021		80		1,206		2,735
Mount Gravatt State High School - Additional classrooms	303		2,258		52		662		1,544
Mount Ommaney Special School - Additional classrooms	304		2,700		450		2,250
Mountain Creek State High School - Additional classrooms	316		17,653		733		16,920
Murrumba State Secondary College - Additional classrooms	314		11,700				900		10,800

47

Capital Statement 2018-19

Education
Project	Statistical Area	Total Estimated Cost $���000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
Nambour Special School - Additional classrooms	316		5,480		4,753		727
Nerang State High School - Upgrade classrooms and oval	309		402				402
North Lakes State College - Additional classrooms	314		11,072		5,260		5,812
North Rockhampton State High School - Refurbish classrooms	308		2,010				804		1,206
North Shore State School - New school	318		41,831		27,608		6,295		7,928
Northern Beaches State High School - Additional classrooms	318		6,082		52		1,102		4,928
Ormeau State School - Additional classrooms	309		4,950				1,350		3,600
Ormeau Woods State High School - Additional classrooms	309		7,808		1,284		6,524
Pacific Pines State High School - Additional classrooms	309		7,162		52		1,296		5,814
Pacific Pines State School - Upgrade resource centre	309		724				402		322
Palm Beach-Currumbin State High School - Additional classrooms	309		8,288		52		1,499		6,737
Park Ridge State High School - Additional classrooms	311		6,019		141		1,102		4,776
Picnic Creek State School - New school	309		31,042		24,512		3,258		3,272
Pimlico State High School - Additional classrooms	318		3,022		52		891		2,079
Pimpama State Primary College - Additional classrooms	309		5,220				1,350		3,870
Pimpama State School - Additional classrooms	309		4,950		450		4,500
Pimpama State School - Multi-purpose hall	309		5,309		3,354		1,955
Pimpama State Secondary College - Additional classrooms and performing arts centre	309		16,524		7,372		9,152

48

Capital Statement 2018-19

Education
Project	Statistical Area	Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
Planning for Inner City South High School	305		2,700		540		2,160
Proserpine State High School - Additional classrooms	312		5,813		52		1,121		4,640
Queensland Academy for Science, Mathematics and Technology - Additional classrooms	305		2,700		450		2,250
Richlands East State School - Additional classrooms	310		3,285		906		2,379
Rochedale State High School - Additional classrooms	303		3,519		112		648		2,759
Southport State High School - Additional classrooms	309		8,905		131		1,620		7,154
Springfield Central State High School - Multi-purpose hall	310		7,234		3,527		3,707
Stretton State College - Additional classrooms (secondary)	303		7,153		65		1,296		5,792
Stretton State College - Additional classrooms (primary)	303		13,950		90		3,600		10,260
Sunnybank Hills State School - Additional classrooms	303		9,450		90		1,890		7,470
Sunnybank Special School - Additional classrooms	303		4,937		2,661		2,276
Sunshine Beach State High School - Additional classrooms	316		5,318		52		1,580		3,686
Tamborine Mountain State High School - Additional classrooms	309		12,202		52		2,203		9,947
The Gap State High School - Additional classrooms	304		8,072		916		7,156
The Willows State School - Shade structures	318		322				322
Toolooa State High School - Additional classrooms	308		3,788		52		1,121		2,615
Toowong State School - Hall extension	305		442				442
Trinity Bay State High School - Additional classrooms	306		6,847		52		1,239		5,556

49

Capital Statement 2018-19

Education
Project	Statistical Area	Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
Trinity Bay State High School - Multi-purpose hall	306		4,415		3,332		1,083
Varsity College - Additional classrooms	309		1,762		52		1,710
Wavell State High School - Performing arts centre	302		5,559		4,907		652
West End State School - Additional classrooms	305		4,501		203		4,298
Windaroo Valley State High School - Additional classrooms	311		3,788		52		1,121		2,615
Windsor State School - Site works	305		643		52		591
Wulguru State School - Security fencing	318		402				402
Wynnum State High School - Additional classrooms	301		3,030		105		2,925
Yarrabilba State School - New school	311		37,556		24,787		6,031		6,738
Yeppoon State High School - Additional classrooms	308		3,788		52		1,121		2,615
Long Jump Track	Various		1,287				1,287
Advancing Clean Energy Schools	Various		97,000		2,000		47,000		48,000
School Infrastructure	Various						24,000		Ongoing
Enhancement capital contribution Public Private Partnerships	Various						34,467		Ongoing
Renewing Our Schools	Various		235,000				15,000		220,000
Land Acquisition	Various						31,170		Ongoing
School Subsidy Scheme	Various						6,300		Ongoing
General and Minor Works	Various						47,875		Ongoing
Sub-total Education Capital Works Program							611,514
Early Childhood Education and Care Capital Works Program
Tara Shire State College - Early Years Service	307		3,838		201		3,637
Yarrabilba State School - Integrated Child Services Community Hub	311		3,600		3,000		600

50

Capital Statement 2018-19

Education
Project	Statistical Area	Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
General and Minor Works (Early Childhood Education and Care)	Various						213		Ongoing
Sub-total Early Childhood Education and Care Capital Works Program							4,450
Sub-total Capital Works Program							615,964
Plant and Equipment
Education Plant and Equipment	Various						50,778		Ongoing
Office of Industrial Relations Plant and Equipment	Various						1,646		Ongoing
Sub-total Plant and Equipment							52,424
Total Property, Plant and Equipment							668,388
Capital Grants
Capital Grants	Various						98,501		Ongoing
Total Capital Grants							98,501
QUEENSLAND CURRICULUM AND ASSESSMENT AUTHORITY
Property, Plant and Equipment
Enrolment and Assessment of Senior Learners System	305		3,699		2,998		701
Contact Management System	305		1,832		1,625		207
Endorsed Assessment System	305		1,097		542		444		111
Assessor, Invigilator and Marker Management System	305		1,104		183		568		353
VET Portal	305		1,344		1,175		156		13
Syllabus Online	305		1,505		656		849
Confirmation Online System	305		1,654		304		675		675
External Assessment System	305		568				568
Online Learning - Professional Development and Accreditation	305		1,069		284		460		325
QCAA Portal	305		3,030		236		800		1,994
Other Plant and Equipment	305						485		Ongoing
Total Property, Plant and Equipment							5,913
TOTAL EDUCATION (PPE)							674,301
TOTAL EDUCATION (CG)							98,501

51

Capital Statement 2018-19

3.6 ELECTORAL COMMISSION OF QUEENSLAND

Electoral Commission of Queensland

$3.3 million of $6.3 million to replace the Commission’s Strategic Elections Management System has been allocated in 2018-19. A further $79,000 has been allocated to replace plant and equipment.

Electoral Commission of Queensland
Project	Statistical Area		Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
ELECTORAL COMMISSION OF QUEENSLAND
Property, Plant and Equipment
Plant and Equipment		305						79		Ongoing
Strategic Election Management System (SEMS) Replacement Project		305		6,306		3,004		3,302
Total Property, Plant and Equipment								3,381
TOTAL ELECTORAL COMMISSION OF QUEENSLAND (PPE)								3,381

52

Capital Statement 2018-19

3.7 EMPLOYMENT, SMALL BUSINESS AND TRAINING

Total capital purchases for the Employment, Small Business and Training portfolio, including TAFE Queensland, are $57.4 million in 2018-19.

Department of Employment, Small Business and Training

The 2018-19 capital purchases for the Department of Employment, Small Business and Training of $47.5 million includes $30 million as part of the Advancing Our Training Infrastructure initiative to deliver up to $85 million across several training sites as part of the long-term plan to revitalise the State’s infrastructure portfolio. A further $17.3 million is allocated to advance needed capital works for State-owned training assets.

Program Highlights (Property, Plant and Equipment)

• $30 million out of the up to $85 million over three years committed as part of the election commitment for the Advancing Our Training Infrastructure initiative to redevelop, refurbish and expand key high-need TAFE facilities.

• $17.3 million to renew and grow Queensland’s training assets to enable delivery of priority skills training that supports workforce and economic development.

Employment, Small Business and Training
Project	Statistical Area		Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000	Budget 2018-19 $‘000		Post 2018-19 $‘000
DEPARTMENT OF EMPLOYMENT, SMALL BUSINESS AND TRAINING
Property, Plant and Equipment
Advancing our Training Infrastructure - Pimlico		318		26,000			26,000
Advancing our Training Infrastructure - Toowoomba		317		4,000			4,000
Training Assets - Property Management Program		Various					1,500		Ongoing
Training Assets - Emergent Replacement		Various					1,000		Ongoing
Training Assets - Asset Replacement Program		Various					5,500		Ongoing
Training Assets - Renewal and Reinvigoration		Various					9,250		Ongoing
Plant and Equipment		305		250			250
Total Property, Plant and Equipment							47,500

53

Capital Statement 2018-19

Employment, Small Business and Training
Project	Statistical Area		Total Estimated Cost $‘000	Expenditure to 30-06-18 $‘000	Budget 2018-19 $‘000		Post 2018-19 $‘000
TAFE QUEENSLAND
Property, Plant and Equipment
Plant and Equipment		Various				5,500		Ongoing
Minor Capital Projects and Acquisitions		Various				400		Ongoing
Product Development		Various				2,000		Ongoing
One Network and Wi-Fi Upgrade		Various				2,000		Ongoing
Total Property, Plant and Equipment						9,900
TOTAL EMPLOYMENT, SMALL BUSINESS AND TRAINING (PPE)						57,400

54

Capital Statement 2018-19

3.8 ENVIRONMENT AND SCIENCE

In 2018-19 the capital program amounts to $109.4 million for the Environment and Science portfolio including its statutory bodies and shared service provider.

Department of Environment and Science

The capital program for the Department of Environment and Science for 2018-19 is $102 million, including $95 million for capital purchases and $7 million for capital grants. The capital purchases reflect the department’s contribution to protecting and sustainably managing Queensland’s environment and natural, cultural and heritage value, as well as promoting the development of, and engagement with science, heritage and the arts. A further $4 million in contingent capital grants is planned.

Program Highlights (Property, Plant and Equipment)

• $13.5 million towards the redevelopment of the Mon Repos Turtle Centre.

• $7.5 million to support ecotourism opportunities and tourism recovery in the Whitsunday Islands National Park.

• $6.7 million for priority infrastructure projects across State owned arts and cultural facilities, delivered through the Arts Infrastructure Investment Fund.

• $5.3 million towards the replacement of a major vessel to support the Great Barrier Reef Joint Field Management Program – Intergovernmental Commitment.

• $5 million to build a new performing arts venue at the Queensland Performing Arts Centre, benefitting Queensland artists and audiences.

• $4.9 million for the development of systems to enhance environmental regulatory capability and improve engagement with the community.

• $4.9 million to address critical infrastructure upgrades works at the Queensland Museum and installation of two further cooling towers within the Central Energy Plant at the Queensland Cultural Centre, South Bank.

• $4.7 million to enhance critical infrastructure to support ecotourism activities at Glasshouse Mountain National Park, Noosa National Park and D’Aguilar National Park.

• $4.2 million to renew and replace large critical infrastructure items across the Queensland Cultural Centre.

• $2.5 million for visitor access and park management facilities and equipment on North Stradbroke Island (Minjerribah), jointly managed with the Quandamooka Yoolooburrabee Aboriginal Corporation.

55

Capital Statement 2018-19

Program Highlights (Capital Grants)

• $5 million towards the construction of the Cairns Performing Arts Centre.

• $4 million as part of $10 million in total State funding to the Rockhampton Regional Council to construct the new Rockhampton Art Gallery is held centrally subject to the confirmation of a $10 million contribution from the Australian Government.

• $1 million towards the infrastructure upgrade of facilities at Woodfordia, the site of the Woodford Folk Festival.

• $600,000 provided to upgrade Queensland Museum’s South Bank storage area.

• $300,000 towards renewing and upgrading the Bille Brown Studio, home of the Queensland Theatre Company.

• $65,000 towards addressing high priority capital projects at the Queensland Maritime Museum.

Library Board of Queensland

The Library Board of Queensland will invest $2.1 million in purchasing heritage and reference collections, intangible assets in the form of digital collections, as well as replacement of information technology equipment.

Program Highlights (Property, Plant and Equipment)

• $837,000 to replace information technology equipment.

• $547,000 to acquire new items for the digital collection.

• $349,000 to acquire new items for the information collection.

• $336,000 to acquire new items for the heritage collection.

Queensland Museum

The Queensland Museum will invest $2.3 million in permanent galleries, State Collection storage and acquisitions as well as the life cycle replacement and renewal of equipment.

Program Highlights (Property, Plant and Equipment)

• $1.2 million for permanent galleries, commemorating the centenary of the ANZAC and to provide a cutting edge interactive hub for science, technology, engineering and mathematics (STEM).

• $559,000 invested in information technology primarily for the life cycle replacement of assets and upgrades across the museum network.

56

Capital Statement 2018-19

• $318,000 invested in storage facilities for the State Collection.

• $175,000 invested in life cycle capital replacements, mainly motor vehicles.

• $20,000 to acquire new items for the State Collection.

Queensland Art Gallery

The Queensland Art Gallery will invest $2.1 million in acquiring art for the Gallery’s collection as well as life cycle replacement of other property, plant and equipment assets.

Program Highlights (Property, Plant and Equipment)

• $1.8 million to acquire art for the Gallery’s collection.

• $300,000 to replace other property, plant and equipment.

Queensland Performing Arts Trust

The Queensland Performing Arts Trust will invest $1 million in the lifecycle replacement of operational property, plant and equipment assets such as theatre equipment and food and beverage equipment.

Environment and Science
Project	Statistical Area		Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
DEPARTMENT OF ENVIRONMENT AND SCIENCE
Property, Plant and Equipment
Buildings and Infrastructure
Mon Repos Turtle Centre redevelopment		319		17,360		3,070		13,465		825
Whitsunday Islands National Park		312		12,143		1,113		7,530		3,500
D’Aguilar National Park		314		3,000		100		1,400		1,500
Glasshouse Mountain National Park		316		3,030		920		1,610		500
Noosa National Park		316		2,240		505		1,735
Management and access facilities - Parks and forests		Various						10,226		Ongoing
Recreation and visitor facilities - Parks and forests		Various						10,099		Ongoing
North Stradbroke Island (Minjerribah)		301						2,450		Ongoing
Great Barrier Reef moorings		306		2,375		1,820		555
Arts Infrastructure Investment Fund		Various		15,500		1,350		6,650		7,500

57

Capital Statement 2018-19

Environment and Science
Project	Statistical Area		Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
Queensland Cultural Centre critical infrastructure works program		305		22,856		18,700		4,156
Queensland Cultural Centre critical infrastructure asset renewal		305		8,450				4,928		3,522
Queensland Cultural Centre - Future energy efficiency		305		9,000				1,800		7,200
Critical infrastructure asset renewal and equipment replacement at QPAC		305		3,300				1,500		1,800
New Performing Arts Venue at QPAC		305		125,000				5,000		120,000
Plant and Equipment
General plant and equipment		Various						10,798		Ongoing
National Parks major vessel replacement—Reef Heron		308		6,009		759		5,250
Systems Development
Systems for Environmental Regulation		Various		7,878		3,000		4,878
General systems development		Various						970		Ongoing
Total Property, Plant and Equipment								95,000
Capital Grants
Cairns Performing Arts Centre		306		15,000		10,000		5,000
Upgrade of Queensland Museum’s South Bank storage area		305		2,300		1,700		600
Woodfordia infrastructure upgrade		313		2,000		1,000		1,000
Queensland Maritime Museum		305		308		158		65		85
Bille Brown Studio Upgrade		305		2,000		1,700		300
Total Capital Grants								6,965
LIBRARY BOARD OF QUEENSLAND
Property, Plant and Equipment
Heritage Collection additions		305						336		Ongoing
Asset replacement program		305						837		Ongoing
Information Collection additions		305						349		Ongoing
Digital Collection additions		305						547		Ongoing
Total Property, Plant and Equipment								2,069

58

Capital Statement 2018-19

Environment and Science
Project	Statistical Area		Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000	Budget 2018-19 $‘000		Post 2018-19 $‘000
QUEENSLAND MUSEUM
Property, Plant and Equipment
Permanent galleries		305		1,200			1,200
Information Technology		305					559		Ongoing
Collection storage facilities		305		318			318
Life cycle capital replacement		305					175		Ongoing
Collection acquisition		305					20		Ongoing
Total Property, Plant and Equipment							2,272
QUEENSLAND ART GALLERY
Property, Plant and Equipment
Acquisition of art works for the Gallery		305					1,750		Ongoing
Ongoing replacement of plant and equipment		305					300		Ongoing
Total Property, Plant and Equipment							2,050
QUEENSLAND PERFORMING ARTS TRUST
Property, Plant and Equipment
Property, plant and equipment		305					1,000		Ongoing
Total Property, Plant and Equipment							1,000
TOTAL ENVIRONMENT AND SCIENCE (PPE)							102,391
TOTAL ENVIRONMENT AND SCIENCE (CG)							6,965

Notes:

The Library Board of Queensland will invest $2.1 million in purchasing heritage and reference collections, intangible assets in the form of digital collections, as well as replacement of information technology equipment

The Queensland Performing Arts Trust will invest $1 million in the life cycle replacement of operational property, plant and equipment assets such as theatre equipment and food and beverage equipment.

59

Capital Statement 2018-19

3.9 HOUSING AND PUBLIC WORKS

Total capital purchases for the Housing and Public Works portfolio, including its statutory bodies, are $459.7 million in 2018-19, with capital grants of $182.5 million. Capital purchases for the statutory bodies include $36.3 million for Stadiums Queensland and $5.2 million for the Queensland Building and Construction Commission.

Under the Queensland Housing Strategy, the department delivers a range of programs that support the supply and improvement of social housing dwellings. In particular, the Housing Construction Jobs Program will fund the construction commencement target of up to 599 social housing dwellings through 519 commencements of property, plant and equipment and 80 commencements of capital grants. This may need to be amended in recognition of the end of the National Partnership on Remote Housing funding, pending further negotiations with the Australian Government.

Department of Housing and Public Works

Program Highlights (Property, Plant and Equipment)

• $270.1 million to deliver 423 social housing dwellings, commence construction of up to 519 social housing dwellings and upgrade existing social housing dwellings through the Housing Construction Jobs Program and the Queensland Housing Strategy.

• $7.2 million to continue to develop 40 dwellings for the Townsville Youth Foyer.

• $61.7 million for social housing in Aboriginal and Torres Strait Islander communities (including $24 million from the expiring National Partnership on Remote Housing) to deliver 75 social housing dwellings, upgrade existing social housing and purchase eight dwellings for use as temporary accommodation to support the transfer of social housing to home ownership on Aboriginal and Torres Strait Islander land.

• $47.5 million for the provision of government-employee housing to support the attraction and retention of government employees in locations of high need where there is no alternative accommodation in rural and remote Queensland. This includes completing the construction of 22 residences in rural and remote communities to provide new accommodation for government employees.

• $9.5 million to meet the Queensland Government’s contribution toward the $35 million refurbishment of the Thomas Dixon Centre, and to manage costs and associated works required to maintain and preserve the heritage listed centre.

60

Capital Statement 2018-19

• $4.5 million delivery of capital works program for the Gold Coast Recreation Centre.

Program Highlights (Capital Grants)

• $41.2 million to deliver 143 social housing dwellings, commence construction of up to 80 social housing dwellings through the Housing Construction Jobs Program and commence 49 dwellings and upgrades for Indigenous communities, and housing and domestic violence services.

• $62.5 million for social housing in Aboriginal and Torres Strait Islander communities (including $18.8 million funding from the expiring National Partnership on Remote Housing) to deliver a further 18 social housing dwellings, undertake infrastructure development, upgrade existing social housing and undertake upgrades to support the transfer of social housing to home ownership on Aboriginal and Torres Strait Islander land.

• $37.3 million the under Get Playing Places and Spaces and Get Playing Plus programs and other various capital grants to provide for new or upgraded sport and recreation infrastructure and participation projects to support Queensland children and healthy communities.

• $15 million under the Female Facilities Program to assist sport and recreation organisations and local governments to develop functional and inclusive female change rooms and facilities.

• $26.6 million in 2018-19 to support sport and recreation clubs at the grassroots through the delivery of infrastructure projects including the Underwood Sports Park, the University of the Sunshine Coast Stadium and the Zillmere Sports Centre.

CITEC

CITEC has capital purchases of $3.6 million in 2018-19, comprising $2.5 million for hardware replacement and $1.1 million for critical software enhancements relating to information brokerage.

Queensland Shared Services

Queensland Shared Services has capital purchases of $5 million in 2018-19, including $4.8 million for optimisation projects and initiatives.

Queensland Building and Construction Commission

Queensland Building and Construction Commission has capital purchases of $5.2 million in 2018-19 to fit-out a new leased office, implement strategic projects to improve effectiveness and efficiency in delivering services, and replace ageing property, plant and equipment to reduce expenditure on maintenance.

61

Capital Statement 2018-19

Stadiums Queensland

Stadiums Queensland has capital purchases of $36.3 million in 2018-19 representing the investment required to maintain Queensland’s major sporting and entertainment facilities to a standard appropriate for the conduct of national and international events and community sports activity. This includes $8 million in 2018-19 towards security upgrades for safe and secure venues in Queensland.

Housing and Public Works
Project	Statistical Area	Total Estimated Cost $‘000	Expenditure to 30-06-18 $‘000	Budget 2018-19 $‘000		Post 2018-19 $‘000
DEPARTMENT OF HOUSING AND PUBLIC WORKS
Property, Plant and Equipment
Housing and Homelessness Services
Construction
Brisbane - East	301				5,491		Ongoing
Brisbane - North	302				12,023		Ongoing
Brisbane - South	303				9,920		Ongoing
Brisbane - West	304				5,900		Ongoing
Brisbane Inner City	305				16,978		Ongoing
Cairns	306				25,451		Ongoing
Central Queensland	308				2,896		Ongoing
Gold Coast	309				10,172		Ongoing
Ipswich	310				17,841		Ongoing
Logan - Beaudesert	311				18,653		Ongoing
Moreton Bay - North	313				13,868		Ongoing
Moreton Bay - South	314				1,566		Ongoing
Queensland - Outback	315				5,440		Ongoing
Sunshine Coast	316				11,491		Ongoing
Toowoomba	317				1,279		Ongoing
Townsville	318				20,850		Ongoing
Wide Bay	319				1,315		Ongoing
Sub-total Construction					181,134
Upgrades
Brisbane - East	301				4,429		Ongoing
Brisbane - North	302				4,560		Ongoing
Brisbane - South	303				6,734		Ongoing
Brisbane - West	304				1,704		Ongoing
Brisbane Inner City	305				4,552		Ongoing

62

Capital Statement 2018-19

Housing and Public Works
Project	Statistical Area		Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
Cairns		306						25,896		Ongoing
Darling Downs - Maranoa		307						1,675		Ongoing
Central Queensland		308						7,261		Ongoing
Gold Coast		309						4,750		Ongoing
Ipswich		310						5,228		Ongoing
Logan - Beaudesert		311						3,894		Ongoing
Mackay		312						4,350		Ongoing
Moreton Bay - North		313						3,096		Ongoing
Moreton Bay - South		314						949		Ongoing
Queensland - Outback		315						18,131		Ongoing
Sunshine Coast		316						4,881		Ongoing
Toowoomba		317						3,245		Ongoing
Townsville		318						11,511		Ongoing
Wide Bay		319						6,921		Ongoing
Sub-total Upgrades								123,767
Purchase of Existing Properties
Queensland - Outback		315						2,500		Ongoing
Statewide		Various						2,500		Ongoing
Sub-total Purchase of Existing Properties								5,000
Land
Brisbane Inner City		305						5,711		Ongoing
Cairns		306						846		Ongoing
Central Queensland		308						1,001		Ongoing
Gold Coast		309						3,671		Ongoing
Ipswich		310						6,360		Ongoing
Logan - Beaudesert		311						3,831		Ongoing
Moreton Bay - North		313						1,606		Ongoing
Sunshine Coast		316						3,141		Ongoing
Toowoomba		317						681		Ongoing
Townsville		318						1,427		Ongoing
Wide Bay		319						382		Ongoing
Statewide		Various						500		Ongoing
Sub-total Land								29,157
Other Plant and Equipment		Various						4,559		Ongoing
Sub-total Housing and Homelessness Services								343,617
Public Works
Brisbane - Boggo Road Precinct Redevelopment		303		42,067		39,191		1,876		1,000

63

Capital Statement 2018-19

Housing and Public Works
Project	Statistical Area		Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
Brisbane - Thomas Dixon Centre Refurbishment		305		13,500				9,500		4,000
Building Works and Capital Replacements		Various						500		Ongoing
Government Employee Housing		Various						32,271		Ongoing
Government Employee Housing Construction - Aurukun		315		22,600		7,355		15,245
Other Property, Plant and Equipment		Various						2,084		Ongoing
Sport and Recreation - Queensland Recreation Centres		Various		14,914				4,456		10,458
Sub-total Public Works								65,932
Total Property, Plant and Equipment								409,549
Capital Grants
Housing and Homelessness Services
Brisbane - North Capital Grants		302						773		Ongoing
Brisbane Inner City Capital Grants		305						1,737		Ongoing
Cairns Capital Grants		306						23,998		Ongoing
Central Queensland Capital Grants		308						52		Ongoing
Gold Coast Capital Grants		309						6,144		Ongoing
Ipswich Capital Grants		310						7,910		Ongoing
Logan - Beaudesert Capital Grants		311						5,472		Ongoing
Moreton Bay - North Capital Grants		313						785		Ongoing
Queensland - Outback Capital Grants		315						39,985		Ongoing
Sunshine Coast Capital Grants		316						1,650		Ongoing
Townsville Capital Grants		318						2,329		Ongoing
Wide Bay Capital Grants		319						7,205		Ongoing
Statewide Capital Grants		Various						5,584		Ongoing
Sub-total Housing and Homelessness Services								103,624
Public Works (Sport and Recreation)
Get Playing Plus		Various		60,580		40,304		17,276		3,000
Get Playing Places and Spaces round 4-7		Various		53,850		29,245		16,400		8,205
Female Facilities Program		Various		15,000				15,000
Grant Funding Boost		Various		10,432				7,982		2,450
Zillmere Sports Centre		302		5,500				2,500		3,000

64

Capital Statement 2018-19

Housing and Public Works
Project	Statistical Area	Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
Underwood Sports Park	311		9,110				9,110
University of the Sunshine Coast Stadium	316		7,000				7,000
Various capital grants	Various		7,352		726		3,626		3,000
Sub-total Public Works (Sport and Recreation)							78,894
Total Capital Grants							182,518
CITEC
Property, Plant and Equipment
Hardware Replacement - ICT	305						2,500		Ongoing
Software Enhancements - Information Brokerage	305						1,100		Ongoing
Total Property, Plant and Equipment							3,600
QUEENSLAND SHARED SERVICES
Property, Plant and Equipment
Optimisation projects and initiatives	305						4,784		Ongoing
Asset Replacement	305						200		Ongoing
Total Property, Plant and Equipment							4,984
QUEENSLAND BUILDING AND CONSTRUCTION COMMISSION
Property, Plant and Equipment
Leasehold Restoration	303		2,000				2,000
Software Development	303		1,777				1,777
Other Property, Plant and Equipment	Various		1,435				1,435
Total Property, Plant and Equipment							5,212

65

Capital Statement 2018-19

Housing and Public Works
Project	Statistical Area	Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
STADIUMS QUEENSLAND
Property, Plant and Equipment
Annual capital and maintenance program	Various						12,726		Ongoing
Queensland State Netball Centre	303		44,000		28,409		15,591
Safe, secure sporting and entertainment facilities	Various		8,300		300		8,000
Total Property, Plant and Equipment							36,317
TOTAL HOUSING AND PUBLIC WORKS (PPE)							459,662
TOTAL HOUSING AND PUBLIC WORKS (CG)							182,518

66

Capital Statement 2018-19

3.10 INNOVATION, TOURISM INDUSTRY DEVELOPMENT AND THE COMMONWEALTH GAMES

Department of Innovation, Tourism Industry Development and the Commonwealth Games

Total capital outlays for the Innovation, Tourism Industry Development and the Commonwealth Games portfolio are $34.7 million in 2018-19.

Program Highlights (Property, Plant and Equipment)

The property, plant and equipment in the Department of Innovation, Tourism Industry Development and the Commonwealth Games in 2018-19 is $196,000, including:

• $172,000 to upgrade the Carrara Stadium.

Program Highlights (Capital Grants)

The capital grants in the Department of Innovation, Tourism Industry Development and the Commonwealth Games in 2018-19 are $34.5 million, including:

• $12.4 million to the Regional Tourism Infrastructure and Experience Development Program to assist communities to grow tourism by developing new and improved tourism experiences which includes the facilitation of outback tourism infrastructure projects.

• $10 million for the Great Barrier Reef Island Rejuvenation Package to help industry rejuvenate Great Barrier Reef Island resorts and offer world-class experiences to visitors.

• $5.8 million for the Great Keppel Island Recovery Package to deliver major tourism infrastructure improvements such as power and water connections to the mainland.

• $3.1 million to finalise works on Gold Coast 2018 Commonwealth Games venues to enable ongoing public and community use of the facilities for post-games events. Venues include the Gold Coast Hockey Centre, Belmont Shooting Centre, Carrara Sports and Leisure Centre and the Carrara Indoor Stadium.

• $2.2 million to help refurbish and extend the premises and exhibits at the Australian Workers Heritage Centre and Wanpa-rda Matilda Outback Education Centre at Barcaldine.

• $524,000 to Mount Inkerman Nature Tourism Development for roadworks, car parking and other infrastructure upgrades.

• $413,000 to the Mackay Tourism Visitor Information Centre to deliver a new Visitor Information Centre at Sarina, repositioned on the highway.

67

Capital Statement 2018-19

Innovation, Tourism Industry Development and the Commonwealth Games
Project	Statistical Area	Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
DEPARTMENT OF INNOVATION, TOURISM INDUSTRY DEVELOPMENT AND THE COMMONWEALTH GAMES
Property, Plant and Equipment
Carrara Stadium	309		5,509		5,337		172
Other Plant Property and Equipment - Office Equipment	305		24				24
Total Property, Plant and Equipment							196
Capital Grants
Great Barrier Reef Island Rejuvenation Package	Various		16,500				10,000		6,500
Great Keppel Island Recovery Package	308		23,350				5,770		17,580
Regional Tourism Infrastructure and Experience Development Program	315		39,600				12,400		27,200
Australian Workers Heritage Centre and Wanpa-rda Matilda Outback Education Centre	315		2,200				2,200
Mount Inkerman Nature Tourism Development	318		541		17		524
Mackay Tourism Visitor Information Centre	312		1,300		887		413
Other Capital Grants	305		29				29
Gold Coast Hockey Centre	309		16,572		15,272		1,300
Belmont Shooting Centre	301		17,845		17,585		260
Carrara Sports and Leisure Centre	309		103,304		103,084		220
Carrara Indoor Stadium	309		8,108		7,958		150
Gold Coast Aquatic Centre	309		41,391		41,250		141
Nerang Mountain Biking Trails	309		2,741		2,641		100
Coomera Sport and Leisure Centre	309		39,421		39,411		10
Other Games Projects	309		1,229		262		967
Total Capital Grants							34,484
TOTAL INNOVATION, TOURISM INDUSTRY DEVELOPMENT AND THE COMMONWEALTH GAMES (PPE)							196
TOTAL INNOVATION, TOURISM INDUSTRY DEVELOPMENT AND THE COMMONWEALTH GAMES (CG)							34,484

68

Capital Statement 2018-19

3.11 JUSTICE AND ATTORNEY-GENERAL

The 2018-19 capital acquisitions for Justice and Attorney-General (including the Department of Justice and Attorney-General, Public Trustee of Queensland, Legal Aid Queensland and the Crime and Corruption Commission) are $75.7 million.

Department of Justice and Attorney-General

The Department of Justice and Attorney-General capital acquisitions for 2018-19 of $44.5 million will primarily focus on the upgrade of courthouses, the expansion and upgrade of the existing audio visual capacity in the justice system, the implementation of an online Blue Card application system and a program of minor works in courthouses.

Program Highlights (Property, Plant and Equipment)

• $6.5 million of $12 million to upgrade the Rockhampton courthouse.

• $3.7 million of $11 million to upgrade the Beenleigh courthouse.

• $3.7 million of $9 million to upgrade the Townsville courthouse.

• $8.4 million to expand and upgrade existing audio visual capacity in the justice system, which includes video conferencing and in-custody court appearances.

• $9.4 million to continue the ongoing program of minor works in courthouses.

• $8.3 million of $9.8 million to implement an online Blue Card application system.

Public Trustee of Queensland

For 2018-19 the capital budget is $21.7 million. This capital expenditure will enable the Public Trustee to continue to provide a wide range of efficient services to the Queensland community, as well as continuing to maintain appropriate workplace health and safety standards for clients and staff. In addition it will support the delivery of the digital business transformation program of works.

Program Highlights (Property, Plant and Equipment)

• $6.7 million to improve buildings and refurbish existing offices throughout the State.

• $1.6 million to fit out offices and invest in information and communication technology network infrastructure.

• The Public Trustee will also invest $13.3 million in digitisation projects and the business transformation program of works.

69

Capital Statement 2018-19

Legal Aid Queensland

Legal Aid Queensland’s 2018-19 capital expenditure program is $3.1 million. Legal Aid Queensland will invest $2.8 million on major property, plant and equipment projects, including to refurbish the Mount Isa and Brisbane offices.

A further $325,000 will be invested to replace some of Legal Aid Queensland’s motor vehicles and minor property, plant and equipment.

Crime and Corruption Commission

The Crime and Corruption Commission will spend $6.4 million on its capital purchases in 2018-19.

Program Highlights (Property, Plant and Equipment)

• $2.6 million to replace computer and other information technology equipment.

• $1.7 million to continue to develop a new Integrated Case Management System.

• $1.3 million to enhance the processing of digital evidence and to provide a contemporary information security platform.

• $770,000 to replace vehicles.

Justice and Attorney-General
Project	Statistical Area	Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
DEPARTMENT OF JUSTICE AND ATTORNEY-GENERAL
Property, Plant and Equipment
Justice Services
Rockhampton Courthouse Upgrade	308		12,000		464		6,536		5,000
Beenleigh Courthouse Upgrade	311		11,000		300		3,700		7,000
Townsville Courthouse Upgrade	318		9,000		350		3,650		5,000
Other acquisitions of property, plant and equipment	Various						8,458		Ongoing
Courthouses, Minor Capital Works	Various						9,446		Ongoing
Queensland Courts Information Systems	305						925		Ongoing
Sub-total Justice Services							32,715
Other Departmental
Implementation of online Blue Card application system	305		9,790				8,320		1,470

70

Capital Statement 2018-19

Justice and Attorney-General
Project	Statistical Area	Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
Minor Capital Works - Software	305						2,065		Ongoing
Leashold Improvements	Various						531		Ongoing
Other acquisitions of property, plant and equipment	Various						881		Ongoing
Sub-total Other Departmental							11,797
Total Property, Plant and Equipment							44,512
PUBLIC TRUSTEE OF QUEENSLAND
Property, Plant and Equipment
Business Transformation Program of Works	305						13,333		Ongoing
Building Improvements - Head Office	305						4,651		Ongoing
Building Improvements - Regional Offices	Various						2,066		Ongoing
Plant and Equipment Upgrades	Various						1,611		Ongoing
Total Property, Plant and Equipment							21,661
LEGAL AID QUEENSLAND
Property, Plant and Equipment
Brisbane Head Office Refurbishment	305		1,711		100		1,611
Brisbane Leasehold Improvement	305		895				895
Mount Isa Office Refurbishment	315		285				285
Minor Works - Regional and Brisbane	Various		100				100
Motor Vehicle Replacements	305		445		220		225
Total Property, Plant and Equipment							3,116
CRIME AND CORRUPTION COMMISSION
Property, Plant and Equipment
Computer and Other Equipment	305		2,633				2,633
Computer Software (Program Unify)	305		1,691				1,691
Digital Investigative Services	305		1,295				1,295
Vehicle Replacement	305		770				770
Leasehold Improvements	305		50				50
Total Property, Plant and Equipment							6,439
TOTAL JUSTICE AND ATTORNEY-GENERAL (PPE)							75,728

71

Capital Statement 2018-19

3.12 LEGISLATIVE ASSEMBLY OF QUEENSLAND

Legislative Assembly of Queensland

The total planned 2018-19 capital expenditure for the Legislative Assembly of Queensland is $9.2 million. Significant capital expenditure in the parliamentary precinct includes the completion of the Parliament House fire protection system and the upgrade of Parliament House data cabling infrastructure. Other capital expenditure includes the completion of the parliamentary precinct CCTV security upgrade and the ongoing replacement of corporate information technology infrastructure and other plant and equipment. In 2018-19, a number of existing Members’ electorate offices will also be relocated to address changes arising from the 2017 Electoral Boundary Redistribution and other compliance and risk issues.

Legislative Assembly of Queensland
Project	Statistical Area	Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
LEGISLATIVE ASSEMBLY OF QUEENSLAND
Property, Plant and Equipment
Parliament House fire protection system	305		9,615		5,621		3,994
Parliament House data cabling	305		300				300
CCTV security upgrade	305		1,465		1,200		265
Information technology network infrastructure	305						500		Ongoing
Other property, plant and equipment	305						1,355		Ongoing
Electorate office accommodation program	Various						2,800		Ongoing
Total Property, Plant and Equipment							9,214
TOTAL LEGISLATIVE ASSEMBLY OF QUEENSLAND (PPE)							9,214

72

Capital Statement 2018-19

3.13 LOCAL GOVERNMENT, RACING AND MULTICULTURAL AFFAIRS

Department of Local Government, Racing and Multicultural Affairs

In 2018-19, the Department of Local Government, Racing and Multicultural Affairs has capital purchases of $3.3 million and capital grants of $316.7 million.

Program Highlights (Property, Plant and Equipment)

• $1 million to safeguard the security of the Northern Peninsula Area Water Supply System through the replacement of existing asbestos cement pipelines.

• $1.3 million to develop a new grants management system to improve and simplify the administration of grants to local governments.

• $965,000 for Indigenous infrastructure projects which aim to improve environmental health conditions for people living in major communities in Indigenous council areas.

Program Highlights (Capital Grants)

• $147.8 million for the Works for Queensland program to support local governments in regional Queensland undertake job-creating maintenance and minor infrastructure works.

• $50 million for the Indigenous Councils Critical Infrastructure Program for water, wastewater and solid waste infrastructure in Indigenous communities and to develop options for a long-term infrastructure program in Indigenous communities including the role of Indigenous councils.

• $41.7 million for the Local Government Grants and Subsidies Program which provides funding for priority infrastructure projects to meet identified community needs and to support projects that will enhance sustainable and liveable communities.

• $51.4 million under the Racing Infrastructure Fund to assist the Queensland racing industry improve racing infrastructure across the State.

• $10.5 million for the Whitsunday Coast Airport Terminal Expansion Project to remediate the existing runway surface and to upgrade the terminal to meet domestic demand.

• $4.5 million to upgrade the Torres Shire Council’s drinking-water-treatment infrastructure including water filtration and other related infrastructure on Thursday Island and Horn Island.

73

Capital Statement 2018-19

Local Government, Racing and Multicultural Affairs
Project	Statistical Area		Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
DEPARTMENT OF LOCAL GOVERNMENT, RACING AND MULTICULTURAL AFFAIRS
Property, Plant and Equipment
Northern Peninsula Area Water Supply System - Replacement of Asbestos Cement Pipelines		315		5,000				1,000		4,000
Implementing More Effective Funding Grants to Local Government		Various		1,300				1,300
Other Indigenous Infrastructure		315		1,068		103		965
Other Property, Plant and Equipment		Various						25		Ongoing
Total Property, Plant and Equipment								3,290
Capital Grants
Works for Queensland		Various		600,000		302,189		147,811		150,000
Indigenous Councils Critical Infrastructure Program		Various		120,000		40,000		50,000		30,000
Local Government Grants and Subsidies Program		Various						41,676		Ongoing
Whitsunday Coast Airport Terminal Expansion Project		312		15,000		4,500		10,500
Torres Shire Council Water Treatment Infrastructure Upgrade		315		12,000				4,500		7,500
National Insurance Affordability Initiative - Australian Government		307		17,000		12,020		4,980
Major Infrastructure Program - Stage 6		315		15,000		7,500		3,750		3,750
Kowanyama Aboriginal Shire Council Economic Growth and Jobs Initiative		315		1,100				1,100
Kuranda Skyrail and Infrastructure Levy		306						744		Ongoing
Racing Infrastructure Fund		Various		120,217		18,744		51,431		50,042
Other Capital Grants		308		400		200		200
Total Capital Grants								316,692
TOTAL LOCAL GOVERNMENT, RACING AND MULTICULTURAL AFFAIRS (PPE)								3,290
TOTAL LOCAL GOVERNMENT, RACING AND MULTICULTURAL AFFAIRS (CG)								316,692

74

Capital Statement 2018-19

3.14 NATURAL RESOURCES, MINES AND ENERGY

The Natural Resources, Mines and Energy portfolio includes the Department of Natural Resources, Mines and Energy, statutory bodies reporting to the Minister for Natural Resources, Mines and Energy, and energy and water supply government-owned corporations. The portfolio’s capital program for 2018-19 is $2.474 billion.

Department of Natural Resources, Mines and Energy

Total capital purchases for the Department of Natural Resources, Mines and Energy are estimated to be $91 million in 2018-19. Total capital grants for the department are estimated to be $50 million in 2018-19.

Program Highlights (Property, Plant and Equipment)

• $66 million to construct the Rookwood Weir to provide drought contingency supplies.

• $5 million to meet dam safety requirements at the Glen Niven Dam.

Program Highlights (Capital Grants)

• Up to $50 million to support the development of concentrated solar thermal with storage projects to provide clean and baseload power.

CS Energy Limited

Total capital expenditure planned for 2018-19 is $225.5 million. This reflects CS Energy’s continued commitment to ongoing reliability and efficiency of generation plant at its power station sites.

Program Highlights (Property, Plant and Equipment)

• $104.6 million to improve the Callide Power Station, including $87.9 million for overhaul work.

• $8.6 million to develop and refurbish the Kogan Creek Mine.

• $90.5 million to improve the Kogan Creek Power Station, including $52.2 million for overhaul work.

• $4.8 million to improve the Wivenhoe Power Station, including $2.4 million for overhaul work.

• $17 million to improve business systems at Brisbane head office.

75

Capital Statement 2018-19

Stanwell Corporation Limited

Stanwell Corporation’s planned capital purchases for 2018-19 are $208.6 million, which primarily relates to replacement, refurbishment and upgrades to plant and equipment at the various Queensland power station sites.

Program Highlights (Property, Plant and Equipment)

• $69.8 million to overhaul Tarong Power Station, including $39.9 million for the major overhaul, $12.1 million to overhaul the high and intermediate pressure turbines and $17.8 million for various small projects.

• $54 million to overhaul the Stanwell Power Station, including $19.7 million for the major overhaul, $17.9 million to upgrade the control system, $5.2 million for the unit cooling water mid life condenser re-tube and $11.2 million for various small projects.

• $31.9 million to overhaul Meandu Mine, including $7 million for the dragline overhauls, $3.5 million for Coal Handling Preparation Plant replacements and upgrades, $3.8 million for the mine development area, $2.3 million for ash storage project and $15.3 million for various small projects

• $23 million to overhaul Swanbank, including $20.3 million for the Swanbank Power Station major overhaul and $2.7 million for various small projects.

• $21.2 million to upgrade information technology, including $15.3 million for hardware and software upgrades and $5.9 million for upgrades and replacements of major ICT systems.

• $5 million to develop future gas supply to Swanbank Power Station.

Energy Queensland

Energy Queensland Limited’s planned capital expenditure for 2018-19 of $1.461 billion forms part of its commitment to providing a safe, secure and highly reliable electricity supply to all Queensland customers that is both cost effective and dependable, by continuing a focus on efficiencies, asset management, and network capability.

The capital program aims to improve and reinforce electricity supplies across Queensland to meet customer needs, especially to cover peak electricity demand periods, and to support the increased use of residential solar power, storage batteries, electric vehicles, and air-conditioners.

Program Highlights (Property, Plant and Equipment)

• $29 million to continue work on the multi-stage SunCoast Power Project to increase network capacity and improve reliability on the Sunshine Coast.

76

Capital Statement 2018-19

• $15.9 million to upgrade the Mackay Tennyson Street Substation to improve network performance.

• $2.2 million to continue to redevelop the Bundall Substation to increase network capacity and improve reliability.

• $2.6 million to upgrade the Labrador Substation to improve network performance.

• $2.6 million to upgrade the Clayfield Substation to improve network performance.

• $1.5 million to upgrade the Palm Beach Substation to improve network performance.

• $1.1 million to upgrade the Caboolture West Substation to improve network performance.

• $345,000 to upgrade the Amamoor Substation to improve network performance.

Powerlink Queensland

Powerlink Queensland is the high voltage electricity transmission entity for Queensland. Powerlink’s planned capital expenditure for 2018-19 is $232.7 million and is predominantly focused on refit or replacement of aged equipment and assets to ensure continued reliable supply of electricity.

Program Highlights (Property, Plant and Equipment)

• $8.7 million to refit the Collinsville-Proserpine transmission line in North Queensland.

• $7 million to replace assets at the Gin Gin Substation, near Bundaberg.

• $4.2 million to install a new transformer at Calvale and reconfigure the 132kV network to ensure continued reliability of supply to the Fitzroy area.

• $3.6 million to replace primary plant and secondary systems at the Mackay Substation.

• $3.6 million to replace secondary systems at the Rocklea Substation in Brisbane.

• $2.4 million to replace secondary systems at the Calvale and Callide B substations in the Fitzroy area.

• $2.6 million to replace secondary systems at the Nebo Substation near Mackay.

SunWater Limited

SunWater’s planned capital purchases for 2018-19 total $25.6 million. This will focus on the continuation of a reliable bulk water supply for regional Queensland and ensuring SunWater’s dams are enhanced to meet the extreme weather events that the State can experience.

77

Capital Statement 2018-19

Program Highlights (Property, Plant and Equipment)

• $9.1 million to repair, maintain, renew and enhance existing water infrastructure assets and water supply schemes across regional Queensland, as part of SunWater’s annual program of works.

• $1.2 million to improve Beardmore Dam, with planned construction to extend the existing channel structure a further 40 metres downstream to safeguard against future extreme weather events.

• $345,000 to finalise and establish the Emergency Management Response Plan associated with the continued improvement of SunWater’s dedicated flood control room, including specific computer and communications systems fit out and associated software.

• $3.6 million to pursue business development opportunities such as hydro-electric power, solar energy and raising of Burdekin Falls Dam to increase capacity.

• $6.2 million to establish and fit out a new office location in Brisbane.

• $640,000 to develop software and hardware involving the renewal and replacement of computer equipment and security enhancements to SunWater’s business and data networks.

• $4.5 million for plant and equipment, including capital expenditure associated with vehicles, trailers, pumps, and valves, required for SunWater’s operations, and minor works.

Gladstone Area Water Board

The Gladstone Area Water Board (GAWB) has planned capital of $22.8 million for 2018-19. The capital program is focused on continuing effective and safe operations of GAWB’s property, plant and equipment.

Program Highlights (Property, Plant and Equipment)

• $3.6 million to maintain the offline standby storage and repump station, provide 14 days of raw water supply independent of critical infrastructure at Awoonga Dam, mitigate risk and facilitate planned maintenance of critical infrastructure.

• $829,000 to replace flowmeters and purchase new mobile emergency generators to provide backup power supply for critical infrastructure in relation to the mobile emergency electrical generation units project.

• $547,000 to maintain East End Reservoir, including works designed to replace the roof, both internal and external ladders, carry out repairs to the construction joints and undertake patch repairs to the concrete walls and anchor blocks of the reservoir.

78

Capital Statement 2018-19

• $750,000 to provide a condition assessment of South Trees Pipe and to install cathodic protection on South Trees Bridge to protect against corrosion of the bridge supports that carry critical pipelines.

Mount Isa Water Board

Total planned capital expenditure for the Mount Isa Water Board (MIWB) for 2018-19 is $9 million. The capital program is focused on the continuing cost-effective, reliable, and safe operation of MIWB’s plant, property and equipment.

Program Highlights (Property, Plant and Equipment)

• $2 million for the Mount Isa Terminal Reservoir storage tanks project, which will see completion of the construction of new portable storage tanks to replace the aged South Tank, eliminating water losses, improving water supply reliability and addressing water quality assurance requirements.

• $1 million to commence procurement of pipe material for the renewal of selected sections of Moondarra to Mount Isa Terminal Reservoir pipeline, particularly those aged and high-risk segments downstream of Lake Moondarra Booster Station.

• $1.7 million to continue renewal of the high-voltage yards and electro-mechanical equipment in the Lake Julius power system, particularly the commencement of restoration and improvement works on the existing Hilton take-off yard.

Seqwater

Planned capital purchases for Seqwater in 2018-19 are $147.2 million. The capital program is focused on the continuation of a safe, secure and reliable water supply for South East Queensland, as well as providing essential flood mitigation services and managing catchment health.

Seqwater has facilities located throughout South East Queensland. These require minor works and renewals, as well as upgrades and compliance driven works to ensure effective operation.

Program Highlights (Property, Plant and Equipment)

• $1 million to continue planning works for the Lake MacDonald Dam safety upgrade to comply with dam safety regulations.

• $10 million for the Sideling Creek Dam safety upgrade to comply with dam safety regulations.

• $1.5 million to continue to refurbish and upgrade 20 filters at the Mount Crosby East Bank Water Treatment Plant to maintain and improve capacity and reliability.

79

Capital Statement 2018-19

• $1.7 million to refurbish the Somerset Hydro Electrical Plant to allow the plant to resume operations and provide renewable energy.

• $13 million to upgrade and improve the Leslie Harrison Dam to comply with dam safety regulations.

• $3 million to continue the planning for the proposed pipeline connection for Beaudesert to the water grid to secure long-term water supply.

Natural Resources, Mines and Energy
Project	Statistical Area		Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
DEPARTMENT OF NATURAL RESOURCES, MINES AND ENERGY
Property, Plant and Equipment
Rookwood Weir		308		352,000				66,000		286,000
Glen Niven Dam		307		5,000				5,000
Strategic Resources Exploration Program		Various		7,125		1,995		2,422		2,708
Coal Mine Workers’ Health Scheme		Various		4,018		916		2,630		472
Financial Assurance Framework Reform Program		305		3,975		1,384		2,591
Stock Route network		Various						800		Ongoing
Systems development		305						3,075		Ongoing
Other property, plant and equipment		Various						7,166		Ongoing
Water Monitoring network		Various						1,312		Ongoing
Total Property, Plant and Equipment								90,996
Capital Grants
Solar Thermal Plant contribution		Various		50,000				50,000
Total Capital Grants								50,000
CS ENERGY LIMITED
Property, Plant and Equipment
Callide Power Station enhancements, overhauls and refurbishment		308		104,596				104,596
Kogan Creek Power Station enhancements, overhauls and refurbishment		307		90,515				90,515
Kogan Creek Mine developments and refurbishment		307		8,614				8,614

80

Capital Statement 2018-19

Natural Resources, Mines and Energy
Project	Statistical Area	Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000	Budget 2018-19 $‘000		Post 2018-19 $‘000
Wivenhoe Power Station enhancements, overhauls and refurbishment	310		4,752			4,752
Upgrade of corporate information systems to support the business	305		17,001			17,001
Total Property, Plant and Equipment						225,478
STANWELL CORPORATION LIMITED
Property, Plant and Equipment
Swanbank Power Station
Swanbank Power Station Gas Supply Strategy	307					5,000		Ongoing
Swanbank Power Station - Overhauls	310					20,250		Ongoing
Swanbank Power Station - Minor works	310					2,708		Ongoing
Barron Gorge Power Station - Minor works	306					293		Ongoing
Kareeya Power Station - Minor works	306					1,682		Ongoing
Koombooloomba Power Station - Minor works	306					1,499		Ongoing
Mica Creek Power Station
Mica Creek Power Station - Minor works	315					257		Ongoing
Meandu Mine
Meandu Mine - Coal handling preparation plant replacements and upgrades	319					3,450		Ongoing
Meandu Mine - Development Program	319					3,809		Ongoing
Dragline overhaul at Meandu Mine	319					7,000		Ongoing
Meandu Mine - Asset refurbishments	319					17,595		Ongoing
Stanwell Power Station
Stanwell Power Station - Other sustaining projects	308					11,249		Ongoing
Stanwell Power Station - Control system upgrade	308					17,930		Ongoing
Stanwell Power Station - Mid life condenser retube	308					5,173		Ongoing

81

Capital Statement 2018-19

Natural Resources, Mines and Energy
Project	Statistical Area		Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
Stanwell Power Station - Overhauls		308						19,668		Ongoing
Tarong Power Station
Tarong Power Station - High and intermediate pressure turbine overhauls		319						12,070		Ongoing
Tarong Power Station - Other sustaining projects		319						17,810		Ongoing
Tarong Power Station - Overhauls		319						39,943		Ongoing
Other Capital Projects
Hardware and software upgrades		Various						15,300		Ongoing
Enterprise program of works		Various						5,866		Ongoing
Total Property, Plant and Equipment								208,552
ENERGY QUEENSLAND
Property, Plant and Equipment
Standard Control Services
Augmentation
Dysart Substation upgrade		312		12,839		1,172		4,512		7,155
Moranbah Substation upgrade		312		6,764		6,547		217
Network initiated capacity augmentation - Brisbane		Various		44,856				44,856
Network initiated capacity augmentation - Gold Coast		309		20,157				20,157
Network initiated capacity augmentation - Ipswich		310		15,700				15,700
Network initiated capacity augmentation - Sunshine Coast		316		23,379				23,379
Other regulated customer initiated capital work - augmentation		Various		77,433				77,433
Real Time Capacity Architecture		Various		2,172		1,884		288
Safety Net Implementation		Various		7,324		6,604		720
SunCoast Power Project		316		89,339		33,975		29,023		26,341
Yarranlea Substation upgrade		307		8,138		2,314		888		4,936
Sub-total Augmentation								217,173

82

Capital Statement 2018-19

Natural Resources, Mines and Energy
Project	Statistical Area		Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
Replacements
Amamoor Substation upgrade		319		2,877		2,532		345
Barcaldine Substation upgrade		315		3,410		1,170		2,237		3
Bromelton Substation upgrade		311		2,670		2,385		285
Bundall Substation upgrade		309		9,838		7,598		2,240
Caboolture West - Replace transformers and relays		313		13,687		12,571		1,116
Charters Towers Substation upgrade		318		3,930		1,368		1,894		668
Chermside Substation upgrade		302		5,594		68		611		4,915
Circuit Breaker Replacement Program		Various		3,635		2,150		1,484		1
Clayfield Substation upgrade		305		8,006		811		2,583		4,612
Conductor Clearance Program		Various		46,020				46,020
Conductor Clearance to Structure		Various		18,237		8,118		10,119
Emerald Cornet Substation upgrade		308		3,477		448		2,010		1,019
Glenore Grove Substation upgrade		310		5,805		71		286		5,448
Grantham Substation upgrade		317		2,456		2,157		299
Hemmant Substation upgrade		301		8,957		5,046		3,787		124
Hendra - Clayfield underground feeder		305		11,742		125		76		11,541
Hendra - Nundah underground feeder		302		8,398		96		133		8,169
Hendra Substation upgrade		305		2,046		67		262		1,717
Herring Lagoon Substation upgrade		301		3,165		1,033		2,094		38
Howard Substation upgrade		319		8,194		246		1,788		6,160
Inala Substation upgrade		310		3,990		1,308		2,460		222
Kenmore Substation upgrade		304		3,073		454		2,412		207
Kilcoy Substation upgrade		313		10,795		140		467		10,188
Labrador Substation upgrade		309		16,879		13,994		2,576		309
Lawnton Substation upgrade		314		3,995		3,578		417
Lota Substation upgrade		301		3,913		2,412		1,315		186
Low Voltage Small Copper replacement (Stage 2 and 3)		Various		98,484		24,172		21,456		52,856

83

Capital Statement 2018-19

Natural Resources, Mines and Energy
Project	Statistical Area	Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
Mackay Tennyson Street Substation upgrade	312		21,655		4,805		15,904		946
Meeandah - Whinstanes underground feeder	302		8,692		48		187		8,457
Miami Substation upgrade	309		3,459		2,641		818
Network initiated replacement works - Brisbane	Various		100,276				100,276
Network initiated replacement works - Gold Coast	309		31,045				31,045
Network initiated replacement works - Ipswich	310		24,141				24,141
Network initiated replacement works - Sunshine Coast	316		32,072				32,072
Network initiated replacement works - Wide Bay	319		3,253				3,253
Other regulated customer initiated capital work - replacements	Various		200,842				200,842
Palm Beach Substation upgrade	309		15,333		13,835		1,487		11
Protection replacement	Various		10,229		4,291		3,100		2,838
Queensport-Bulimba underground feeder	305		5,513		4,922		586		5
Redcliffe Substation upgrade	313		7,871		234		512		7,125
Richlands Substation upgrade	310		4,386		57		400		3,929
South Pine to Hays Inlet - Replace overhead earth wire with optical fibre	314		4,863		2,356		2,507
Surfers Paradise Substation upgrade	309		8,461		55		634		7,772
Toolara Forest Substation upgrade	319		5,415		2,058		2,007		1,350
Toowong Substation upgrade	305		3,757		1,244		1,935		578
Zillmere Substation upgrade	302		3,211		3,128		83
Sub-total Replacements							532,561
Connections
Connections - Brisbane	Various		51,693				51,693
Connections - Gold Coast	309		8,993				8,993
Connections - Ipswich	310		6,257				6,257
Connections - Sunshine Coast	316		7,155				7,155

84

Capital Statement 2018-19

Natural Resources, Mines and Energy
Project	Statistical Area		Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
Other regulated customer initiated capital work (standard control services)		Various		86,799				86,799
Sub-total Connections								160,897
Sub-total Standard Control Services								910,631
Non-System Capital Expenditure
Cairns - Bunda Street		306		5,402				5,402
Cairns Depot development		306		3,271		1,358		1,913
Information and communication technologies		305		20,280		3,200		3,000		14,080
Information and communication technologies		Various		42,129		8,815		2,795		30,519
Property - Minor Program for 2018-19		Various		58,059				58,059
Property and buildings		Various		27,983				27,983
Proserpine redevelopment		312		3,641				3,641
Searle Street Maryborough redevelopment		319		3,144		148		2,996
Tools and equipment		305		1,935				1,935
Tools and equipment		Various		6,065				6,065
Vehicles - Energex		305		28,800				28,800
Vehicles - Ergon Energy		Various		30,200				30,200
Sub-total Non-System Capital Expenditure								172,789
Alternative Control Services
Customer initiated works - Gold Coast		309		7,177				7,177
Customer initiated works - Wide Bay/Burnett		319		572				572
Customer initiated works - Brisbane		Various		74,736				74,736
Customer initiated works - Ipswich		310		6,068				6,068
Customer initiated works - Sunshine Coast		316		1,412				1,412
Other regulated customer initiated capital work (alternative control services)		Various		58,651				58,651
Sub-total Alternative Control Services								148,616

85

Capital Statement 2018-19

Natural Resources, Mines and Energy
Project	Statistical Area		Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
Non-Regulated Capital Expenditure
Aurukun generator replacement		315		12		10		2
Embedded Generators - Energex		305		455				455
Energy meters in isolated communities		315		7,305		7,125		180
Environment Related Projects - Torres Strait		315		2,125		1,708		417
Isolated Systems augmentation and upgrades		Various		13,302				1,170		12,132
Multiple Site Line reconductor program		315		1,064				316		748
Other isolated capital work		Various		19,072		202		18,870
Unregulated metering and metering dynamics		305		46,084				46,084
Infrastructure services		Various		30,393				30,393
Sub-total Non-Regulated Capital Expenditure								97,887
ICT Capital Expenditure
Digital Office Capital Expenditure - Energex		305		63,280				63,280
Digital Office Capital Expenditure - Ergon Energy		Various		55,441				55,441
Ergon Energy Retail capital expenditure		305		12,500				12,500
Sub-total ICT Capital Expenditure								131,221
Total Property, Plant and Equipment								1,461,144
POWERLINK QUEENSLAND
Property, Plant and Equipment
Callide A / Calvale 132 kilovolt network reinvestment		308		22,500		11,212		4,200		7,088
Collinsville to Proserpine transmission line refit		312		34,300		14,687		8,700		10,913
Mackay Substation replacement		312		24,500		16,670		3,600		4,230
Rocklea Substation secondary systems replacement		303		21,100		14,046		3,600		3,454
Stanwell Substation secondary systems replacement		308		19,300		17,844		1,200		256
Nebo Substation primary plant replacement		312		22,500		14,369		1,000		7,131

86

Capital Statement 2018-19

Natural Resources, Mines and Energy
Project	Statistical Area	Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
Calvale and Callide B Substation secondary systems replacement	308		21,800		8,869		2,400		10,531
Nebo secondary systems replacement	312		21,000		7,056		2,600		11,344
Gin Gin Substation rebuild	319		22,800		5,209		7,000		10,591
Total non prescribed transmission network connections	Various						55,100		Ongoing
Total Other Projects	Various						143,300		Ongoing
Total Property, Plant and Equipment							232,700
SUNWATER LIMITED
Property, Plant and Equipment
Callide water supply refurbishment and enhancement	308						882		Ongoing
Emerald irrigation and water supply refurbishment and enhancement	308						361		Ongoing
Paradise Dam water supply refurbishment and enhancement	319						319		Ongoing
Beardmore Dam - Thuraggi channel repair	307						1,230		Ongoing
Eton irrigation and water supply refurbishment and enhancement	312						570		Ongoing
Eungella pipeline refurbishment and enhancement	312						304		Ongoing
Mareeba irrigation and water supply refurbishment and enhancement	315						714		Ongoing
Minor works	Various		2,602				2,602
Plant and equipment	Various		1,875				1,875
Software development and hardware	Various		640				640
Blackwater pipeline refurbishment and enhancement	308						299		Ongoing
Bowen Broken water supply refurbishment and enhancement	312						428		Ongoing
Bundaberg irrigation and water supply refurbishment and enhancement	319						1,197		Ongoing
Burdekin irrigation and water supply refurbishment and enhancement	318						1,328		Ongoing

87

Capital Statement 2018-19

Natural Resources, Mines and Energy
Project	Statistical Area		Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
Burdekin Moranbah Pipeline refurbishment and enhancement		312						497		Ongoing
Awoonga-Callide pipeline refurbishment and enhancement		308						467		Ongoing
Burdekin water supply refurbishment and enhancement		318						392		Ongoing
Business development opportunities		305		3,620				3,620
Stanwell pipeline refurbishment and enhancement		308						835		Ongoing
SunWater office relocation		305		6,232				6,232
Tarong pipeline refurbishment and enhancement		319						485		Ongoing
Emergency flood management response plan		305						345		Ongoing
Total Property, Plant and Equipment								25,622
GLADSTONE AREA WATER BOARD
Property, Plant and Equipment
Hatchery Relocation Project		308		6,522		218		2,950		3,354
Connection to Gladstone Regional Council Kirkwood Reservoir		308		7,003		267		1,272		5,464
Automation projects		308		2,655		724		1,931
Offline Storage and Repump Station		308		33,757		30,130		3,627
Mobile emergency electrical generation units, Flowmeter replacements		308		1,193		364		829
Condition assessment of South Trees Pipe		308		1,250		500		750
Supervisory control and data acquisition telemetry network review		308		1,365		428		937
Additional corrosion protection Curtis Island		308		689		141		548
East End Reservoir various works		308		1,790		1,243		547
Sewerage Treatment Plant replacement and irrigation area		308		1,261		662		599
Minor works		308		14,727		5,904		8,823
Total Property, Plant and Equipment								22,813

88

Capital Statement 2018-19

Natural Resources, Mines and Energy
Project	Statistical Area		Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
MOUNT ISA WATER BOARD
Property, Plant and Equipment
Road access improvement		315		773		137		636
Critical spares procurement		315		937		337		600
Lake Moondarra Booster Pump Station oil circuit breaker replacement		315		354		248		106
Asset enhancements		315						219		Ongoing
Asset renewals		315						483		Ongoing
Other asset replacements and enhancements		315						66		Ongoing
Power reliability Moondarra system		315		1,289		1,074		215
Power reliability Hilton - Lake Julius		315		7,763		1,011		1,742		5,010
Lake Julius power pole replacement		315						280		Ongoing
Mount Isa Terminal Reservoir storage tanks		315		2,887		891		1,996
Operations and Maintenance asset requirements		315		1,292		833		143		316
Upgrade maintenance access to pump stations		315		512		85		178		249
Chlorine dose equipment upgrade		315		3,602				364		3,238
Fire supression		315		310				310
Mount Isa City Council supply - Diesel backup		315		1,302				157		1,145
Moondarra to Mount Isa Terminal Reservoir pipeline upgrade		315		2,881				1,000		1,881
Control systems supervisory control and data acquisition upgrade		315		1,068				532		536
Total Property, Plant and Equipment								9,027
SEQWATER
Property, Plant and Equipment
Lake MacDonald Dam upgrade - Stage 2		316		8,559		7,514		1,045
Sideling Creek Dam Safety upgrade - Stage 1		314		18,000		1,957		10,000		6,043
Mount Crosby East Bank Water Treatment Plant filtration upgrade		310		34,171		1,678		1,500		30,993

89

Capital Statement 2018-19

Natural Resources, Mines and Energy
Project	Statistical Area		Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
Somerset Hydro refurbishment		310		12,620		10,671		1,699		250
Beaudesert Water Supply Zone upgrade		311		3,082		82		3,000
Leslie Harrison Dam safety upgrade		301		24,572		2,072		13,000		9,500
Other infrastructure capital works		Various						99,315		Ongoing
Non-infrastructure capital works		Various						5,344		Ongoing
Fleet renewal		Various						1,700		Ongoing
Information and Communication Technology Capital Program		Various						10,593		Ongoing
Total Property, Plant and Equipment								147,196
TOTAL NATURAL RESOURCES, MINES AND ENERGY (PPE)								2,423,528
TOTAL NATURAL RESOURCES, MINES AND ENERGY (CG)								50,000

90

Capital Statement 2018-19

3.15 PREMIER AND CABINET

Department of the Premier and Cabinet

The Department of the Premier and Cabinet (including Ministerial Offices and Office of the Leader of the Opposition) has planned a capital program of $2.1 million in 2018-19.

Program Highlights (Property, Plant and Equipment)

• $597,000 to upgrade multiple information and communication technology systems. This includes replacing the Joiners, Leavers and Movers System, upgrading the Performance Information Management System and enhancing the Queensland Integrated Legislation Lifecycle System.

• $450,000 to replace the Ministerial Firewall which forms part of the Ministerial Offices and Office of the Leader of the Opposition security platform.

Program Highlights (Capital Grants)

• $1 million as part of $12 million in total State funding to Screen Queensland to fit out a commercial property for screen production purposes.

Premier and Cabinet
Project	Statistical Area		Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
DEPARTMENT OF THE PREMIER AND CABINET
Property, Plant and Equipment
Information and Communication Technology Systems Upgrade		305		652		55		597
Ministerial Offices and Office of the Leader of the Opposition Firewall		305		450				450
Total Property, Plant and Equipment								1,047
Capital Grants
Screen Production Facility		301		1,015				1,015
Total Capital Grants								1,015
TOTAL PREMIER AND CABINET (PPE)								1,047
TOTAL PREMIER AND CABINET (CG)								1,015

91

Capital Statement 2018-19

3.16 PUBLIC SAFETY BUSINESS AGENCY

The 2018-19 Public Safety Business Agency capital program of $254.1 million supports the delivery of essential frontline public safety services to Queensland communities.

The program will fund capital works, vehicles, information technology and other essential equipment for the Queensland Police Service, Queensland Fire and Emergency Services and the Office of the Inspector-General Emergency Management.

Queensland Fire and Emergency Services

In 2018-19, $82.3 million is provided for fire and emergency services facilities, urban and rural fire appliances, information and communications systems and equipment including:

• $4.3 million to commence replacement of the auxiliary fire and rescue stations at El Arish, Esk, Gracemere, Kilkivan, Wooroolin and Yarraman.

• $3.8 million to complete replacement of the auxiliary fire and rescue stations at Childers, Rathdowney and Richmond and an upgrade at Dirranbandi.

• $2.5 million to complete an upgrade of the permanent fire and rescue stations at Loganlea, Mount Ommaney and West Logan.

• $3 million to commence replacement of the permanent fire and rescue stations at Bracken Ridge and Chandler and a new station at Pimpama.

• $250,000 to commence the upgrade of the rural fire station at Logan Village to service the community of Yarrabilba and surrounds.

• $800,000 to complete an upgrade of the permanent fire and rescue station and communications centre at Rockhampton.

• $442,000 to complete a Rural Fire Service and State Emergency Service (SES) facility at Howard, collocated with a replacement police station.

• $2.1 million to complete an upgrade of the Horn Island collocated Rural Fire Service and SES facility.

• $3 million to commence infrastructure works for the south western region headquarters and replacement of the permanent station at Charlton.

• $50,000 to commence a new emergency services facility at Maleny.

• $2.1 million to complete an upgrade of the mixed permanent-auxiliary fire and rescue station at Mount Isa and to commence replacement of the combined area office and the Rural Fire Service and SES facility at Mount Isa.

92

Capital Statement 2018-19

• $2 million to commence the Cairns fire communications centre upgrade and $500,000 to complete the Charleville area office refurbishment.

• $400,000 to commence the Weipa emergency and disaster centre.

• $2.5 million for strategic land acquisitions and Rural Operations land purchases.

• $44.3 million for replacement and new urban and rural fire appliances.

• $4.6 million for minor capital works across the State including upgrades of fire and rescue station amenities.

• $5.8 million for operational, information and communications systems and equipment.

Queensland Police Service

In 2018-19, $123.3 million is provided for Queensland Police Service facilities, information and communication technology and other essential equipment including:

• $10.6 million to continue the new Counter-Terrorism and Community Safety Training Centre at Wacol.

• $19.3 million to commence construction of a warehouse facility at Wacol.

• $5.2 million to continue to refurbish heritage buildings at Wacol.

• $11.7 million to complete the replacement police station and district headquarters at Caboolture.

• $3.7 million to continue to upgrade the West End police station.

• $2.4 million to commence construction of a new police facility at Arundel.

• $1.3 million to complete the replacement police station at Kilcoy.

• $724,000 to complete a replacement police station at Howard, collocated with a Rural Fire Service and SES facility and a replacement police station at Bowen.

• $900,000 to continue the planning and design of replacement police stations or alternate police facilities at Beaudesert, Caboolture, Coolum, Mount Morgan, Nambour and Pormpuraaw, the new station at Highfields and to upgrade the stations at Aurukun and Atherton.

• $400,000 to upgrade the Logan Village Neighbourhood Police Beat to service the Yarrabilba community and surrounds.

• $30 million for new and replacement police service vehicles.

• $5.4 million for new and replacement police service vessels.

93

Capital Statement 2018-19

• $21.2 million for operational, information and communications systems and equipment including the Public Safety Network.

• $9.4 million for minor capital works including Newtown Neighbourhood Police Beat and $1.2 million for other plant and equipment across the State.

Public Safety Business Agency - Other Departmental Capital

• $31.8 million to replace rotary-wing aircraft, which deliver aeromedical retrieval and transfer services and perform search and rescue and disaster response operations.

• $7.4 million to maintain aircraft.

• $8.9 million to support Queensland Ambulance Service information and communication technology.

• $300,000 for other departmental information systems development.

Public Safety Business Agency
Project	Statistical Area		Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
PUBLIC SAFETY BUSINESS AGENCY
Property, Plant and Equipment
Queensland Fire and Emergency Services
Buildings
Bracken Ridge replacement permanent station		302		6,000				1,500		4,500
Cairns communications centre upgrade		306		2,500				2,000		500
Chandler replacement permanent station		301		4,000				1,000		3,000
Charleville area office refurbishment		315		1,200		700		500
Charlton regional headquarters upgrade and firecom infrastructure		317		7,000				2,000		5,000
Charlton replacement permanent station		317		3,600				1,000		2,600
Childers replacement auxiliary station		319		3,731		3,372		359
Dirranbandi auxiliary station upgrade		307		800		300		500

94

Capital Statement 2018-19

Public Safety Business Agency
Project	Statistical Area	Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
El Arish replacement auxiliary station	306		1,800				900		900
Esk replacement auxiliary station	310		1,800				800		1,000
Gracemere replacement auxiliary station	308		2,100				100		2,000
Horn Island collocated rural fire and SES facility upgrade	315		2,800		690		2,110
Howard rural fire and SES facility, collocated with police station	319		4,762		4,320		442
Kilkivan replacement auxiliary station	319		1,800				900		900
Loganlea permanent station upgrade	311		500				500
Maleny emergency services1 facility	316		2,500				50		2,450
Mount Isa replacement combined area office	315		2,500		500		2,000
Mount Isa rural fire and SES facility upgrade	315		4,000				100		3,900
Mount Ommaney permanent station upgrade	304		1,500		50		1,450
Pimpama new permanent station	309		3,000				500		2,500
Rathdowney replacement auxiliary station	311		1,900		200		1,700
Richmond replacement auxiliary station	315		2,200		987		1,213
Rockhampton permanent station upgrade and communications centre	308		4,553		3,753		800
Weipa emergency and disaster centre	315		1,200				400		800
West Logan permanent station upgrade	311		500				500
Wooroolin replacement auxiliary station	319		1,400				800		600
Yarrabilba rural fire station2 upgrade and new facility	311		4,250				250		4,000

95

Capital Statement 2018-19

Public Safety Business Agency
Project	Statistical Area	Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
Yarraman replacement auxiliary station	307		1,500				800		700
Minor works	Various						4,600		Ongoing
Land
Strategic land acquisitions	Various						2,400		Ongoing
Rural Operations land purchases	Various						100		Ongoing
Plant and Equipment
Rural fire appliances	Various						15,305		Ongoing
Urban fire appliances	Various						29,014		Ongoing
Communications equipment	Various						5,503		Ongoing
Other plant and equipment	Various						250		Ongoing
Sub-total Queensland Fire and Emergency Services							82,346
Queensland Police Service
Buildings
Arundel new facility	309		11,500				2,400		9,100
Atherton station upgrade	306		6,190		190		100		5,900
Aurukun station and watchhouse upgrade	315		6,700		200		100		6,400
Beaudesert replacement station	311		5,890		390		100		5,400
Bowen replacement station	312		8,305		7,914		391
Caboolture replacement station and district headquarters	313		15,800		4,113		11,687
Caboolture refurbishment of old station and watchhouse	313		6,553		143		100		6,310
Coolum replacement station	316		2,700				100		2,600
Highfields new station	317		2,770		129		100		2,541
Howard replacement station, collocated with rural fire and SES facility	319		3,901		3,568		333
Kilcoy replacement station	313		2,100		752		1,348
Logan Village Neighbourhood Police Beat upgrade	311		400				400
Mount Morgan replacement station	308		2,100		100		100		1,900
Nambour replacement station	316		9,040		140		100		8,800
Pormpuraaw replacement station and watchhouse	315		8,200		230		100		7,870
Wacol Counter-Terrorism and Community Training Centre	310		46,700		1,400		10,600		34,700

96

Capital Statement 2018-19

Public Safety Business Agency
Project	Statistical Area		Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
Wacol heritage buildings refurbishment		310		5,860		169		5,200		491
Wacol warehouse facility		310		26,000		1,050		19,280		5,670
West End station upgrade		305		4,300		50		3,740		510
Air conditioning plant replacement program		Various						4,000		Ongoing
Closed circuit camera upgrades in various watchhouses		Various						2,000		Ongoing
Minor works		Various						3,350		Ongoing
Plant and Equipment
Information and communication technology		Various						12,131		Ongoing
Public Safety Network		305						9,045		Ongoing
Vehicle replacement and growth		Various						29,951		Ongoing
Vessel management program		Various						5,360		Ongoing
Other plant and equipment		Various						1,200		Ongoing
Sub-total Queensland Police Service								123,316
Other Departmental
Rotary-wing aircraft replacement		Various		43,094		11,277		31,817
Aircraft maintenance		Various						7,421		Ongoing
Queensland Ambulance Service information systems development		Various						8,882		Ongoing
Other departmental information systems development		Various						300		Ongoing
Sub-total Other Departmental								48,420
Total Property, Plant and Equipment								254,082
TOTAL PUBLIC SAFETY BUSINESS AGENCY (PPE)								254,082

Notes:

1. Part of the $3 million commitment for a new complex for emergency services in Maleny. $1 million for this project is included in Strategic land acquisitions, offset by $500,000 for property disposal.

2. Part of the $5 million commitment for equipped fire and emergency services for the community of Yarrabilba and surrounds. $750,000 for this project is included in Urban fire appliances.

97

Capital Statement 2018-19

3.17 QUEENSLAND CORRECTIVE SERVICES

Queensland Corrective Services

Queensland Corrective Services’s capital purchases for 2018-19 of $167.8 million will primarily focus on prison infrastructure, perimeter security upgrades and correctional centre enhancements.

Program Highlights (Property, Plant and Equipment)

• $107 million of $241 million to provide an additional 348 cells at Capricornia Correctional Centre.

• $3.7 million of $126.9 million for the Borallon Training and Correctional Centre redevelopment.

• $20.5 million of $76.6 million to continue upgrading the perimeter security at a number of correctional centres as part of Stage 2 of the Perimeter Security Upgrade Program.

• $1.5 million to complete the $6 million Brisbane Women’s Correctional Centre enhancement project.

• $3.5 million of $8 million to complete the Woodford Correctional Centre enhancement project.

• $2.5 million to complete various prison infrastructure enhancement projects.

• $18.6 million to acquire other property, plant and equipment.

Queensland Corrective Services
Project	Statistical Area		Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
QUEENSLAND CORRECTIVE SERVICES
Property, Plant and Equipment
Queensland Corrective Services
Major Works - Correctional Centres
Capricornia Correctional Centre Expansion		308		241,000		13,403		107,000		120,597
Borallon Training and Correctional Centre		310		126,900		114,233		3,667		9,000
Perimeter Security Upgrade Program - Stage 2		Various		76,579		53,243		20,536		2,800

98

Capital Statement 2018-19

Queensland Corrective Services
Project	Statistical Area		Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
High Security Expansion for Women		310		16,000		502		10,498		5,000
Sub-total Major Works - Correctional Centres								141,701
Correctional Centre Enhancements
Brisbane Women’s Correctional Centre		310		6,000		4,520		1,480
Woodford Correctional Centre		313		8,011		4,542		3,469
Prison Infrastructure		Various		14,436		11,900		2,536
Sub-total Correctional Centre Enhancements								7,485
Other acquisitions of property, plant and equipment		Various						18,566		Ongoing
Sub-total Queensland Corrective Services								167,752
Total Property, Plant and Equipment								167,752
TOTAL QUEENSLAND CORRECTIVE SERVICES (PPE)								167,752

99

Capital Statement 2018-19

3.18 QUEENSLAND FIRE AND EMERGENCY SERVICES

Queensland Fire and Emergency Services

Most new and ongoing capital initiatives to support Queensland Fire and Emergency Services (QFES) operational capability are delivered by the Public Safety Business Agency. This includes fire and emergency services facilities, fire appliances and communications equipment.

QFES continues to be responsible for delivering operational equipment and information systems development to support the provision of fire and rescue and emergency management services throughout Queensland.

In 2018-19, QFES will invest $5.8 million in capital purchases and $897,000 in capital grants.

Program Highlights (Property, Plant and Equipment)

• $4 million for operational equipment, which may include protective clothing such as: fully encapsulated gas suits and equipment to service them, specialist and field-portable scientific analysis and detection equipment, and compressors for self-contained breathing apparatus. Equipment purchases may also include motorised swiftwater rescue craft, battery-powered rescue equipment, accommodation shelters and satellite communications hardware for deployable disaster response.

• $1.5 million for additions and upgrades to information systems.

• $250,000 for State Emergency Service (SES) on-boarding to the Government Wireless Network in South East Queensland, to support volunteers and local government and enhance an integrated emergency response.

Program Highlights (Capital Grants)

• $712,000 for State Emergency Service capital grants.

• $185,000 for Rural Fire Brigade capital grants.

100

Capital Statement 2018-19

Queensland Fire and Emergency Services
Project	Statistical Area		Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000	Budget 2018-19 $‘000		Post 2018-19 $‘000
QUEENSLAND FIRE AND EMERGENCY SERVICES
Property, Plant and Equipment
Operational equipment		Various					4,000		Ongoing
Information systems development		Various					1,500		Ongoing
SES on-boarding to the Government Wireless Network		Various		500			250		250
Total Property, Plant and Equipment							5,750
Capital Grants
Rural fire brigades		Various					185		Ongoing
State Emergency Service		Various					712		Ongoing
Total Capital Grants							897
TOTAL QUEENSLAND FIRE AND EMERGENCY SERVICES (PPE)							5,750
TOTAL QUEENSLAND FIRE AND EMERGENCY SERVICES (CG)							897

101

Capital Statement 2018-19

3.19 QUEENSLAND HEALTH

The Queensland public healthcare system comprises the Department of Health, Queensland Ambulance Service (QAS) and 16 independent Hospital and Health Services. The total capital program in 2018-19 for Queensland Health and the Council of the Queensland Institute of Medical Research (QIMR) is $985.5 million.

Queensland Health and Hospital and Health Services

The Queensland Health capital investment program works to ensure staff, patients and communities have access to contemporary health infrastructure that supports the delivery of health services. Health infrastructure that is fit for purpose and ensures value for money underpins the delivery of quality frontline services for patients and better health care in the community. The department takes a strategic view to ensure health infrastructure, healthcare technology and information communication technology (ICT) strengthen our public health system to meet the growing demand for world class facilities and services.

Program Highlights (Property, Plant and Equipment)

In 2018-19, Queensland Health will continue to invest in health infrastructure, capital works and purchases across a broad range of areas including hospitals, ambulance stations and vehicles, health technology, ICT, research and scientific services, mental health services and staff accommodation.

Hospital and health facility project highlights in 2018-19 will include:

• $80 million under the Priority Capital Program to be distributed across Hospital and Health Services and Health Support Queensland for a range of capital works projects to enhance, refurbish or replace existing infrastructure and to sustain and improve business and service level continuity. The program seeks to address legislative compliance (including fire safety and food safety), essential services (including electricity, water supply and sewerage), major plant and systems (including air-conditioners, chillers, lifts and infrastructure call systems) and major building elements (including foundations, floors, walls and roofs).

• $84.8 million as part of the Enhancing Regional Hospitals Program, to continue to deliver upgrades to the Hervey Bay and Gladstone Emergency Departments, to repurpose the Caloundra Health Service and to redevelop the Roma Hospital.

• $28.7 million as part of the Building Better Hospitals program, to redevelop Logan (including a new maternity ward), Caboolture and Ipswich hospitals and to commence planning and business case development for the Wide Bay region. The $679 million total funding also includes $5 million to refurbish three Cancer Council Queensland lodges.

102

Capital Statement 2018-19

• $1 million to commence construction of a new 42-bed residential drug rehabilitation and treatment facility in Rockhampton to improve access to specialist alcohol and other drug services for people living in Central Queensland.

• $1.4 million to fit out and purchase equipment for the new cardiac catheterisation laboratory at Cairns Hospital.

• $2.4 million to deliver a Magnetic Resonance Imaging (MRI) machine at Townsville Hospital.

• $4 million to deliver a Computed Tomography (CT) scanner for Mareeba Hospital.

• $3 million for the Children’s Health Queensland Imaging Informatics Program.

• $3 million for the Gold Coast Medical Imaging Informatics Solution.

• $53.3 million to continue to deliver projects as part of the Rural and Regional Infrastructure Package, including: to redevelop Blackall Hospital, Sarina Hospital, Kingaroy Hospital and Townsville Hospital Clinical Services, to construct a new Cairns Mental Health Unit, Mer (Murray) Island Building and staff accommodation across the State, and deliver a Maryborough Hospital Emergency Department and Specialist Outpatients Department.

• $16.6 million to continue delivery of projects funded under the Significant Regional Infrastructure Projects Program. Projects include: the refurbishment of the Boulia Community Hospital, the refurbishment and expansion of the Townsville Hospital Paediatric Unit, the construction of a new primary healthcare centre on Palm Island and three new Step Up Step Down mental health facilities in Bundaberg, Gladstone and Mackay.

• $28.1 million to establish a new Adolescent Extended Treatment Facility at the Prince Charles Hospital, two new Adolescent Step Up Step Down units in Brisbane and to refurbish two Adolescent Day Program spaces at Logan and the Gold Coast.

• $34.5 million to continue ongoing staged works as part of the Sunshine Coast University Hospital.

• $15.7 million to construct the new Rockhampton Hospital carpark. The facility will include 597 parking bays and will be designed to enable the construction of additional levels and parking bays to meet the future needs of the Rockhampton Hospital.

103

Capital Statement 2018-19

• $26.6 million as part of the $230 million Advancing Queensland’s Health Infrastructure Program. The program facilitates essential upgrades to health facilities and supporting infrastructure across Queensland, including repurposing of the Nambour General Hospital, redevelopment of the Atherton Hospital Emergency Department and operating theatres, and redevelopment of the Thursday Island Hospital. The program will also support the development of a new health precinct for the southern corridor of Cairns and short-term carpark solutions at Caboolture and Logan Hospitals.

In 2018-19, $164.2 million will be invested in the prioritised ICT categories to ensure continued efficiency of the Queensland Health system. This will include investment in core infrastructure to support digital hospitals, and replacement and enhancement of core clinical systems to support frontline health service provision and decision making at the point of care. Investment will also continue in core business systems to support corporate and business services systems to enhance Queensland Health’s ability to accurately, cost effectively and seamlessly store and share data across the continuum of care.

$162.9 million will be allocated by Hospital and Health Services for capital projects across Queensland in 2018-19. Projects include:

• $1.7 million for the Toowoomba Hospital MRI facility.

• $1.9 million to relocate the 16-bed Monash Lodge Aged Care facility to the Clermont Multi-Purpose Health Service site, and kitchen improvements.

• $1.7 million for water treatment management at the Mackay Base Hospital, Proserpine Hospital, Bowen Hospital, Collinsville Multi-Purpose Health Service, Clermont Multi-Purpose Health Service, Moranbah Hospital and Dysart Hospital.

• $19 million for ICT projects across the Metro North Hospital and Health Service.

• $3.7 million to expand the nuclear medicine hot-laboratory at the Royal Brisbane and Women’s Hospital.

• $5 million to continue to construct a new 184-bed Specialist and Ambulatory Care Centre at the Royal Brisbane and Women’s Hospital.

• $16.6 million to extend existing ICT services, and develop new ICT services at the Sunshine Coast University Hospital.

104

Capital Statement 2018-19

Queensland Ambulance Service

In 2018-19, the QAS will invest $32.5 million in capital purchases to support essential frontline services to provide the highest possible quality pre-hospital emergency and non-emergency care and services to the community. In implementing its capital program, the QAS will review opportunities for co-location with health services, thus improving the close linkages and working relationships between public hospitals, as well as other emergency management infrastructure. Highlights of the capital program include:

• $15.1 million for vehicles and stretchers, including to commission 85 new and replacement ambulance vehicles and to continue the rollout of power assisted stretchers.

• $2.5 million for ambulance facilities, including to plan and progress new stations at Hervey Bay, Drayton and Yarrabilba and replace stations at Kirwan and Mareeba.

• $200,000 to plan an upgrade for the Gold Coast Operations Centre.

• $2.2 million to refurbish the Rockhampton Station and Operations Centre and redevelop the Cairns Station and Operations Centre.

• $5.5 million for minor works at various existing stations to improve functionality and amenities and prolong useful life.

• $1.5 million to acquire strategically located land to accommodate future expansion of services in identified growth areas.

• $866,000 for ICT including software development projects and capital grants programs to enhance patient care and service delivery.

Council of the Queensland Institute of Medical Research

The QIMR capital program in 2018-19 will invest $8.5 million to acquire new and/or replace state-of-the-art scientific equipment.

105

Capital Statement 2018-19

Queensland Health
Project	Statistical Area		Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
QUEENSLAND HEALTH AND HOSPITAL AND HEALTH SERVICES
Property, Plant and Equipment1
Hospital and Health Services
Advancing Queensland’s Health Infrastructure Program		Various		230,000		18,753		26,607		184,640
Aurukun Primary Health Care Centre Redevelopment		315		6,653		5,111		806		736
Building Better Hospitals2		Various		674,000		3,000		28,700		642,300
Cairns Hospital Cardiac3 Catheterisation Laboratory		306		2,800				1,400		1,400
Cairns Hybrid Theatre		306		3,681		681		3,000
Cape York Staff Accommodation-Kowanyama Enhancing Regional Hospitals		315		3,404		977		2,427
Caloundra Health Service Refurbishment		316		17,000		11,117		5,883
Gladstone Hospital Emergency Department		308		42,000		4,762		26,826		10,412
Hervey Bay Hospital Emergency Department		319		42,460		30,556		11,904
Roma Hospital Redevelopment		307		90,400		9,525		40,144		40,731
Lady Cilento Children’s Hospital Resilience Project		305		8,647		4,961		2,777		909
Master Planning Studies		Various						6,930		Ongoing
Mornington Island Staff Accommodation		315		2,000		200		1,800
Princess Alexandra Hospital Cladding Project		303		45,545		7,366		13,179		25,000
Princess Alexandra Hospital Rehabilitation Unit		303		3,000				3,000
Priority Capital Program		Various						80,000		Ongoing
Redcliffe Hospital Carpark		313		36,780				7,508		29,272
Redland Hospital Upgrade		301		1,730				375		1,355
Rockhampton Hospital Carpark		308		25,500		5,691		15,664		4,145
Rockhampton Drug Rehabilitation and Treatment Facility		308		9,500				1,000		8,500
Rural and Regional Infrastructure Package
Blackall Hospital Redevelopment		315		17,900		361		1,230		16,309

106

Capital Statement 2018-19

Queensland Health
Project	Statistical Area	Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
Cairns Hospital Mental Health Unit	306		70,000		595		1,174		68,231
Kingaroy Hospital Redevelopment	319		62,000		8,000		20,000		34,000
Maryborough Hospital Emergency Department	319		5,000		767		2,350		1,883
Maryborough Hospital Specialist Outpatients Refurbishment	319		5,000		352		4,648
Mer (Murray) Island Building Replacement	315		7,000		403		425		6,172
Sarina Hospital Redevelopment	312		16,500		111		5,463		10,926
Townsville Hospital Clinical Services Redevelopment	318		10,400		418		9,982
Staff accommodation program	Various		13,000		2,204		8,069		2,727
Significant Regional Infrastructure Projects Program
Boulia Community Hospital Refurbishment	315		2,000		306		1,694
Townsville Hospital Paediatrics Unit	318		6,600		6,500		100
Palm Island Primary Health Care Centre	318		16,500		7,518		7,741		1,241
Adult Step Up Step Down Facility - Bundaberg	319		4,822		3,412		1,261		149
Adult Step Up Step Down Facility - Gladstone	308		4,727		3,019		1,708
Adult Step Up Step Down Facility - Mackay	312		4,929		809		4,120
South East Queensland - Adolescent Mental Health Facilities	Various		68,237		6,567		28,063		33,607
South East Queensland - Planning for Growth
Caboolture Hospital Emergency Department Expansion	313		19,600		10,809		8,791
Logan, Caboolture and Ipswich Hospital Business Cases and Preparatory Work	Various		9,000		5,868		3,132
Sunshine Coast University4 Hospital	316		1,872,151		1,763,819		34,511		73,821
Townsville Hospital Expansion	318		334,000		328,506		5,494

107

Capital Statement 2018-19

Queensland Health
Project	Statistical Area	Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
Townsville Hospital Adult Acute Mental Health Inpatient Unit	318		2,775				2,775
University of Queensland Oral Health Centre at Herston	305		4,699		375		3,040		1,284
Project Finalisation	Various		1,901				1,901
Other Acquistions of Property, Plant and Equipment
Building Works Capital Project Management	Various						850		Ongoing
Capital Program Land Acquisition	Various		2,000				2,000
Children’s Health Queensland Imaging Informatics Program	305		5,900				2,976		2,924
Finance System Replacement	Various		105,000		80,000		25,000
Gold Coast Medical Imaging Informatics Solution	309		12,800		1,308		2,976		8,516
Health Technology Equipment Replacement Program	Various						61,397		Ongoing
Laboratory Information Systems	Various		60,905		13,876		22,581		24,448
Mareeba Hospital Computed Tomography (CT) Scanner	306		5,000				4,000		1,000
Queensland Health External Cladding Taskforce Project	Various		4,545		643		3,902
Regional eHealth	Various		34,950		11,804		20,656		2,490
State-wide General Chemistry and Immunoassay Replacement and Automation Project	Various		16,511		8,941		7,570
Townsville Hospital Magnetic Resonance Imaging (MRI) machine	318		4,700				2,350		2,350
Minor Capital Projects and5 Acquisitions	Various						23,159		Ongoing
Project Finalisation - Other Acquisitions of Property, Plant and Equipment	Various		360				360
Sub-total Other Acquistions of Property, Plant and Equipment							179,777
Information Communication and Technology
Information Technology Equipment	Various						36,724		Ongoing
Information Communication and Technology	Various						127,449		Ongoing
Sub-total Information Communication and Technology							164,173

108

Capital Statement 2018-19

Queensland Health
Project	Statistical Area		Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
Cairns and Hinterland
Health Technology Equipment		306						3,698		Ongoing
Minor Capital Projects and Acquisitions		306						3,096		Ongoing
Sub-total Cairns and Hinterland								6,794
Central Queensland
Health Technology Equipment		308						2,500		Ongoing
Minor Capital Projects and Acquisitions		308						2,274		Ongoing
Sub-total Central Queensland								4,774
Central West
Health Technology Equipment		315						579		Ongoing
Minor Capital Projects and Acquisitions		315						510		Ongoing
Sub-total Central West								1,089
Childrens Health Queensland
Health Technology Equipment		305						2,198		Ongoing
Minor Capital Projects and Acquisitions		305						1,668		Ongoing
Sub-total Childrens Health Queensland								3,866
Darling Downs
Health Technology Equipment		307						3,210		Ongoing
Minor Capital Projects and Acquisitions		307						3,518		Ongoing
Toowoomba Magnetic Resonance Imaging (MRI) Facility		317		8,350		6,646		1,704
Sub-total Darling Downs								8,432
Gold Coast
Health Technology Equipment		309						4,326		Ongoing
Minor Capital Projects and Acquisitions		309						3,543		Ongoing
Sub-total Gold Coast								7,869

109

Capital Statement 2018-19

Queensland Health
Project	Statistical Area		Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
Mackay
Health Technology Equipment		312						1,284		Ongoing
Minor Capital Projects and Acquisitions		312						1,489		Ongoing
Clermont Monash Lodge		312		2,000		51		1,949
Proserpine Simulation Laboratory		312		100				100
Water Treatment		312		2,140		432		1,708
Sub-total Mackay								6,530
Metro North
Health Technology Equipment		302						16,142		Ongoing
Minor Capital Projects and Acquisitions		302						14,364		Ongoing
Acute Bed Capacity at Redcliffe Hospital		313		8,136		7,560		576
Information Communication Technology		302		67,333		48,333		19,000
Step Up Step Down Facility - Nundah		302		5,024		4,799		225
Royal Brisbane and Women’s Hospital Nuclear Medicine Hot-Laboratory Expansion		305		6,110		1,984		3,662		464
Royal Brisbane and Women’s Hospital Specialist and Ambulatory Care Centre		305		9,717		4,717		5,000
Sub-total Metro North								58,969
Metro South
Health Technology Equipment		303						9,446		Ongoing
Minor Capital Projects and Acquisitions		303						3,859		Ongoing
Sub-total Metro South								13,305
North West
Health Technology Equipment		315						524		Ongoing
Minor Capital Projects and Acquisitions		315						869		Ongoing
Sub-total North West								1,393

110

Capital Statement 2018-19

Queensland Health
Project	Statistical Area		Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
South West
Health Technology Equipment		315						880		Ongoing
Minor Capital Projects and Acquisitions		315						882		Ongoing
Sub-total South West								1,762
Sunshine Coast
Health Technology Equipment		316						3,176		Ongoing
Minor Capital Projects and Acquisitions		316						6,049		Ongoing
Sunshine Coast University Hospital Group 4 ICT Project		316		33,107		16,501		16,606
Sub-total Sunshine Coast								25,831
Torres and Cape
Health Technology Equipment		315						783		Ongoing
Minor Capital Projects and Acquisitions		315						1,434		Ongoing
Capital Projects		315		936				936
Sub-total Torres and Cape								3,153
Townsville
Health Technology Equipment		318						5,580		Ongoing
Minor Capital Projects and Acquisitions		318						4,763		Ongoing
Sub-total Townsville								10,343
West Moreton
Health Technology Equipment		310						1,717		Ongoing
Minor Capital Projects and Acquisitions		310						2,537		Ongoing
Sub-total West Moreton								4,254
Wide Bay
Health Technology Equipment		319						2,458		Ongoing
Minor Capital Projects and Acquisitions		319						2,125		Ongoing
Sub-total Wide Bay								4,583
Queensland Ambulance Service
Cairns Ambulance Station and Operations Centre Redevelopment		306		5,600		150		900		4,550

111

Capital Statement 2018-19

Queensland Health
Project	Statistical Area		Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
Drayton New Ambulance Station		317		4,600		20		1,200		3,380
Gold Coast Ambulance Operations Centre Redevelopment		309		6,200				200		6,000
Hervey Bay New Ambulance Station		319		4,600		10		300		4,290
Kirwan Replacement Ambulance Station		318		5,000		10		350		4,640
Mareeba Replacement Ambulance Station		306		1,800				400		1,400
Rockhampton Ambulance Station and Operations Centre Redevelopment		308		5,000		120		1,300		3,580
Yarrabilba New Ambulance Station		311		4,600				200		4,400
Minor Works		Various						5,500		Ongoing
Strategic Land Acquisitions		Various						1,500		Ongoing
Ambulance Vehicles		Various						15,107		Ongoing
Information Systems Development		Various						866		Ongoing
Operation Equipment		Various						4,700		Ongoing
Sub-total Queensland Ambulance Service								32,523
Total Property, Plant and Equipment								977,022
COUNCIL OF THE QUEENSLAND INSTITUTE OF MEDICAL RESEARCH
Property, Plant and Equipment
Other scientific equipment		305						8,457		Ongoing
Total Property, Plant and Equipment								8,457
TOTAL QUEENSLAND HEALTH (PPE)								985,479

Notes:

1. Total Estimated Cost may include both non-capital and capital components of project expenditure.

2. Total funding for the Building Better Hospitals package is $679 million, including a $5 million grant for the refurbishment of Cancer Council Queensland Lodges. Detailed Business Cases for the redevelopment of Logan Hospital, Caboolture Hospital and Ipswich Hospital are currently being developed by Building Queensland.

3. The $2.8 million total estimated cost represents a State contribution of $1.4 million with a further $1.4 million provided by Far North Queensland Hospital Foundation.

4. The Sunshine Coast University Hospital opened in March 17 upon the completion of Stage 1. The remaining expenditure relates to ongoing works as part of Stages 2 and 3. The $1.872 billion total estimated cost includes the Sunshine Coast Health Institute (SCHI) fit-out capital cost. Those elements of the total SCHI fit-out capital cost that relate to the proposed (non-Queensland Health) SCHI tenants will be funded directly via capital contributions from those tenants.

5. Amount is net of non capital component of project expenditure.

112

Capital Statement 2018-19

3.20 QUEENSLAND POLICE SERVICE

Queensland Police Service

Most new and ongoing capital initiatives to support the Queensland Police Service (QPS) operational capability are provided by the Public Safety Business Agency. This includes police facilities, motor vehicles, vessels and information and communication technology.

The QPS continues to be responsible for delivering operational equipment to maintain quality frontline services. In 2018-19, the QPS will invest $20.1 million in capital purchases.

Program Highlights (Property, Plant and Equipment)

• $5.5 million for Camera Detected Offence Program equipment.

• $3.9 million for mobile capability and to develop new applications for QPS QLiTE mobile tablet devices.

• $10.7 million for other plant and equipment, including to replace operational assets.

Queensland Police Service
Project	Statistical Area		Total Estimated Cost $‘000	Expenditure to 30-06-18 $‘000	Budget 2018-19 $‘000		Post 2018-19 $‘000
QUEENSLAND POLICE SERVICE
Property, Plant and Equipment
Camera Detected Offence Program		Various				5,482		Ongoing
Mobile capability		Various				3,920		Ongoing
Other plant and equipment		Various				10,722		Ongoing
Total Property, Plant and Equipment						20,124
TOTAL QUEENSLAND POLICE SERVICE (PPE)						20,124

113

Capital Statement 2018-19

3.21 QUEENSLAND TREASURY

Queensland Treasury

Queensland Treasury’s capital purchases for 2018-19 will be $6.1 million. Total capital grants for the department are $139.7 million.

Program Highlights (Property, Plant and Equipment)

• $5.7 million to implement the Office of State Revenue Transformation Program. This will enable the delivery of an upgraded informaton and communication technology platform and support improved revenue management services into the future.

• $400,000 to implement the Financial Assurance Framework reforms. This will enable delivery of an informaton and communication technology system to support the operation of the Financial Provisioning Scheme.

Program Highlights (Capital Grants)

• $139.7 million through the Queensland First Home Owners’ Grant to assist first home buyers to enter the housing market.

Cross River Rail Delivery Authority

In 2018-19, the Cross River Rail Delivery Authority has budgeted capital expenditure totalling $733 million to continue to progress the planning, procurement, and development associated with the Cross River Rail project.

Queensland Treasury
Project	Statistical Area		Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
QUEENSLAND TREASURY
Property, Plant and Equipment
Office of State Revenue Transformation Program		305		17,739		11,453		5,725		561
Financial Assurance Framework Reform		305		1,500		1,100		400
Total Property, Plant and Equipment								6,125
Capital Grants
Queensland First Home Owners’ Grant		Various						139,725		Ongoing
Total Capital Grants								139,725

114

Capital Statement 2018-19

Queensland Treasury
Project	Statistical Area		Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
CROSS RIVER RAIL DELIVERY AUTHORITY
Property, Plant and Equipment
Cross River Rail		305		5,409,000		132,869		733,000		4,543,131
Total Property, Plant and Equipment								733,000
TOTAL QUEENSLAND TREASURY (PPE)								739,125
TOTAL QUEENSLAND TREASURY (CG)								139,725

115

Capital Statement 2018-19

3.22 STATE DEVELOPMENT, MANUFACTURING, INFRASTRUCTURE AND PLANNING

In 2018-19, the State Development, Manufacturing, Infrastructure and Planning portfolio, including Economic Development Queensland, South Bank Corporation and the Queensland Reconstruction Authority, has capital purchases of $232.9 million and capital grants of $487.3 million.

Department of State Development, Manufacturing, Infrastructure and Planning

The Department of State Development, Manufacturing, Infrastructure and Planning has capital purchases of $135.5 million and capital grants of $106 million in 2018-19 to support economic development in Queensland.

Program Highlights (Property, Plant and Equipment)

• $120 million to develop the North Queensland Stadium.

Program Highlights (Capital Grants)

• $79 million through the Building our Regions program to fund critical infrastructure in regional areas.

• $25.4 million through the Royalties for the Regions program to support regional communities.

Economic Development Queensland

In 2018-19, Economic Development Queensland has capital purchases of $73.2 million.

Program Highlights (Property, Plant and Equipment)

• $16 million for the Yeerongpilly Green Transit Oriented Development.

• $16 million for the urban renewal development at Northshore Hamilton.

• $13.4 million for the Carseldine Urban Village development.

• $4.6 million for the Willowbank Industrial Development.

• $6.3 million for The Village Townsville residential development in the Oonoonba Priority Development Area.

• $5 million for the proposed Cairns Regional Industrial Estate development.

• $3.5 million for the Salisbury Plains Industrial Precinct.

116

Capital Statement 2018-19

South Bank Corporation

In 2018-19, South Bank Corporation has capital works totalling $24.1 million to maintain and enhance the South Bank Parklands, the Corporation’s commercial assets and the Brisbane Convention and Exhibition Centre.

Queensland Reconstruction Authority

In 2018-19, the Queensland Reconstruction Authority has capital grants of $381.3 million.

Program Highlights (Capital Grants)

• $339 million for Natural Disaster Relief and Recovery Arrangements (NDRRA), will be paid to Local Government Authorities for reconstruction, betterment and other projects relating to natural disaster events between 2016 and 2018. Up to 75% is funded by the Australian Government with the remainder funded by the Queensland Government.

• $13.2 million for the Natural Disaster Resilience Program 2017-18 to support the resilience of Queensland communities to natural disasters, funded jointly by the Australian Government and Queensland Government.

• $9.5 million for the Disaster Resilience Fund, a State-funded program delivering $38 million over four years to support delivery of disaster-mitigation projects and initiatives that build resilience to natural disasters.

• $12.4 million to fix damage around Mackay after Severe Tropical Cyclone Debbie. This includes $8.9 million to revitalise Bluewater Trail and Queens Park and $3.6 million ($4.6 million over two years) for beach restoration and mitigation.

• $4.5 million ($5 million over two years) to Whitsunday Regional Council to reconstruct the council administration building, including the local disaster coordination centre.

117

Capital Statement 2018-19

State Development, Manufacturing, Infrastructure and Planning
Project	Statistical Area		Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
DEPARTMENT OF STATE DEVELOPMENT, MANUFACTURING, INFRASTRUCTURE AND PLANNING
Property, Plant and Equipment
Other Plant and Equipment		Various						50		Ongoing
North Queensland Stadium		318		248,900		46,091		120,000		82,809
Gladstone State Development Area		308		65,653		63,073		2,580
Grants Management System		Various		1,702		1,120		582
State Development Area (SDA) Acquisitions		318		12,329				12,329
Total Property, Plant and Equipment								135,541
Capital Grants
Building our Regions		Various		284,906		115,591		78,959		90,356
Royalties for the Regions		Various		89,144		61,735		25,409		2,000
Roma Street Parklands		305						1,681		Ongoing
Total Capital Grants								106,049
ECONOMIC DEVELOPMENT QUEENSLAND
Property, Plant and Equipment
Willowbank Industrial Development		310		73,719		16,729		4,590		52,400
The Village Townsville		318		135,219		87,387		6,296		41,536
Northshore Hamilton		302		327,169		47,846		15,992		263,331
Yeerongpilly Green Transit Oriented Development		303		71,426		32,220		15,984		23,222
Carseldine Urban Village		302		32,477		7,203		13,387		11,887
Townsville Regional Industrial Estate		318		7,075		4,175		300		2,600
Salisbury Plains Industrial Precinct		312		6,567		1,817		3,500		1,250
Sunshine Coast Industrial Precinct - Stage 2		316		15,750				250		15,500
Cairns Regional Industrial Estate		306		10,000				5,000		5,000
Mackay Regional Industrial Estate		312		6,300				3,000		3,300
Clinton Industrial Development		308		11,262		512		500		10,250
Mica Creek Services		315		600		400		200
Gladstone State Development Area		308		14,658		6,458		1,150		7,050
Gold Coast Health and Knowledge Precinct		309		29,413		17,973		3,032		8,408
Total Property, Plant and Equipment								73,181

118

Capital Statement 2018-19

State Development, Manufacturing, Infrastructure and Planning
Project	Statistical Area		Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
SOUTH BANK CORPORATION
Property, Plant and Equipment
Parklands Enhancement and replacement		305						6,182		Ongoing
Brisbane Convention and Exhibition Centre		305						4,854		Ongoing
Investment Properties - Other Ehancements and replacements		305						1,380		Ongoing
Vulnerability		305		1,000				1,000
Riverside Open Space		305		15,680		5,380		10,300
Car Park upgrades and replacement		305		415				415
Total Property, Plant and Equipment								24,131
QUEENSLAND RECONSTRUCTION AUTHORITY
Capital Grants
Airlie Beach Foreshore Revitalisation Project		312		2,657				2,657
Mackay Bluewater Trail and Queens Park Revitalisation		312		8,864				8,864
Disaster Resilience Fund		Various		38,000				9,500		28,500
Whitsunday Regional Council admin building		312		5,000				4,500		500
Mackay Beach restoration and mitigation		312		4,562				3,562		1,000
Natural Disaster Relief & Recovery Arrangements (Local Government Authorities)		Various		1,013,177		395,903		338,955		278,319
Natural Disaster Resilience Program (joint funded with the Australian Government)		Various		13,214				13,214
Total Capital Grants								381,252
TOTAL STATE DEVELOPMENT, MANUFACTURING, INFRASTRUCTURE AND PLANNING (PPE)								232,853
TOTAL STATE DEVELOPMENT, MANUFACTURING, INFRASTRUCTURE AND PLANNING (CG)								487,301

119

Capital Statement 2018-19

3.23 TRANSPORT AND MAIN ROADS

In 2018-19, the total capital program for the Transport and Main Roads portfolio is $4.217 billion, including capital grants of $239.3 million. The portfolio includes the Department of Transport and Main Roads, Queensland Rail, Far North Queensland Ports Corporation Limited, Gladstone Ports Corporation Limited, North Queensland Bulk Ports Corporation Limited, Port of Townsville Limited, RoadTek and the Gold Coast Waterways Authority.

Department of Transport and Main Roads

In 2018-19, the capital program totals $3.425 billion towards infrastructure investment across the State. The Queensland Government is committed to delivering an integrated, safe and efficient transport system that connects regional Queenslanders and other communities throughout the State.

Program Highlights (Property, Plant and Equipment)

• $534.3 million to continue the Toowoomba Second Range Crossing project, a bypass route to the north of Toowoomba, approximately 41 kilometres in length, running from the Warrego Highway at Helidon to the Gore Highway at Athol, via Charlton, at a total cost of $1.606 billion, in partnership with the Australian Government.

• $472.3 million to continue delivery of 75 new six car sets and services over a 32-year period for the New Generation Rollingstock to meet the growing demand for rail services in South East Queensland.

• $200 million to duplicate the Bruce Highway from four to six lanes, Caloundra Road to the Sunshine Motorway, at a total estimated cost of $812.9 million, in partnership with the Australian Government.

• $115 million to construct the Mackay Ring Road (Stage 1), at a total estimated cost of $497.4 million, in partnership with the Australian Government.

• $89.2 million for the new statewide public transport ticketing system.

• $70 million to construct additional lanes on the Pacific Motorway between Mudgeeraba and Varsity Lakes, in partnership with the Australian Government.

• $68 million to provide a three kilometre upgrade of the Ipswich Motorway between Granard Road, Rocklea and Oxley Road, Oxley at a total cost of $400 million, in partnership with the Australian Government.

• $50 million to upgrade the Pacific Motorway/Gateway Motorway Merge, in partnership with the Australian Government.

120

Capital Statement 2018-19

• $45 million to widen the Gateway Motorway North to six lanes, at a total cost of $1.143 billion, in partnership with the Australian Government.

• $44.1 million to widen the seal and to apply wide centre line treatment at various locations on the Warrego Highway between Dalby and Miles, at a total cost of $63.6 million.

• $40 million to duplicate from two to four lanes on the section of the Bruce Highway (Rockhampton Northern Access) between Rockhampton-Yeppoon Road intersection and Terranova Drive, north of Rockhampton, at a total cost of $121 million, in partnership with the Australian Government.

• $37.7 million to construct bridges and approaches on the Bruce Highway (Haughton River Floodplain) south of Giru between Horseshoe Lagoon and Palm Creek, at a total cost of $514.3 million, in partnership with the Australian Government.

• $28.3 million to widen from four to six lanes on the section of the Bruce Highway (Cairns Southern Access Corridor Stage 4) from Kate Street to Aumuller Street near the Port of Cairns and wharf precinct, at a total cost of $104.1 million, in partnership with the Australian Government.

• $27 million to realign the Peak Downs Highway at Eton Range, at a total cost of $189.3 million, in partnership with the Australian Government.

• $24.2 million to undertake restoration works on the Marlborough - Sarina Road at Sarina Range in response to the impacts of Severe Tropical Cyclone Debbie, at a total cost of $49.2 million

• $17.5 million to construct Smithfield Bypass between the Captain Cook Highway at Yorkeys Knob Road Roundabout and McGregor Road Roundabout at a total cost of $152 million.

• $17.3 million to extend the three-metre wide V1 cycleway from Birdwoood Road, Holland Park to Gaza Road, Tarragindi, at a total cost of $45 million.

• $17 million to upgrade approximately nine kilometres of the Pacific Motorway between Eight Mile Plains and Daisy Hill to reduce congestion and travel times, in partnership with the Australian Government.

• $15.2 million to duplicate from two to four lanes on the Bruce Highway (Cairns Southern Access Corridor Stage 3) from Collinson Creek in Edmonton as far as the vicinity of Wrights Creek near Gordonvale, at a total cost of $481 million, in partnership with the Australian Government.

121

Capital Statement 2018-19

• $14.4 million out of the Queensland Government’s contribution of $160.8 million towards the Beerburrum to Nambour rail duplication project to address the infrastructure and capacity constraints on this section of the North Coast Line. Detailed design will commence in 2018-19, with construction to be delivered in stages based on further negotiations with the Australian Government. The Australian Government has provided an initial $390 million over five years towards this measure.

• $13 million to seal sections of the Kennedy Developmental Road between Hughenden and The Lynd (Hann Highway), at a total cost of $50 million, in partnership with the Australian Government.

• $10.9 million to duplicate from two to four lanes on a section of the Capricorn Highway between Rockhampton and Gracemere, at a total cost of $75 million, in partnership with the Australian Government.

Program Highlights (Capital Grants)

• $70 million of infrastructure development grants to local governments including Aboriginal and Torres Strait Islander community assistance.

• $20.2 million to develop the cycle network throughout Queensland.

• $18 million for the Queensland School Bus Upgrade Scheme to provide funding to eligible school bus operators to assist with the purchase of new buses or buses that are less than five years old.

• $2 million towards school transport-related infrastructure upgrades, including vehicle turnaround or parking facilities and stop, drop and go areas. The Queensland Government has committed $20 million over four years to this program.

Gold Coast Waterways Authority

In 2018-19, the Gold Coast Waterways Authority has allocated $8 million to improve management of, and provide better access to, the Gold Coast waterways, canals and rivers.

Program Highlights (Property, Plant and Equipment)

• $4.9 million to improve access and safety by dredging navigation channels and to improve accessibility and quality of waterways information.

• $2.7 million to provide infrastructure and assets such as ongoing improvements to Doug Jennings Park facilities, upgrading the Sand Bypass Jetty Deck and implementing an innovative renewable energy solution at the Gold Coast Seaway Sand Bypass System.

• $380,000 to provide boating infrastructure such as boat ramp and pontoon upgrades.

122

Capital Statement 2018-19

Queensland Rail Limited

In 2018-19, $587.5 million is allocated towards capital purchases for Queensland Rail.

Program Highlights (Property, Plant and Equipment)

$188.4 million is provided towards projects that will grow or enhance the Queensland Rail network including:

• $43.3 million to upgrade (or improve) station accessibility at various train stations including Strathpine, Boondall, Morayfield, Southbank, Dakabin, Cannon Hill, Buranda, Fairfield, Albion, East Ipswich and Loganlea stations.

• $35.4 million to implement the European Train Control System – Inner City.

• $35.3 million to continue investment to support the delivery of the New Generation Rollingstock into service.

• $21.9 million to upgrade the capacity of the North Coast Rail Line to increase productivity and efficiency of freight transport.

• $14.7 million to revitalise and modernise Brisbane’s Central Station to improve the customer experience and cater for future growth.

• $12.4 million to upgrade park and ride facilities at Salisbury, Darra, Lawnton, Lindum, Geebung, Virginia and Springfield Central train stations.

• $9.5 million to continue track and tunnel upgrades between Brisbane and Toowoomba to cater for growing demand.

• $4.1 million to upgrade 1.9 kilometres of rail track on the Yeppoon Rail Line.

$399.1 million to replace, renew and upgrade rail infrastructure, rollingstock, buildings, facilities, and other supporting assets including:

• $237.4 million to invest in the network including track infrastructure, civil structures, signalling and other network assets.

• $88.8 million to invest in rail operations including rollingstock overhauls, operational facilities, and other rail operations assets.

• $53.3 million for business enabling investment on corporate, property and ICT works across Queensland.

• $19.6 million to improve customer experience, maintain service continuity and build network resilience on the Townsville – Mount Isa Rail Line.

123

Capital Statement 2018-19

Far North Queensland Ports Corporation Limited

In 2018-19, Far North Queensland Ports Corporation Limited has allocated $7.5 million to undertake new and continue existing development of its ports in Far North Queensland.

Program Highlights (Property, Plant and Equipment)

• $2 million to continue the development of the Tingira Street Precinct in Cairns, at a total cost of $17.9 million.

Gladstone Ports Corporation Limited

In 2018-19, Gladstone Ports Corporation Limited has allocated $83.5 million to continue development of the Port of Gladstone, and additional works at the Port of Bundaberg and the Port of Rockhampton.

Program Highlights (Property, Plant and Equipment)

• $35.6 million to continue upgrades at the RG Tanna Coal Terminal at the Port of Gladstone, at a total cost of $220.3 million.

• $3.5 million to commence land reclamation and drainage works at Fisherman’s Landing, at a total cost of $32 million.

• $2.8 million to commence road infrastructure and concrete remediation works at Barney Point, at a total cost of $12.3 million.

North Queensland Bulk Ports Corporation Limited

In 2018-19, North Queensland Bulk Ports Corporation Limited has allocated $15.1 million to continue port planning and development initiatives to meet industry requirements for export facilities.

Program Highlights (Property, Plant and Equipment)

• $5.9 million to relocate Mackay Tug Berth Facilities to provide a permanent fit-for-purpose berthing facility which is fully designed for the safe berthing of the tugs currently in operation and which can suit the potential future larger tug fleet, at a total cost of $6.5 million.

Port of Townsville Limited

In 2018-19, Port of Townsville Limited has allocated $75.1 million to continue development at the Port of Townsville, and additional works at the Port of Lucinda.

Program Highlights (Property, Plant and Equipment)

• $44.3 million to continue preparatory and initial works to widen the shipping channels for access by larger vessels, at a total cost of $193.5 million. This is Stage 1 of the Townsville Port Expansion Project.

124

Capital Statement 2018-19

• $18.6 million to commence acquisition of Berth 4 cranes and development of associated cargo terminal areas to cater for future trade growth, at a total cost of $27.3 million.

Transport and Main Roads
Project	Statistical Area		Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
DEPARTMENT OF TRANSPORT AND MAIN ROADS
Property, Plant and Equipment
Central West District
Landsborough Highway1 (Longreach - Winton), Dingo Creek - Darr River, pavement strengthening and widening		315		24,980		2,100		6,350		16,530
Clermont - Alpha Road, pave and2 seal		315		8,710		2,050		5,970		690
Diamantina Developmental Road2 (Boulia - Dajarra), pavement rehabilitation and widening		315		5,030		250		4,200		580
Richmond - Winton Road, pave2 and seal		315		4,700		340		3,940		420
Landsborough Highway3 (Augathella - Kynuna), pavement strengthening and widening		315		2,280		150		2,130
Other Central West Construction		315		32,453				32,453
Sub-total Central West District								55,043
Darling Downs District
Toowoomba Second Range4 Crossing		317		1,606,250		650,068		534,290		421,892
Warrego Highway (Dalby - Miles),5 widening and apply wide centre line treatment		307		63,640		1,053		44,138		18,449
Warrego Highway (Dalby - Miles),5 Overtaking Lanes		307		35,000		7,812		20,188		7,000
Warrego Highway, Oakey - Miles,5 Safety Upgrade		307		40,000		15,514		19,786		4,700
Warrego Highway, Chinchilla Rail5 Crossing Upgrade		307		16,000		1,521		14,479

125

Capital Statement 2018-19

Transport and Main Roads
Project	Statistical Area	Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
Warrego Highway, Dalby Eastern5 Access Upgrade	307		56,000		35,227		12,890		7,883
Warrego Highway, Condamine5 Street - Watt Street, Dalby Western Access Upgrade (Stage 1)	307		59,000		38,410		8,429		12,161
Warrego Highway, Drillham -5 Jackson Widening Upgrade	307		11,000		3,149		7,251		600
New England Highway Cycleway, Bridge street, Toowoomba CBD - Ruthven street, Highfields, construct cycleway	317		7,500		500		7,000
Warrego Highway, Miles Western5 Access Upgrade	307		10,743		3,060		5,307		2,376
Other Darling Downs Construction	307		17,978				17,978
Sub-total Darling Downs District							691,736
Far North District
Bruce Highway (Innisfail - Cairns), Cairns Southern Access Corridor Stage 4, Kate Street to Aumuller Street, widen four to six lanes	306		104,070		6,378		28,286		69,406
Smithfield Bypass, construct6 bypass to a sealed standard	306		152,000		5,352		17,500		129,148
Bruce Highway (Innisfail - Cairns), Cairns Southern Access Corridor Stage 3, Edmonton to Gordonvale, duplicate two to four lanes	306		481,000		6,082		15,150		459,768
Peninsula Developmental Road7 (Coen - Weipa), Stage 2, Telecom Tower to Archer River, pave and seal	315		11,400		1,593		9,807
Peninsula Developmental Road7 (Coen - Weipa), Stage 2, Piccaninny Black Soil, pave and seal	315		8,906		2,048		6,858
Peninsula Developmental Road7 (Laura - Coen), Stage 2, South of Duck Holes Creek, pave and seal	315		10,540		4,219		6,321

126

Capital Statement 2018-19

Transport and Main Roads
Project	Statistical Area	Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
Peninsula Developmental Road7 (Laura - Coen), Stage 2, 10 Mile Creek, pave and seal	315		6,730		4,112		2,618
Cape York Region Package, other7 works	315		172,651		168,060		4,436		155
Burke Developmental Road2 (Normanton - Dimbulah), pavement widening	315		7,460		2,176		5,284
Captain Cook Highway (Cairns - Mossman), widen pavement	306		22,807		527		4,008		18,272
Bruce Highway (Innisfail - Cairns), Innisfail, upgrade Ash and Pine Street Intersections	306		6,108		98		3,556		2,454
Bruce Highway (Innisfail - Cairns), northbound overtaking lane	306		4,865		920		2,000		1,945
Other Far North Construction	306		55,763				55,763
Sub-total Far North District							161,587
Fitzroy District
Bruce Highway (Rockhampton - St Lawrence), Rockhampton Northern Access Upgrade, Stage 1	308		121,000		17,300		40,000		63,700
Capricorn Highway duplication1 (Rockhampton - Gracemere)	308		74,990		500		10,900		63,590
Capricorn Highway (Rockhampton - Emerald), Gracemere - Emerald, overtaking lanes	308		19,000				10,000		9,000
Bruce Highway (Benaraby - Rockhampton), Benaraby to Calliope River, Safety Works	308		36,610		1,750		9,585		25,275
Rockhampton Road Train Access2,8 (Stage 1)	308		30,000		10,000		9,000		11,000
Bajool - Port Alma Road,1 pavement widening and safety upgrades	308		14,500		2,000		8,750		3,750
Bruce Highway (Gin Gin - Benaraby), Bororen to Rodds Bay Road, Safety Works	308		14,290		1,018		8,529		4,743
Capricorn Highway, Valentine9 Creek Bridge Replacement	308		8,299		438		7,661		200

127

Capital Statement 2018-19

Transport and Main Roads
Project	Statistical Area	Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
Gladstone - Benaraby Road, various safety treatments	308		20,400		1,500		7,500		11,400
Bruce Highway (Gin Gin - Benaraby), north of Granite Creek southbound, construct overtaking lane	308		6,703		489		5,403		811
Bruce Highway (Gin Gin - Benaraby), Daisy Dell southbound, construct overtaking lane	308		4,358		740		3,308		310
Other Fitzroy Construction	308		58,487				58,487
Sub-total Fitzroy District							179,123
Mackay Whitsunday District
Mackay Ring Road, construct new two lane road	312		497,375		104,105		115,000		278,270
Peak Downs Highway, Eton Range Realignment	312		189,264		78,382		27,000		83,882
Marlborough - Sarina Road, Sarina Range, Natural Disaster Relief and Recovery Arrangements Restoration, remediate batter slopes	312		49,157		9,660		24,241		15,256
Peak Downs Highway (Clermont -1 Nebo), Wuthung Road to Caval Ridge, pavement widening and strengthening	312		35,000		258		4,000		30,742
Bowen Developmental Road1 (Collinsville - Belyando Crossing), Rockingham Creek to Mount Coolon, pave and seal;	312		28,750		239		4,000		24,511
Mackay - Slade Point Road, Vines Creek Bridges Replacement	312		28,046		15,851		3,800		8,395
Bruce Highway (St Lawrence - Mackay), Sarina Northern Access, construct roundabout	312		14,363		1,990		2,000		10,373
Other Mackay Whitsunday Construction	312		50,658				50,658
Sub-total Mackay Whitsunday District							230,699

128

Capital Statement 2018-19

Transport and Main Roads
Project	Statistical Area		Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
Metropolitan District
Ipswich Motorway, Rocklea to8 Darra (Stage 1), upgrade		310		400,000		72,071		68,000		259,929
Gateway Motorway North, upgrade to six lanes		302		1,142,727		776,464		45,000		321,263
New Generation Rollingstock4		310		4,155,705		667,706		472,323		3,015,676
Veloway 1 (V1), Stage E, Birdwood Road to Gaza Road, construct cycleway		303		45,000		604		17,307		27,089
Centenary Motorway, Sumners6 Road Interchange Upgrade		304		65,000		2,550		14,934		47,516
North Brisbane Bikeway, Stages 2, 3 and 4, Somerset Street to Rigby Street and Rigby Street to Price Street, design and construct cycle facilities		305		17,180		4,145		5,740		7,295
Eight Mile Plains Bus Station Park ‘n’ Ride Upgrade		303		4,500	��	350		2,350		1,800
Other Metropolitan Construction		Various		66,410				66,410
Sub-total Metropolitan District								692,064
Northern District
Bruce Highway (Ayr - Townsville), Haughton River Floodplain, construct bridges and approaches		318		514,335		17,749		37,670		458,916
Garbutt - Upper Ross Road,8 Riverway Drive, duplication		318		43,756		23,184		14,881		5,691
Gregory Developmental Road,3 Charters Towers to The Lynd, widening		318		42,280		13,505		14,785		13,990
Flinders Highway (Townsville -1 Charters Towers), pavement strengthening and rehabilitation (Package 1)		318		17,000		1,839		8,030		7,131
Townsville Connection Road,9 Bowen Road Bridge, construct		318		6,663				6,663
Bruce Highway (Townsville - Ingham), Hechts Road to Yuruga Road, pavement widening		318		9,170		361		6,439		2,370

129

Capital Statement 2018-19

Transport and Main Roads
Project	Statistical Area	Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
Bruce Highway (Townsville - Ingham), Cattle Creek and Frances Creek, upgrade bridges	318		118,900		67,207		6,433		45,260
Bruce Highway (Townsville - Ingham), Deep Creek - Bluewater Creek, pavement widening	318		7,500		1,279		4,359		1,862
Gregory Developmental Road,2 Sardine Creek to Boomerang Creek, widen and seal	318		5,790		880		3,808		1,102
Other Northern Construction	318		33,314				33,314
Sub-total Northern District							136,382
North Coast District
Bruce Highway, Caloundra Road to Sunshine Motorway	316		812,948		280,652		200,000		332,296
Bruce Highway safety barrier installation	Various		79,790		13,450		42,503		23,837
North Coast Line - Beerburrum to10 Nambour Rail Upgrade	316		550,791				14,407		536,384
Burpengary - Caboolture Road and Beerburrum Road, improve intersections	313		28,800		700		8,000		20,100
Kawana Way (Sunshine Motorway8 - Nicklin Way), Sunshine Coast University Hospital, roundabout upgrades	316		22,000		15,997		4,803		1,200
Caboolture Connection Road, upgrade signals and intersection improvements	313		7,555		1,053		3,669		2,833
Mount Glorious Road and Samford - Mount Glorious Road, improve intersections	314		11,300		200		2,500		8,600
Brisbane - Woodford Road, Dixon Street, improve intersection	314		3,000		726		2,274
Other North Coast Construction	316		120,887				120,887
Sub-total North Coast District							399,043

130

Capital Statement 2018-19

Transport and Main Roads
Project	Statistical Area		Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
North West District
Kennedy Developmental Road1 (Hann Highway), The Lynd - Hughenden, sealing		315		50,000		18,000		13,000		19,000
Wills Developmental Road (Julia9 Creek - Burketown), Beames Brook Bridge, new two lane concrete bridge		315		5,977		1,190		4,787
Barkly Highway (Cloncurry - Mount1 Isa), intersection upgrades		315		6,200		430		4,000		1,770
Flinders Highway (Charters1 Towers - Hughenden), culvert upgrades		315		14,408		6,335		3,252		4,821
Cloncurry - Dajarra Road, sealing2		315		3,220		50		2,880		290
Other North West Construction		315		22,422				22,422
Sub-total North West District								50,341
South Coast District
Pacific Motorway (Mudgeeraba -8,11 Varsity Lakes) extra lanes		309		197,500		31,456		70,000		96,044
Pacific Motorway (Rochedale8,12 South), Miles Platting Road to Rochedale Road (Gateway Merge)		311		190,000		23,147		50,000		116,853
Pacific Motorway, Eight Mile Plains13 to Daisy Hill		311		749,000				17,000		732,000
Pacific Motorway, Varsity Lakes6,13 to Tugun		309		1,030,000				5,000		1,025,000
Mount Lindesay Highway (Brisbane - Beaudesert), Greenbank Road, North Maclean, improve intersection		311		20,000		4,000		16,000
Gold Coast - Springbrook Road, Natural Disaster Relief and Recovery Arrangements, remediate batter slopes		309		21,149		7,265		13,884
Waterford - Tamborine Road14 (Logan Village), upgrade between Anzac Avenue to Hotz Road		311		39,500		26,165		13,335

131

Capital Statement 2018-19

Transport and Main Roads
Project	Statistical Area	Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
Lamington National Park Road, Natural Disaster Relief and Recovery Arrangements Restoration, rehabilitate pavement	309		15,490		7,136		8,354
Nerang - Murwillumbah Road, Natural Disaster Relief and Recovery Arrangements Restoration, remediate batter slopes	309		10,267		2,000		5,898		2,369
Greenbank Bus Park ‘n’ Ride Upgrade	311		21,000		50		4,250		16,700
Beechmont Road, Natural Disaster Relief and Recovery Arrangments Restoration, remediate batter slopes	309		5,745		1,804		3,941
Beaudesert - Beenleigh Road, installation of safety treatments	311		5,880		2,170		3,710
Other South Coast Construction	309		56,344				56,344
Sub-total South Coast District							267,716
South West District
Carnarvon Highway, St George -15 Surat, pavement widening	307		16,500		7,848		8,652
Other South West Construction	315		26,617				26,617
Sub-total South West District							35,269
State Wide District
Transport Corridor Acquisition Fund	Various						40,000		Ongoing
Maritime Safety Minor Works	Various						6,823		Ongoing
Western Roads Upgrade Supplement	Various		5,000				5,000
Additional Electric Charging6 Stations Program	Various		2,500				200		2,300
Other Statewide Construction	Various		6,582				6,582
Sub-total State Wide District							58,605

132

Capital Statement 2018-19

Transport and Main Roads
Project	Statistical Area		Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
Wide Bay Burnett District
Bruce Highway Intersection Upgrades (Fleming Road to Fishermans Pocket Road, Chatsworth)		319		12,000		750		9,000		2,250
Pialba-Burrum Heads Road and Scrub Hill Road and Wide Bay Drive, intersection signalisation		319		26,000		10,300		8,700		7,000
Bruce Highway (Gympie - Maryborough), construct overtaking lanes		319		13,320		615		5,685		7,020
Bruce Highway (Gin Gin - Benaraby), Gin Gin, widening and intersection upgrades		319		8,230		150		4,200		3,880
Bruce Highway (Maryborough - Gin Gin), Hebbards Road - North South Road, Apple Tree Creek, widening and rehabilitation		319		15,454		9,365		3,500		2,589
Bruce Highway (Maryborough - Gin Gin), construct overtaking lanes		319		4,037		200		3,407		430
Burnett Highway (Gayndah -9 Monto), Eidsvold, Three Moon Creek, timber bridge replacement		319		15,575		209		3,125		12,241
Bruce Highway, (Gin Gin - Benaraby), Carman Road - Langbeckers Nurseries, widen and overlay		319		8,563		2,820		2,828		2,915
Miva Road, Dickabram Rail Bridge Rehabilitation		319		8,000		3,720		1,780		2,500
Other Wide Bay Burnett Construction		319		58,215				58,215
Sub-total Wide Bay Burnett District								100,440

133

Capital Statement 2018-19

Transport and Main Roads
Project	Statistical Area		Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
Other Property, Plant and Equipment
Corporate Buildings		Various						4,000		Ongoing
Information Technology		Various						23,223		Ongoing
Plant and Equipment		Various						11,354		Ongoing
New Public Transport Ticketing System		Various		371,060				89,198		281,862
Sub-total Other Property, Plant and Equipment								127,775
Total Property, Plant and Equipment								3,185,823
Capital Grants
Transport Infrastructure Development Scheme		Various						70,000		Ongoing
Bridges Renewal Program9		Various		71,247		38,277		22,440		10,530
Cycle Program		Various						20,233		Ongoing
Cape York Region Package7		315		50,344		31,298		19,046
Queensland School Bus Upgrade		Various						17,988		Ongoing
Strategic Off-Network - Road Projects		Various		63,201		34,527		13,020		15,654
Black Spot Program		Various						12,178		Ongoing
Passenger Transport Facilities Program		Various		92,443		34,693		7,857		49,893
Pasha Road (Moranbah), pave and seal sections		312		16,000				6,000		10,000
School Transport Infrastructure Program		Various		20,000				2,000		18,000
Regional Roads Infrastructure Package		Various		8,302		2,148		1,145		5,009
Transport and Tourism Connections		315		10,000		5,689		200		4,111
Other Capital Grants		Various		47,231				47,231
Total Capital Grants								239,338
GOLD COAST WATERWAYS AUTHORITY
Property, Plant and Equipment
Navigation Access and Safety		309		12,255		2,010		4,880		5,365
Boating Infrastructure Program		309		2,922		292		380		2,250
Plant, Equipment and Minor Works		309		10,180		2,615		2,730		4,835
Total Property, Plant and Equipment								7,990

134

Capital Statement 2018-19

Transport and Main Roads
Project	Statistical Area	Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
ROADTEK
Property, Plant and Equipment
Hire Plant	Various						15,000		Ongoing
Total Property, Plant and Equipment							15,000
QUEENSLAND RAIL LIMITED
Property, Plant and Equipment
Growth
European Train Control System Level 2 - Inner City Works	305		634,380		26,462		35,429		572,489
New Generation Rollingstock - Power Distribution	Various		49,076		15,548		26,648		6,880
New Generation Rollingstock - Station Compatibility	Various		16,427		13,047		3,380
New Generation Rollingstock - Business Systems	305		41,820		39,210		2,610
Other New Generation Rollingstock - Operational Readiness Projects	Various		2,674				2,674
North Coast Line Capacity Improvement Project (Passing Loops)	Various		82,734		5,514		21,886		55,334
Toowoomba Range Capacity and Clearance Upgrades	317		47,460		37,914		9,546
Yeppoon Rail Line Upgrade	308		4,100				4,100
Other Rail Projects16	Various						11,798		Ongoing
Central Train Station Renewal	305		51,822		4,434		7,491		39,897
Other Central Train Station Upgrades	305		14,032				7,168		6,864
Strathpine and Boondall Train Station Upgrades	Various		48,065		5,170		17,622		25,273
Morayfield Train Station Upgrade	313		22,311		2,074		8,976		11,261
Southbank Train Station Upgrade	305		10,042		1,882		8,160
Dakabin Train Station Upgrade	314		39,000		120		2,953		35,927
Cannon Hill Train Station Upgrade	303		18,000		30		1,540		16,430
Buranda Train Station Upgrade	303		25,000		70		1,230		23,700
Fairfield Train Station Upgrade	303		16,000				400		15,600

135

Capital Statement 2018-19

Transport and Main Roads
Project	Statistical Area		Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
Albion Train Station Upgrade		305		16,000		45		395		15,560
East Ipswich Train Station Upgrade		310		17,500				50		17,450
Loganlea Train Station Upgrade		311		19,000				30		18,970
Other Train Station Upgrades		Various						1,919		Ongoing
Salisbury Train Station Park ‘n’17 Ride		303		14,500		50		4,050		10,400
Darra Train Station Park ‘n’ Ride17		310		8,770		50		3,000		5,720
Lawnton Train Station Park ‘n’17 Ride		314		10,400		3,200		1,912		5,288
Lindum Train Station Park ‘n’ Ride17		301		5,000		100		1,338		3,562
Geebung Train Station Park ‘n’17 Ride		302		3,100		100		862		2,138
Virginia Train Station Park ‘n’ Ride17		302		2,300		100		663		1,537
Springfield Central Train Station17 Park ‘n’ Ride		310		44,500				550		43,950
Sub-total Growth								188,380
Network
Below Rail Operational18 Performance		Various						212,913		Ongoing
Below Rail Cost Optimisation18		Various						24,465		Ongoing
Townsville - Mount Isa Rail Line		Various						19,599		Ongoing
Sub-total Network								256,977
Rail Operations
Above Rail Operational19 Performance		Various						84,094		Ongoing
Above Rail Cost Optimisation19		Various						4,746		Ongoing
Sub-total Rail Operations								88,840
Business Enabling
Safety Program		Various						10,270		Ongoing
ICT Program		Various						6,653		Ongoing
Workforce Productivity Program		Various						3,920		Ongoing
Other Enabling Program		Various						32,432		Ongoing
Sub-total Business Enabling								53,275
Total Property, Plant and Equipment								587,472

136

Capital Statement 2018-19

Transport and Main Roads
Project	Statistical Area		Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
FAR NORTH QUEENSLAND PORTS CORPORATION LIMITED
Property, Plant and Equipment
Marlin Marina Reconfiguration and Expansion		306		4,443		1,843		1,500		1,100
Tingira Street Subdivision Development		306		17,913		3,263		2,000		12,650
Horn Island Cargo Wharf Access Road		315		1,700				1,700
Plant, Equipment and Minor Works		306						2,346		Ongoing
Total Property, Plant and Equipment								7,546
GLADSTONE PORTS CORPORATION LIMITED
Property, Plant and Equipment
RG Tanna Coal Terminal Projects
Process Control Systems, Stockpile Management and Upgrades		308		126,363		11,889		26,764		87,710
Conveyor Life Extension		308		86,945		6,666		6,234		74,045
Capacity Maximisation		308		7,000		3,880		2,595		525
Auckland Point Projects		308		38,400		100		2,400		35,900
Barney Point Projects		308		12,250				2,760		9,490
Port of Bundaberg Projects		319		3,180				1,900		1,280
Fisherman’s Landing Projects		308		32,035				3,485		28,550
Marine Pilot Services Projects		308		7,330		2,006		1,294		4,030
Information Systems Projects		308		38,455				13,050		25,405
Port Services Projects		308		81,928		19,400		15,078		47,450
Port Alma Projects		308		2,500				500		2,000
Quarry Projects		308		4,260				1,260		3,000
Marina Projects		308		1,020				500		520
Plant, Equipment and Minor Works		308		18,964		208		5,665		13,091
Total Property, Plant and Equipment								83,485
NORTH QUEENSLAND BULK PORTS CORPORATION LIMITED
Property, Plant and Equipment
Mackay Tug Berth Facilities Stage 1		312		6,511		615		5,896
Mackay Northern Access Road		312		2,712		212		1,500		1,000

137

Capital Statement 2018-19

Transport and Main Roads
Project	Statistical Area	Total Estimated Cost $‘000		Expenditure to 30-06-18 $‘000		Budget 2018-19 $‘000		Post 2018-19 $‘000
Middle Breakwater Common User Pipe Supports Replacement	312		6,210		210		1,500		4,500
Louisa Creek Acquisition Program	312		6,020		760		1,052		4,208
Mackay Wharf 1 Deck Concrete Sealing	312		932		182		750
Mackay Water Network Enhancements	312		4,130		505		655		2,970
Wharf 5 Approaches	312		7,750				250		7,500
Hay Point Port Development General	312		4,534		904		1,890		1,740
Mackay Port Development General	312		32,722		3,835		1,399		27,488
Abbot Point Port Development General	312		8,223		863		80		7,280
Business Improvement (Information Technology)	312		1,730		380		150		1,200
Total Property, Plant and Equipment							15,122
PORT OF TOWNSVILLE LIMITED
Property, Plant and Equipment
Berth 4 Cranes and Cargo Terminal Area	318		27,296		415		18,564		8,317
Channel Capacity Upgrade	318		193,460		6,096		44,326		143,038
Road Network Upgrades	318		10,100		250		3,250		6,600
Wharf Facilities Upgrades	318		11,486		36		1,000		10,450
Plant, Equipment and Minor Works	318						7,953		Ongoing
Total Property, Plant and Equipment							75,093
TOTAL TRANSPORT AND MAIN ROADS (PPE)							3,977,531
TOTAL TRANSPORT AND MAIN ROADS (CG)							239,338

Notes:

1. Part of the Northern Australia Roads Program.

2. Part of the Northern Australia Beef Roads Program.

3. Funding for this project is for pre-construction activities only.

4. This project is being delivered under a Public Private Partnership arrangement (PPP).

5. Part of the $635 million Warrego Highway Upgrade Package to upgrade the Warrego Highway between Toowoomba and Miles.

6. Part of the State Infrastructure Fund.

7. Part of the $260.5 million Cape York Region Package.

8. Part of the State Infrastructure Fund - Priority Economic Works and Productivity Program.

138

Capital Statement 2018-19

9. Part of the Bridges Renewal Program.

10. Indicative total project cost subject to confirmation. Project timing, potential staging and funding arrangements subject to negotiations with the Australia Government.

11. Indicative total project cost to be confirmed. Australian Government contribution capped at $110 million, with the Queensland Government to fund the balance. Queensland Government contribution includes $44 million from the State Infrastructure Fund.

12. Indicative total project cost to be confirmed. Australian Government contribution capped at $115 million, with the Queensland Government to fund the balance. Queensland Government contribution includes $42 million from the State Infrastructure Fund - Priority Economic Works and Productivity Program.

13. Indicative total project cost subject to business case development. Project timing and funding arrangements subject to negotiations with the Australia Government.

14. This is a developer funded project.

15. Part of the Australian Government’s Heavy Vehicle Safety and Productivity Program.

16. Projects other than European Train Control System, New Generation Rollingstock - Operational Readiness, Central and other train station upgrades that will grow and enhance the Queensland Rail Network. They are mainly related to infrastructure and civil works.

17. The project is jointly delivered by Queensland Rail and Department of Transport and Main Roads.

18. Below Rail includes track infrastructure.

19. Above Rail includes stations, platforms and rollingstock.

All Projects - Total estimated cost is inclusive of both non-capital and capital components of project expenditure.

139

Capital Statement 2018-19

Appendices

Appendix A: Entities included in capital outlays 2018-19

Aboriginal and Torres Strait Islander Partnerships

Department of Aboriginal and Torres Strait Islander Partnerships

Agriculture and Fisheries

Department of Agriculture and Fisheries

Queensland Racing Integrity Commission

Child Safety, Youth and Women

Department of Child Safety, Youth and Women

Communities, Disability Services and Seniors

Department of Communities, Disability Services and Seniors

Education

Department of Education

Queensland Curriculum and Assessment Authority

Electoral Commission of Queensland

Employment, Small Business and Training

Department of Employment, Small Business and Training

TAFE Queensland

Environment and Science

Department of Environment and Science

Library Board of Queensland

Queensland Museum

Queensland Art Gallery

Queensland Performing Arts Trust

Housing and Public Works

Department of Housing and Public Works

CITEC

Queensland Shared Services

Queensland Building and Construction Commission

Stadiums Queensland

140

Capital Statement 2018-19

Innovation, Tourism Industry Development and the Commonwealth Games

Department of Innovation, Tourism Industry Development and the Commonwealth Games

Justice and Attorney General

Department of Justice and Attorney General

Public Trustee of Queensland

Legal Aid Queensland

Crime and Corruption Commission

Legislative Assembly of Queensland

Local Government, Racing and Multicultural Affairs

Department of Local Government, Racing and Multicultural Affairs

Natural Resources, Mines and Energy

Department of Natural Resources, Mines and Energy

CS Energy Limited

Stanwell Corporation Limited

Energy Queensland

Powerlink Queensland

SunWater Limited

Gladstone Area Water Board

Mount Isa Water Board

Seqwater

Premier and Cabinet

Department of the Premier and Cabinet

Public Safety Business Agency

Queensland Corrective Services

Queensland Fire and Emergency Services

Queensland Health

Queensland Health and Hospital and Health Services

Council of the Queensland Institute of Medical Research

Queensland Police Service

Queensland Treasury

Queensland Treasury

Cross River Rail Delivery Authority

141

Capital Statement 2018-19

State Development, Manufacturing, Infrastructure and Planning

Department of State Development, Manufacturing, Infrastructure and Planning

Economic Development Queensland

South Bank Corporation

Queensland Reconstruction Authority

Transport and Main Roads

Department of Transport and Main Roads

Gold Coast Waterways Authority

Queensland Rail Limited

Far North Queensland Ports Corporation

Gladstone Ports Corporation

North Queensland Bulk Ports Corporation

Port of Townsville Limited

RoadTek

142

Capital Statement 2018-19

Appendix B: Key concepts and coverage

Coverage of the capital statement

Under accrual output budgeting, capital is the stock of assets including property, plant and equipment and intangible assets that any agency owns and/or controls and uses in the delivery of services, as well as capital grants made to other entities. The following definitions are applicable throughout this document:

• capital purchases – property, plant and equipment outlays as per the financial statements excluding asset sales, depreciation and revaluations

• capital grants – capital grants to other entities and individuals (excluding grants to other government departments and statutory bodies).

Capital contingency

Consistent with the approach adopted in previous years, a capital contingency reserve has been included. This reserve recognises that while agencies budget to fully use their capital works allocation, circumstances such as project lead-in times, project management constraints, unexpected weather conditions and capacity constraints such as the supply of labour and materials may prevent full usage. On a whole-of-government basis, there is likely to be underspending, resulting in a carry-over of capital allocations.

Estimated jobs supported by capital works

The $11.583 billion capital works program in 2018-19 is estimated to directly support more than 38,000 jobs, equating to around 33,000 full-time equivalent jobs. The estimate of jobs supported by the Government’s capital works program in 2018-19 is based on Queensland Treasury’s Guidelines for estimating the full-time equivalent (FTE) jobs directly supported by the construction component of the capital works program.

The estimate of jobs supported by the capital works program is presented both in terms of FTEs and total jobs. Further, in some cases, jobs estimates quoted for specific projects throughout the Capital Statement and in other Budget papers may reflect other approaches, including proponent’s estimates or project specific information, rather than the methodology in the Queensland Treasury Guidelines for estimating jobs supported by capital works.

143

Capital Statement 2018-19

Appendix C: Capital purchases by entity by region 2018-19

	Brisbane
	East		North		South		West		Inner City		Sub total
Entity2	$‘000		$‘000		$‘000		$‘000		$‘000		$‘000
Aboriginal and Torres Strait Islander Partnerships		—		—		—		—		284		284
Agriculture and Fisheries		1,146		30		1,000		—		8,585		10,761
Child Safety, Youth and Women		2,214		1,809		2,977		1,589		2,185		10,774
Communities, Disability Services and Seniors		143		1,989		218		116		1,010		3,476
Education		17,748		13,505		42,825		26,142		111,646		211,866
Electoral Commission of Queensland		—		—		—		—		3,381		3,381
Employment, Small Business and Training		1,285		1,173		1,936		1,018		1,741		7,153
Environment and Science		4,514		1,884		3,110		1,636		27,170		38,314
Housing and Public Works		15,551		21,126		45,170		11,466		55,235		148,548
Innovation, Tourism Industry Development and the Commonwealth Games		—		—		—		—		24		24
Justice and Attorney-General		915		884		1,377		724		40,994		44,894
Legislative Assembly of Queensland		131		121		200		105		6,568		7,125
Local Government, Racing and Multicultural Affairs		62		56		93		49		71		331
Natural Resources, Mines and Energy		38,882		100,753		101,238		68,935		321,629		631,437
Premier and Cabinet		—		—		—		—		1,047		1,047
Public Safety Business Agency3		8,737		8,567		11,664		7,584		21,766		58,318
Queensland Corrective Services		1,967		1,799		2,969		1,561		2,286		10,582
Queensland Fire and Emergency Services		271		248		410		216		316		1,461
Queensland Health		25,069		72,284		66,707		19,578		58,439		242,077
Queensland Police Service		953		869		1,435		755		1,105		5,117
Queensland Treasury		—		—		—		—		739,125		739,125
State Development, Manufacturing, Infrastructure and Planning		30		29,406		16,029		24		24,166		69,655
Transport and Main Roads		44,287		95,717		84,886		51,740		108,073		384,703
Other Agencies4		75		69		114		60		88		406
Anticipated Contingency Reserve and Other Adjustments5
Funds Allocated		158,097		339,651		370,569		186,363		1,481,797		2,536,477

Notes

1. Numbers may not add due to rounding and allocations of adjustments.

2. Includes all associated statutory bodies.

3. The Public Safety Business Agency is a capital purchaser for Queensland Fire and Emergency Services, Queensland Police Service and the Office of the Inspector-General Emergency Management.

4. Includes other Government entities with non-material capital programs.

5. The Anticipated Contingency Reserve and other adjustments have been spread across statistical areas proportionate to capital spends.

144

Capital Statement 2018-19

	Ipswich		Wide Bay		Darling Downs						Gold Coast
					DD Maranoa		Toowoomba		Sub total
Entity2	$‘000		$‘000		$‘000		$‘000		$‘000		$‘000
Aboriginal and Torres Strait Islander Partnerships		—		—		—		—		—		—
Agriculture and Fisheries		—		1,050		1,000		4,050		5,050		120
Child Safety, Youth and Women		9,971		2,721		1,103		1,303		2,406		4,873
Communities, Disability Services and Seniors		3,327		3,061		681		345		1,026		356
Education		59,483		20,764		12,872		32,897		45,769		83,554
Electoral Commission of Queensland		—		—		—		—		—		—
Employment, Small Business and Training		1,901		1,618		708		4,855		5,563		3,263
Environment and Science		3,053		16,065		1,139		1,374		2,513		5,243
Housing and Public Works		32,699		11,447		2,903		6,716		9,619		26,666
Innovation, Tourism Industry Development and the Commonwealth Games		—		—		—		—		—		172
Justice and Attorney-General		1,397		1,273		504		999		1,503		3,847
Legislative Assembly of Queensland		196		167		73		88		161		337
Local Government, Racing and Multicultural Affairs		91		82		34		46		80		156
Natural Resources, Mines and Energy		132,279		213,253		145,256		134,400		279,656		122,024
Premier and Cabinet		—		—		—		—		—		—
Public Safety Business Agency3		47,331		12,584		5,570		8,253		13,823		22,563
Queensland Corrective Services		18,560		2,482		1,087		1,312		2,399		5,005
Queensland Fire and Emergency Services		403		343		150		181		331		691
Queensland Health		40,799		76,161		60,498		19,349		79,847		73,797
Queensland Police Service		1,409		1,199		525		634		1,159		2,419
Queensland Treasury		—		—		—		—		—		—
State Development, Manufacturing, Infrastructure and Planning		4,634		38		16		20		36		3,108
Transport and Main Roads		601,780		142,134		175,471		570,596		746,067		246,812
Other Agencies4		112		95		42		50		92		192
Anticipated Contingency Reserve and Other Adjustments5
Funds Allocated		925,006		488,365		394,937		759,218		1,154,155		583,487

Notes

1. Numbers may not add due to rounding and allocations of adjustments.

2. Includes all associated statutory bodies.

3. The Public Safety Business Agency is a capital purchaser for Queensland Fire and Emergency Services, Queensland Police Service and the Office of the Inspector-General Emergency Management.

4. Includes other Government entities with non-material capital programs.

5. The Anticipated Contingency Reserve and other adjustments have been spread across statistical areas proportionate to capital spends.

145

Capital Statement 2018-19

	Logan – Beaudesert		Mackay - Whitsunday		Outback and Far North Queensland						Central
					Outback		Cairns		Sub total		Queensland Fitzroy
Entity2	$‘000		$‘000		$‘000		$‘000		$‘000		$‘000
Aboriginal and Torres Strait Islander Partnerships		—		—		6,095		47		6,142		—
Agriculture and Fisheries		—		80		1,200		1,150		2,350		210
Child Safety, Youth and Women		2,757		1,556		1,296		2,337		3,633		2,014
Communities, Disability Services and Seniors		301		3,794		320		152		472		147
Education		45,766		20,170		4,123		17,479		21,602		28,146
Electoral Commission of Queensland		—		—		—		—		—		—
Employment, Small Business and Training		1,843		1,037		480		1,377		1,857		1,352
Environment and Science		2,962		9,196		772		2,767		3,539		7,422
Housing and Public Works		29,558		6,135		42,149		54,570		96,719		13,516
Innovation, Tourism Industry Development and the Commonwealth Games		—		—		—		—		—		—
Justice and Attorney-General		5,012		807		627		1,009		1,636		7,548
Legislative Assembly of Queensland		190		107		50		142		192		139
Local Government, Racing and Multicultural Affairs		88		50		1,988		71		2,059		70
Natural Resources, Mines and Energy		19,108		102,613		59,170		105,533		164,703		392,262
Premier and Cabinet		—		—		—		—		—		—
Public Safety Business Agency3		14,557		6,640		9,418		11,294		20,712		9,146
Queensland Corrective Services		2,827		1,591		737		2,111		2,848		109,074
Queensland Fire and Emergency Services		390		220		102		292		394		286
Queensland Health		35,648		36,056		35,348		54,465		89,813		77,271
Queensland Police Service		1,366		769		356		1,020		1,376		1,002
Queensland Treasury		—		—		—		—		—		—
State Development, Manufacturing, Infrastructure and Planning		43		6,524		211		5,032		5,243		4,261
Transport and Main Roads		146,918		272,191		192,335		166,320		358,655		298,455
Other Agencies4		108		61		28		81		109		79
Anticipated Contingency Reserve and Other Adjustments5
Funds Allocated		298,341		452,750		344,005		411,922		755,927		918,233

Notes

1. Numbers may not add due to rounding and allocations of adjustments.

2. Includes all associated statutory bodies.

3. The Public Safety Business Agency is a capital purchaser for Queensland Fire and Emergency Services, Queensland Police Service and the Office of the Inspector-General Emergency Management.

4. Includes other Government entities with non-material capital programs.

5. The Anticipated Contingency Reserve and other adjustments have been spread across statistical areas proportionate to capital spends.

146

Capital Statement 2018-19

	Sunshine Coast and Moreton Bay								Townsville		Totals1
	Sunshine		Moreton		Moreton
	Coast		Bay North		Bay South		Sub total
Entity2	$‘000		$‘000		$‘000		$‘000		$‘000		$‘000
Aboriginal and Torres Strait Islander Partnerships		—		—		—		—		47		6,473
Agriculture and Fisheries		1,150		1,000		20		2,170		1,400		23,191
Child Safety, Youth and Women		2,916		2,026		1,654		6,596		2,288		49,589
Communities, Disability Services and Seniors		493		148		251		892		149		17,001
Education		61,081		18,567		32,198		111,846		25,335		674,301
Electoral Commission of Queensland		—		—		—		—		—		3,381
Employment, Small Business and Training		1,966		1,363		1,116		4,445		27,368		57,400
Environment and Science		6,503		2,190		3,193		11,886		2,198		102,391
Housing and Public Works		23,021		20,918		4,443		48,382		36,373		459,662
Innovation, Tourism Industry Development and the Commonwealth Games		—		—		—		—		—		196
Justice and Attorney-General		1,398		970		794		3,162		4,649		75,728
Legislative Assembly of Queensland		203		141		115		459		141		9,214
Local Government, Racing and Multicultural Affairs		94		65		53		212		71		3,290
Natural Resources, Mines and Energy		130,733		6,488		36,797		174,018		192,175		2,423,528
Premier and Cabinet		—		—		—		—		—		1,047
Public Safety Business Agency3		12,093		21,347		6,723		40,163		8,245		254,082
Queensland Corrective Services		3,015		5,559		1,711		10,285		2,099		167,752
Queensland Fire and Emergency Services		416		289		236		941		290		5,750
Queensland Health		104,023		43,083		21,457		168,563		65,447		985,479
Queensland Police Service		1,457		1,010		827		3,294		1,014		20,124
Queensland Treasury		—		—		—		—		—		739,125
State Development, Manufacturing, Infrastructure and Planning		296		32		26		354		138,957		232,853
Transport and Main Roads		398,765		65,168		60,585		524,518		255,298		3,977,531
Other Agencies4		116		80		66		262		80		1,596
Anticipated Contingency Reserve and Other Adjustments5												(369,175	)
Funds Allocated		722,842		183,612		166,085		1,072,539		736,229		9,921,509

Notes

1. Numbers may not add due to rounding and allocations of adjustments.

2. Includes all associated statutory bodies.

3. The Public Safety Business Agency is a capital purchaser for Queensland Fire and Emergency Services, Queensland Police Service and the Office of the Inspector-General Emergency Management.

4. Includes other Government entities with non-material capital programs.

5. The Anticipated Contingency Reserve and other adjustments have been spread across statistical areas proportionate to capital spends.

147

Queensland Budget 2018-19 Capital Statement Budget Paper No. 3

Queensland Budget 2018-19

Capital Statement  Budget Paper No.3

budget.qld.gov.au

Queensland Budget 2018-19

BUDGET MEASURES

Budget Paper No.4

budget.qld.gov.au

2018-19 Queensland Budget Papers

1. Budget Speech

2. Budget Strategy and Outlook

3. Capital Statement

4. Budget Measures

5. Service Delivery Statements

Appropriation Bills                

Budget Highlights

The Budget Papers are available online at budget.qld.gov.au

© Crown copyright

All rights reserved

Queensland Government 2018

Excerpts from this publication may be reproduced, with appropriate

acknowledgement, as permitted under the Copyright Act.

Budget Measures

Budget Paper No.4

ISSN 1445-4890 (Print)

ISSN 1445-4904 (Online)

Budget Measures 2018-19

State Budget

2018-19

Budget Measures

Budget Paper No. 4

Budget Measures 2018-19

Contents

1	Overview	1
1.1	Introduction	3
1.2	Explanation of scope and terms	4
1.3	Overview	6
1.4	Government indexation policy	10
1.5	Funding of election commitments	10
2	Expense Measures	28
	Introduction	28
	Department of Aboriginal and Torres Strait Islander Partnerships	29
	Department of Agriculture and Fisheries	31
	Department of Child Safety, Youth and Women	35
	Department of Communities, Disability Services and Seniors	38
	Department of Education	41
	Department of Employment, Small Business and Training	43
	Department of Environment and Science	46
	Department of Housing and Public Works	55
	Department of Innovation, Tourism Industry Development and the Commonwealth Games	60
	Department of Justice and Attorney-General	63
	Department of Local Government, Racing and Multicultural Affairs	70
	Department of Natural Resources, Mines and Energy	75
	Department of State Development, Manufacturing, Infrastructure and Planning	78
	Department of the Premier and Cabinet	85
	Department of Transport and Main Roads	87
	Electoral Commission of Queensland	93
	Legislative Assembly of Queensland	94
	Public Safety Business Agency	95

Budget Measures 2018-19

	Public Service Commission	96
	Queensland Corrective Services	97
	Queensland Fire and Emergency Services	100
	Queensland Health	101
	Queensland Police Service	105
	Queensland Treasury	109
3	Capital Measures	111
	Introduction	111
	Department of Agriculture and Fisheries	112
	Department of Child Safety, Youth and Women	113
	Department of Communities, Disability Services and Seniors	114
	Department of Education	115
	Department of Employment, Small Business and Training	117
	Department of Environment and Science	118
	Department of Housing and Public Works	121
	Department of Innovation, Tourism Industry Development and the Commonwealth Games	122
	Department of Justice and Attorney-General	123
	Department of Local Government, Racing and Multicultural Affairs	124
	Department of Natural Resources, Mines and Energy	125
	Department of State Development, Manufacturing, Infrastructure and Planning	126
	Department of Transport and Main Roads	127
	Legislative Assembly of Queensland	134
	Public Safety Business Agency	136
	Queensland Corrective Services	137
	Queensland Fire and Emergency Services	138
	Queensland Health	139
	Queensland Police Service	141
	Queensland Treasury	143

Budget Measures 2018-19

4	Revenue Measures	144
	Introduction	144
	Department of Agriculture and Fisheries	145
	Department of Education	146
	Department of Environment and Science	147
	Department of Natural Resources, Mines and Energy	148
	Department of Transport and Main Roads	149
	Queensland Treasury	151

Budget Measures 2018-19

1 Overview

Features

• This Budget Paper presents a consolidation of expense, capital and revenue measures reflecting decisions since the 2017-18 Budget.

• The 2018-19 Budget measures will support infrastructure, skills and services to promote jobs and build our cities and regional Queensland for the future.

• The Budget will provide infrastructure to cater to our growing population of five million, drive transformative change, encouraging private investment and making our communities better places to live.

• Delivering on our election commitments, the Government has provided increased funding of $570.8 million over six years to enhance public hospital capacity and services in the south east Queensland growth corridor, including funding for the redevelopments at the Logan, Caboolture and Ipswich hospitals and to commence planning for the Wide Bay region. Total funding included in the Building Better Hospitals package is $679 million.

• The Government is also providing increased funding of $554.5 million over four years to support frontline staff, improve health services and meet the ongoing growth in demand for health and ambulance services.

• Delivering on our election commitment, the Government is providing additional funding of $308 million over six years from 2018-19, bringing total funding to $808 million across seven years to deliver world class learning environments for students and to address enrolment growth pressures through the Building Future Schools Fund.

• Additional State Government funding of $897.5 million is provided for planning and upgrades to the M1 Pacific Motorway, namely the Varsity Lakes to Tugun and Eight Mile Plains to Daisy Hill upgrades, under 50:50 funding arrangements with the Australian Government.

• The Government is providing increased funding of $176 million over four years to support the construction of the Rookwood Weir on the Fitzroy River which is being matched by the Australian Government capital contribution of $176 million. This will provide drought contingency supplies for Rockhampton, Gladstone and Yeppoon and support agriculture.

• The Government has provided increased funding of $50 million from 2017-18 to continue funding programs under the Advance Queensland initiative. Measures funded will include expansion of ‘The Precinct’, the State’s flagship hub for start-ups and support for the Clem Jones Centre for Ageing and Dementia Research, and a range of programs to drive and scale innovation in Queensland including driving the development of key technologies like artificial intelligence, big data, drones and robotics in Queensland industry and programs focussing on innovation and the digital economy in our regions, bringing total funding for this program to $650 million.

1

Budget Measures 2018-19

• In order to address cost of living pressures, the Electricity Asset Ownership Dividend provides additional funding of $200 million over two years from 2017-18 to deliver electricity bill relief for Queensland households through a $50 electricity rebate in 2017-18 and 2018-19. This initiative is funded from the dividends of Queensland’s Government-owned corporations and forms part of the Government’s $2 billion Affordable Energy Plan.

• Back to Work has increased funding of $155 million over four years from 2017-18 to extend the regional program to 30 June 2020 to continue to provide employer support payments to employers hiring eligible unemployed jobseekers in regional Queensland.

• Skilling Queenslanders for Work has increased funding of $180 million over three years from 2018-19 to boost the initiative to fund more apprenticeships and increase workforce participation through a suite of targeted skills and training programs.

• The Government is providing increased funding of $40 million over four years from 2018-19 and $10.4 million per annum ongoing towards management of the Great Barrier Reef including $26 million over four years and $10.4 million per annum ongoing for the Great Barrier Reef Joint Field Management Program to protect and maintain marine and island ecosystems in the Great Barrier Reef, and $13.8 million over four years from 2018-19 to extend the Queensland Reef Water Quality Program. This will bring total funding to $330 million over five years.

• The Government is providing increased funding of $4 million over two years to establish a scientific program to support an enhanced Statewide Landcover and Trees Study (SLATS) to identify and report on the condition and extent of regrowth vegetation and inform habitat conservation.

• The Government is introducing a Waste Disposal Levy of $70 per tonne (higher for regulated waste) increasing $5 per annum, commencing in the first quarter of 2019. The levy will meet the costs of avoiding direct impacts on households and provide funding for industry programs and other environmental priorities of Government.

• This will include providing additional funding of $100 million over three years for the Resource Recovery Industry Development Program and $32 million in 2018-19 for advance payments to councils to meet the cost of municipal household waste sent to landfill and to avoid any direct impact on households associated with the introduction of the Waste Disposal Levy in the first quarter of 2019.

• The Government is providing additional funding of $38 million over four years to establish the Disaster Resilience Fund (DRF). The DRF funds local governments, State agencies and non-government organisations to deliver mitigation and resilience projects.

• The Government has committed to deliver a new $150 million state of the art theatre for Brisbane, investing $125 million over four years from 2018-19.

• To provide enhanced performance facilities for Queensland Ballet, the Government is providing $14 million over two years towards the refurbishment of the Thomas Dixon Centre.

2

Budget Measures 2018-19

1.1 Introduction

The purpose of this document is to provide a consolidated view of policy decisions with budgetary impacts made by the Government since the 2017-18 Budget.

This document complements other Budget Papers, in particular Budget Paper No. 2 Budget Strategy and Outlook, Budget Paper No. 3 Capital Statement and the Service Delivery Statements.

This paper includes only new policy decisions and does not detail the full amount of additional funding being provided to agencies to deliver services and infrastructure. Other adjustments, including those that are parameter based and where the funding formula remains unchanged, are similarly excluded.

This paper also sets out the costing of election commitments as published prior to the Election conducted in November 2017.

The total funding impact of new measures is summarised in Tables 1.2 to 1.4 at the conclusion of this chapter.

For details on the total funding available to agencies, refer to agencies’ Service Delivery Statements.

3

Budget Measures 2018-19

1.2 Explanation of scope and terms

The following is a description of the scope and terms applied in this document.

Scope

This document includes measures with the following features:

• Sector. Only Queensland General Government sector agencies are included. Measures involving Government-owned corporations or other Public Non-financial Corporations sector agencies are within scope only if the measures are being funded directly by the General Government sector or if there is a flow through effect (for example, Community Service Obligations).

• Timeframe. Measures based on decisions made by the Government since the 2017-18 Budget.

• Type. Measures with budgetary impacts, in particular:

(i) expense and capital measures with service delivery, capital enhancement, grant or subsidy impacts on the community; and

(ii) revenue measures involving a significant change in revenue policy, including changes in the tax rate.

• Initiatives of a technical nature or non-policy based adjustments, such as parameter based funding adjustments, are not included if the formula to calculate these adjustments has not changed, as they do not reflect changes in Government policy. The main focus is on measures reflecting policy decisions that impact directly on the community through service delivery or other means.

• Materiality. Minor measures or measures with non-significant community impact are not included in this document.

Funding basis

Tables in this document are presented on a net funding basis.

• Net funding refers to the impact that the funding of the measure has on appropriations from the Consolidated Fund or centrally held funds to the relevant General Government agency. The tables do not include funding directed to the measure from existing agency resources or other sources.

• Amounts refer to additional funding being provided to agencies for a particular program or project, as a result of decisions by Government since the 2017-18 Budget. The amount provided for a measure may differ from other Budget papers, such as Budget Paper No. 3 Capital Statement, that may refer to total funding.

4

Budget Measures 2018-19

• Where a measure involves material expenditure or revenue collections by more than one department, the measure is reported under each department involved. The addition of each individual department’s portion of a particular measure may not equate to the reported total whole-of-Government figure due to the omission of some departments’ portions that did not meet Budget Paper 4’s materiality threshold (i.e. $250,000 over five years).

• Amounts included in the tables relating to revenue measures represent the impact of the measure on Government revenue (with a positive amount representing additional revenue).

Tables 1.2 to 1.4 identify expense, capital and revenue measures separately, categorised as follows:

• up to and including 2017-18 Mid-Year Fiscal and Economic Review (MYFER) (which includes 2017 Election Commitments); and

• since the 2017-18 MYFER.

5

Budget Measures 2018-19

1.3 Overview

The following section presents selected measures relating to decisions taken since the 2017-18 Budget.

1.3.1 Delivering infrastructure

The 2018-19 Budget invests $45.8 billion in infrastructure over the forward estimates including projects such as the Cairns Convention Centre, Cross River Rail, the M1 and Bruce Highway upgrades, Rookwood Weir and Townsville Stadium, representing the biggest capital works program since 2012-13 which was elevated by disaster recovery efforts.

Measures from across Government that will deliver infrastructure for Queensland that will drive the economy, deliver better services and support tens of thousands of Queensland jobs every year include:

• M1 Pacific Motorway: additional funding of $897.5 million is provided for planning and upgrades to the M1 Pacific Motorway

• Future Proofing the Bruce: additional funding $10 million over two years to develop a 15-year vision and initial Action Plan to identify and prioritise projects to be delivered as part of upgrades to the Bruce Highway and $253.5 million over three years to delivery priority Bruce Highway upgrade projects

• Building Future Schools Fund: additional funding of $308 million over six years from 2018-19, bringing total funding to $808 million across seven years to deliver world class learning environments for students

• Rookwood Weir: increased funding of $176 million over four years to support the construction of the Rookwood Weir on the Fitzroy River, which is being matched by the Australian Government capital contribution of $176 million and providing drought contingency supplies for Rockhampton, Gladstone and Yeppoon

• New Performing Arts Venue at the Queensland Performing Arts Centre: the Government has committed to deliver a new $150 million state of the art theatre for Brisbane, investing $125 million over four years from 2018-19 to build the new performing arts venue at the Queensland Performing Arts Centre, benefiting Queensland artists and audiences

• Growth Area and Regional Infrastructure Investment Fund: additional funding of $40 million over two years from 2018-19, held centrally, to invest in infrastructure that improves prosperity and liveability for Queenslanders living in outer urban and regional Queensland

• Beerburrum to Nambour Rail: the Government is providing funding of $160.8 million over four years towards the Beerburrum to Nambour rail duplication project. The Australian Government has provided an initial $390 million over five years towards this measure.

6

Budget Measures 2018-19

1.3.2 Skills for Queensland jobs

Measures from across Government that will enhance access to training and jobs for Queenslanders include:

• Skilling Queenslanders for Work: increased funding of $180 million over three years from 2018-19 to boost the initiative to fund more apprenticeships and increase workforce participation through a suite of targeted skills and training programs

• Back to Work: increased funding of $155 million over four years from 2017-18 to extend the regional program to 30 June 2020 to continue to provide employer support payments to employers hiring eligible unemployed jobseekers in regional Queensland

• Expansion of the Jobs and Regional Growth Fund: increased funding of $20 million for the Jobs and Regional Growth Fund to help facilitate private sector projects which create employment and economic growth opportunities in regional Queensland by focussing on regions with higher than average unemployment

• Driving Queensland Agriculture and Rural Jobs Growth: additional funding of $19.2 million over three years to support Queensland agriculture and rural jobs.

1.3.3 Industry Attraction and Support

In April 2018, more than a billion people around the world saw the action of the Gold Coast 2018 Commonwealth Games, the biggest event staged in Queensland’s history.

Government and private sector investments valued at approximately $2.6 billion leave a legacy of upgraded transport, sporting and community facilities for use by local communities for the years and decades to come. Griffith University modelling predicts, after taking into account Government’s $1.5 billion investment, the Games will have contributed $2 billion to Gross State Product for the State.

Tourism is a $25 billion industry for Queensland and the 2018-19 Budget includes a range of support to help ensure the State remains a destination of choice for interstate and international visitors. This includes continued funding for Tourism and Events Queensland to attract more visitors through marketing, events and experience development as well as $94.6 million over five years to progress programs under the Growing Tourism, Growing Tourism Jobs initiative including:

• Attracting Tourism Fund: additional funding of $48.6 million to provide incentives to attract new and international airline routes and cruise ships to Queensland

• Regional Tourism Infrastructure and Experience Development Program: additional funding of $46 million to assist communities to grow tourism by developing new and improved tourism experiences, such as the Wangetti Trail in the State’s Far North, and develop tourism industry capability, including facilitation of outback tourism projects.

Other initiatives include $26.2 million over four years to attract future major events as part of the Advancing Tourism program, additional funding of $25 million over three years to establish a Reef Resort Rejuvenation Fund to deliver infrastructure for the Great Barrier Reef islands with projects focused on cleaning, greening and growing and $2.2 million to expand the Australian

Workers Heritage Centre at Barcaldine.

7

Budget Measures 2018-19

1.3.4 Protecting the Great Barrier Reef

To support the reef and manage the impacts of climate change, the Government is investing $330 million over five years. A number of initiatives are outlined in the 2018-19 Budget, including:

• Great Barrier Reef - Joint Field Management Program: increased funding of $26 million over four years and $10.4 million per annum ongoing to protect and maintain marine and island ecosystems in the Great Barrier Reef

• Great Barrier Reef - Water Quality: increased funding of $13.8 million over four years to extend the Queensland Reef Water Quality Program

• Climate Change Implementing Queensland’s Response: increased funding of $5.6 million over four years to enhance and strengthen delivery of the Queensland Climate Change Response which will include continued development and implementation of the Government Adaptation Action Plan

• Enhanced Statewide Landcover and Trees Study: increased funding of $4 million over two years to establish a scientific program to support an enhanced Statewide Landcover and Trees Study to identify and report on the condition and extent of regrowth vegetation and inform habitat conservation.

1.3.5 Advance Queensland

In a globally competitive market we need to ensure we are well positioned to grow opportunities for business and industry through innovation and the commercialisation of ideas. Through its flagship Advance Queensland initiative totalling $650 million, the Queensland Government maintains a strong focus on fostering innovation and entrepreneurship to enable Queensland businesses to adapt rapidly to the ever-changing global business environment.

Measures from across Government that will support Queenslanders to participate and succeed in the modern economy include:

• Advance Queensland Foundations for the Future: increased funding of $73 million over four years for the Advance Queensland initiative including $30 million for Ignite Ideas which is helping Queensland startups and small and medium enterprises to succeed

• Advance Queensland Increase: increased funding of $50 million over five years to continue funding programs including expansion of ‘The Precinct’, the State’s flagship hub for start-ups, support for the Clem Jones Centre for Ageing and Dementia Research, and a range of programs to drive and scale innovation in Queensland

• Advance Queensland Industry Attraction Fund: $40 million over two years has been provided in the 2018-19 Budget to extend the Advance Queensland Industry Attraction Fund, bringing total funding to $105 million, which will continue to attract interstate and overseas businesses considering moving to Queensland, or Queensland-based businesses interested in expanding.

8

Budget Measures 2018-19

1.3.6 Supporting Queensland businesses

Queensland is home to more than 426,000 small businesses which are at the centre of almost every industry sector across the State. The Government has a series of programs and initiatives developed with the aim of providing Queensland businesses the opportunity to grow, support increased job intake and boost the State’s economy. Buy Queensland, introduced in September 2017, prioritises local businesses, jobs and better social outcomes. Since Buy Queensland came into effect, 84% of Queensland Government contracts awarded through QTenders have gone to Queensland businesses.

Measures in the 2018-19 Budget that support Queensland businesses include:

• Business Development Fund: increased funding of $40 million over two years to continue to support the growth of angel and venture capital funding available to Queensland businesses, thereby strengthening Queensland’s entrepreneurial and start-up eco-system

• EcoBiz Program for Small to Medium Enterprises: increased funding of $3.9 million over four years to continue delivering the ecoBiz program that helps small to medium sized businesses identify and achieve financial savings and eco-efficiency across energy, water and waste

• Security of Payment for Subcontractors in the Building and Construction Industry: additional funding of $4.6 million over three years including $3.1 million to promote public awareness of the Government’s project bank account reforms to improve security of payment for subcontractors in the building and construction industry.

9

Budget Measures 2018-19

1.4 Government Indexation Policy

In order to relieve cost of living pressures, the Queensland Government will move to a CPI-based escalation of fees and charges and the penalty unit from 2019-20 that will replace the previous Government’s policy of an indexation rate of 3.5% per annum which was introduced in 2012-13. From 2019-20 onwards, the CPI is projected to increase by 2.5% per annum, consistent with the mid-point of the Reserve Bank of Australia’s target band. This measure results in a reduction in revenue of $25 million in 2019-20 and $53 million in 2020-21. This change means fees and charges subject to the Government indexation policy, including motor vehicle registration fees, transport and traffic fees and the Emergency Management Levy will only rise at the rate of inflation.

1.5 Funding of election commitments

Consistent with its measured and responsible management of the State’s finances, the Government offset the cost of its election commitments through a range of measures as outlined in Table 1.1 below.

The total cost of election commitments is defined as where additional funding from the Consolidated Fund has been appropriated to agencies or a funding contingency has been set up centrally. This excludes any costs associated with election commitments that are funded through other means or funded internally by agencies.

Where a decision has been taken since the election, to approve additional funding or reprioritise existing funding for a measure, or a revenue forecast has been revised, the funding shown for a measure in Tables 1.2, 1.3 or 1.4 may not be consistent with the totals set out in Table 1.1.

10

Budget Measures 2018-19

Table 1.1 2017 Election Commitments

	2017-18			2018-19		2019-20		2020-21		Total
	$ million			$ million		$ million		$ million		$ million
Total cost of election commitments - Recurrent commitments		122.5			435.7		436.0		388.9		1,383.0
Savings and Reprioritisation - Additional Foreign Acquirer Duty increase to 7%		—			33.0		33.0		33.0		99.0
Land Tax increase to rate on holdings above $10 million by 2.25%		—			71.0		76.0		80.0		227.0
Motor Vehicle Duty ($2 increase per $100 of dutiable value over $100,000)		—			24.0		25.2		26.5		75.8
Point of Consumption Betting Tax (15% of net wagering revenue)		—			30.0		30.0		30.0		90.0
Reprioritisation 1% (excluding Health)1		153.4			290.4		284.3		288.8		1,016.9
Total Savings and Reprioritisation		153.4			448.4		448.6		458.2		1,508.7
Change to Operating Position		30.9			12.8		12.6		69.4		125.7
Capital commitments		31.7			359.1		489.6		523.9		1,404.3
Capital Funding sources and savings		851.0			120.3		193.8		375.0		1,540.1
Net impact on borrowing of capital expenditure and savings measures		(819.3	)		238.8		295.8		148.9		(135.8	)

1. The Government has implemented a whole-of-Government reprioritisation program to contribute to whole-of-Government priorities. There will be no forced or voluntary redundancy programs in response to reprioritisation measures.

Note: Totals may not add exactly due to rounding

11

Budget Measures 2018-19

Table 1.2: Expense measures since the 2017-18 Budget

	2017-18			2018-19			2019-20		2020-21		2021-22
Expense measures up to and including MYFER	$‘000			$‘000			$‘000		$‘000		$‘000
Whole-of-Government Measures
Whole-of-Government reprioritisation		(153,399	)		(290,013	)		—		—		—
Portfolio Total		(153,399	)		(290,013	)		—		—		—
Department of Aboriginal and Torres Strait Islander Partnerships
Cape York Splash Parks1		4,000			—			—		—		—
Kupai Omasker1		1,000			—			—		—		—
Portfolio Total		5,000			—			—		—		—
Department of Agriculture and Fisheries
Driving Queensland Agriculture and Rural Jobs Growth		—			7,400			7,400		4,400		—
10 Year Plan for the National Red Imported Fire Ant Eradication Program in South East Queensland		2,358			2,453			2,551		2,651		2,754
Supporting Queensland`s Dairy Producers		360			260			50		—		—
Panama Disease Tropical Race 4 Program1		2,751			223			265		—		—
Bundaberg Fruit Fly Trial		400			—			—		—		—
Paws and Claws Capital Grant		—			—			—		—		—
Portfolio Total		5,869			10,336			10,266		7,051		2,754
Department of Child Safety, Youth and Women
Transition to Success		—			2,500			—		—		—
Portfolio Total		—			2,500			—		—		—
Department of Communities, Disability Services and Seniors
Electricity Asset Ownership Dividend		100,000			100,000			—		—		—
Disability Advocates		—			750			4,693		4,047		—
School Breakfast Program		250			250			250		250		—
Supporting Veterans - Online Portal		—			100			100		—		—
Portfolio Total		100,250			101,100			5,043		4,297		—
Department of Education
New Senior Assessment and Tertiary Entrance Systems		3,046			7,752			6,166		2,156		2,156
Instrumental Music Program1		—			3,110			4,890		6,960		—
Implementation of the Labour Hire Licensing Act 20171		2,064			2,156			2,221		2,288		—
Portfolio Total		5,110			13,018			13,277		11,404		2,156
Department of Employment, Small Business and Training
Back to Work - Extension		20,000			45,000			45,000		45,000		—
Back to Work - Mature Aged Worker Boost		5,000			—			—		—		—
Skilling Queenslanders for Work		—			20,000			80,000		80,000		—
Supporting Queensland’s Dairy Producers		250			40			—		—		—
Portfolio Total		25,250			65,040			125,000		125,000		—

12

Budget Measures 2018-19

	2017-18		2018-19		2019-20		2020-21		2021-22
Expense measures up to and including MYFER	$‘000		$‘000		$‘000		$‘000		$‘000
Department of Environment and Science
Queensland Cultural Centre - Electricity Supplementation and Future Energy Efficiency		1,744		1,800		—		—		—
Government Action on North Stradbroke Island (Minjerribah)		1,352		1,280		1,350		1,350		1,350
National Parks Harsh Environment Fire Vehicles		—		804		—		—		—
Protected Area Estate		153		102		155		125		130
Panama Disease Tropical Race 4 Program		100		100		100		—		—
Climate Change - Implementing Queensland’s Response1		—		—		—		—		—
Container Refund Scheme		1,500		—		—		—		—
Heritage Property - Urgent Remedial Conservation Works		—		—		—		—		—
Protected Area Estate - Acquisition		—		—		—		—		—
Reef Island Decarbonisation		1,730		—		—		—		—
Waste Investigation		846		—		—		—		—
Woodfordia Infrastructure Upgrade		1,000		—		—		—		—
Portfolio Total		8,425		4,086		1,605		1,475		1,480
Department of Housing and Public Works
Sports Grant Funding Boost		—		7,982		2,450		—		—
Underwood Sports Park		4,110		5,000		—		—		—
Safe, secure sporting and entertainment facilities		5,800		2,500		—		—		—
Zillmere Sports Centre		500		2,000		3,000		—		—
Security of Payment for Subcontractors in the Building and Construction Industry		2,620		1,000		1,000		—		—
Building and Asset Services Apprenticeship Program and Compliance with the Queensland Government Building and Construction Training Policy		1,000		800		800		—		—
Non Conforming Building Products Audit Taskforce		4,462		393		—		—		—
University of the Sunshine Coast Stadium		7,000		—		—		—		—
Portfolio Total		25,492		19,675		7,250		—		—
Department of Innovation, Tourism Industry Development and the Commonwealth Games
Making Queensland Australia’s Events Capital		—		7,500		12,000		16,500		—
Growing Tourism, Growing Tourism Jobs1		9,000		18,200		24,700		32,700		—
Advance Queensland Foundations of the Future		—		15,900		16,000		18,000		23,150
Great Barrier Reef Island Rejuvenation Package		5,000		10,000		10,000		—		—
Major Events Funding1		10,715		4,850		5,276		5,314		—
Portfolio Total		24,715		56,450		67,976		72,514		23,150
Department of Local Government, Racing and Multicultural Affairs
Works for Queensland		—		50,000		75,000		75,000		—
Support for Country Racing		11,600		12,600		13,600		17,600		—
Celebrating Multicultural Queensland Grants Program		—		1,000		1,000		1,000		—
Show Society Grants Program1		50		80		120		150		—
Ayr Nature-Based Playground		1,500		—		—		—		—
Beautiful Bowen		5,000		—		—		—		—

13

Budget Measures 2018-19

	2017-18		2018-19		2019-20		2020-21		2021-22
Expense measures up to and including MYFER	$‘000		$‘000		$‘000		$‘000		$‘000
Mount Archer Master Plan		400		—		—		—		—
Support for Refugees and Asylum Seekers1		700		—		—		—		—
Portfolio Total		19,250		63,680		89,720		93,750		—
Department of Natural Resources, Mines and Energy
Solar Thermal Plant Capital Contribution		—		50,000		—		—		—
Affordable Energy Plan		18,200		27,000		24,800		—		—
Coal Mine Workers’ Health Scheme		7,565		9,468		—		—		—
Gas Action Plan		3,181		936		300		—		—
Extending Existing Drought Relief Arrangements1		—		—		—		—		—
Government Action on North Stradbroke Island (Minjerribah)		—		—		—		—		—
Portfolio Total		28,946		87,404		25,100		—		—
Department of State Development, Manufacturing, Infrastructure and Planning
Building our Regions		—		35,000		17,500		17,500		—
Queensland Made		4,000		10,000		13,000		13,000		—
Queensland Reconstruction Authority Bluewater Trail and Queens Park Revitalisation		—		8,864		—		—		—
Government Action on North Stradbroke Island (Minjerribah) - Economic Transition Strategy		1,500		3,250		—		—		—
Strong and Sustainable Resources		200		2,300		—		—		—
Government Action on North Stradbroke Island (Minjerribah) - One Mile Infrastructure Works		—		500		500		—		—
Advance Queensland Industry Attraction Fund		—		—		—		—		—
Expansion of the Jobs and Regional Growth Fund		—		—		—		—		—
Government Action on North Stradbroke Island (Minjerribah) - Bushfire Management Plans		900		—		—		—		—
Made in Queensland		5,000		—		10,000		5,000		—
Portfolio Total		11,600		59,914		41,000		35,500		—
Department of the Premier and Cabinet
Screen Queensland Production Attraction Strategy		10,000		10,000		—		—		—
Portfolio Total		10,000		10,000		—		—		—
Department of Transport and Main Roads
Eastern Transitway1		2,000		12,000		8,000		—		—
Station Upgrades and Park‘n’Ride facilities		1,860		9,570		21,290		32,460		42,459
Bus Driver Wage Parity in Cairns and Sunshine Coast		2,082		1,466		—		—		—
Queensland Walking Strategy1		400		700		1,000		400		—
Beams Road Overpass Investigation1		400		—		—		—		—
Future Proofing the Bruce		—		—		5,000		5,000		—
M1 Pacific Motorway - Eight Mile Plains to Logan Motorway Planning		—		—		8,000		8,000		—
New Generation Rollingstock Business Operating Model		9,250		—		—		—		—
Portfolio Total		15,992		23,736		43,290		45,860		42,459

14

Budget Measures 2018-19

	2017-18		2018-19		2019-20		2020-21		2021-22
Expense measures up to and including MYFER	$‘000		$‘000		$‘000		$‘000		$‘000
Legislative Assembly of Queensland
2017 Electoral Boundary Redistribution and Election1		292		480		480		480		480
Parliamentary Annexe Lift Upgrade Program		60		60		60		60		60
Portfolio Total		352		540		540		540		540
Queensland Corrective Services
Borallon Training and Correctional Centre - Final Stage Recommissioning		600		6,941		6,941		6,941		6,941
Portfolio Total		600		6,941		6,941		6,941		6,941
Queensland Fire and Emergency Services
Additional Firefighters		—		3,590		6,070		8,670		11,202
Non Conforming Building Products Audit Task Force		504		50		—		—		—
Portfolio Total		504		3,640		6,070		8,670		11,202
Queensland Health
Specialist Outpatient Strategy		—		77,360		77,360		—		—
Nurse Navigators		—		—		53,904		55,663		—
Midwives		13,700		14,100		14,400		14,800		—
Deadly Choices Healthy Lifestyle Program		8,000		8,000		—		—		—
Rockhampton Drug Treatment and Rehabilitation Facility		—		—		1,480		3,320
Building Better Hospitals - Cancer Council Queensland Lodges		—		5,000		—		—		—
Queensland Ambulance Service - Classification Structure		33,980		57,997		100,087		107,630		107,630
Portfolio Total		55,680		162,457		247,231		181,413		107,630
Queensland Police Service
Increased Counter-Terrorism Capability		5,466		15,695		16,158		16,531		16,910
Police Officers		—		12,574		31,817		51,998		73,155
Tackling Alcohol Fuelled Violence - Safe Night Precincts		2,500		5,000		5,000		5,000		2,500
GPS Tracking of Defendants on Bail		749		2,572		—		—		—
Additional QLiTE Devices		—		1,950		1,970		2,000		—
Portfolio Total		8,715		37,791		54,945		75,529		92,565
Queensland Treasury
Extension to First Home Owners’ Grant		19,600		32,000		—		—		—
Move Up In The World - Attracting Business Investment and Migration to Queensland		1,000		—		—		—		—
Portfolio Total		20,600		32,000		—		—		—
Total impact on Expense up to and including MYFER		218,951		470,295		745,254		669,944		290,877

15

Budget Measures 2018-19

	2017-18			2018-19			2019-20			2020-21			2021-22
Expense measures since 2017-18 MYFER	$‘000			$‘000			$‘000			$‘000			$‘000
Department of Aboriginal and Torres Strait Islander Partnerships
Cape York Splash Parks2		(4,000	)		4,000			—			—			—
Work History Research and Legal Services		—			3,301			301			110			—
Kowanyama Men’s Shed and Women’s Meeting Place		—			1,476			388			403			416
Kupai Omasker2		(800	)		597			203			—			—
Aurukun Women’s Initiative		—			—			—			—			—
Portfolio Total		(4,800	)		9,374			892			513			416
Department of Agriculture and Fisheries
Panama Disease Tropical Race 4 Program2		—			2,058			—			—			—
Shark Control Program		—			316			457			548			731
Restoration of Waaje Fire Tower		—			300			200			—			—
Extending Existing Drought Relief Arrangements		—			—			—			—			—
Portfolio Total		—			2,674			657			548			731
Department of Child Safety, Youth and Women
Youth Justice - Youth Detention Capacity and Planning		216			10,384			—			—			—
Youth Justice - Reducing Remand of Children and Young People in Custody		—			2,469			6,471			2,712			—
Supporting Children and Young People with Complex and Challenging Behaviours		20,000			20,000			—			—			—
Replacement of Integrated Client Management System		—			4,300			—			—			—
Office of the Child and Family Official Solicitor		—			3,320			—			—			—
Domestic and Family Violence Response - Specialist Domestic and Family Violence Courts					274			463			463			463
National Redress Scheme		—			—			—			—			—
Portfolio Total		20,216			40,747			6,934			3,175			463
Department of Communities, Disability Services and Seniors
Community Nursing and Allied Health Services		—			10,000			—			—			—
Tackling Alcohol Fuelled Violence Program - Safe Night Precinct Support Services		—			3,324			—			—			—
National Disability Insurance Scheme - National Clearance Database		—			917			180			136
Portfolio Total		—			14,241			180			136			—
Department of Education
Non-State School Capital Grants		—			45,000			45,000			45,000			—
Implementation of the Labour Hire Licensing Act 20172		—			—			—			—			2,357
Youth Justice - Assessment of Education Needs at Brisbane and Townsville Courts		—			—			—			—			—
Instrumental Music Program2		—			(2,019	)		(1,976	)		(2,159	)		5,610
Portfolio Total		—			42,981			43,024			42,841			7,967

16

Budget Measures 2018-19

	2017-18			2018-19		2019-20		2020-21		2021-22
Expense measures since 2017-18 MYFER	$‘000			$‘000		$‘000		$‘000		$‘000
Department of Employment, Small Business and Training
Back to Work - South East Queensland		—			15,100		10,250		6,150		—
Creating your Future Job		—			1,000		—		—		—
Enhancing how Government and Small Business Participate in Regulatory Reform		—			350		250		250		250
Portfolio Total		—			16,450		10,500		6,400		250
Department of Environment and Science
Waste Disposal Levy - Advance Payments to Councils		—			31,975		—		—		—
Waste Disposal Levy - Implementation and operational costs		200			15,000		6,180		6,365		6,556
State Library of Queensland - First 5 Forever Reading Program		—			5,000		5,000		5,000		5,000
Great Barrier Reef - Joint Field Management Program Intergovernmental Agreement Commitment		—			4,058		3,900		7,650		10,400
Great Barrier Reef - Water Quality		—			2,591		5,889		3,200		2,160
Queensland Performing Arts Centre		—			2,000		2,000		2,000		2,000
Vegetation Management - Enhanced Statewide Landcover and Trees Study		—			1,998		1,985		—		—
Continuation of Compliance and Rehabilitation Action		—			1,859		—		—		—
Climate Change - Implementing Queensland’s Response2		—			1,300		1,500		1,500		1,300
EcoBiz Program for Small to Medium Enterprises - Continued Delivery		—			943		971		1,000		1,031
Springvale Station Nature Refuge Management		—			509		717		746		756
Queensland Conservation Council - Increased Support		—			350		350		350		350
Queensland Art Gallery/ Gallery of Modern Art Exhibitions		—			—		—		3,000		3,000
Rockhampton Art Gallery		—			—		—		—		—
Portfolio Total		200			67,583		28,492		30,811		32,553
Department of Housing and Public Works
Responsive Government - Service Transformation		—			8,820		—		—		—
Embedding Procurement Reform		—			535		535		535		535
Thomas Dixon Centre Refurbishment		—			500		—		—		—
Local Sporting Infrastructure		—			—		—		—		—
Youth Justice - Youth and Family Head Leases		—			—		—		—		—
Portfolio Total		—			9,855		535		535		535
Department of Innovation, Tourism Industry Development and the Commonwealth Games
Continuation of the Funding Guarantee for Tourism and Events Queensland		—			—		—		—		46,875
Advance Queensland Increase		18,000			8,000		8,000		8,000		8,000
Growing Tourism, Growing Tourism Jobs2		—			2,500		2,500		2,500		2,500
Australian Workers Heritage Centre		500			1,700		—		—		—
Major Events Funding2		(1,335	)		400		250		—		—
Portfolio Total		17,165			12,600		10,750		10,500		57,375
Department of Justice and Attorney-General
Blue Card Services Efficiency Savings		—			5,000		—		—		—
Blue Card Services ‘No Card, No Start’		—			3,050		2,775		1,420
Queensland Courts and Justice Services		—			10,000		—		—		—

17

Budget Measures 2018-19

	2017-18			2018-19		2019-20		2020-21			2021-22
Expense measures since 2017-18 MYFER	$‘000			$‘000		$‘000		$‘000			$‘000
Victim Assist Queensland		—			5,700		5,700		—			—
Gambling Help Service System		—			5,277		5,295		5,314			5,333
Office of the Director of Public Prosecutions		—			5,000		—		—			—
Director of Child Protection Litigation		—			4,630		—		—			—
Crime and Corruption Commission - Digital Investigative and Information Security Services		—			3,374		3,593		3,792			3,897
Recording and Transcription Services		—			2,881		6,494		4,646			—
Office of the Public Guardian and Queensland Civil and Administrative Tribunal		—			2,500		—		—			—
Tackling Alcohol Fuelled Violence Program - Safe Night Precincts		—			2,042		—		—			—
Queensland Sentencing Advisory Council		—			1,851		1,638		1,677			1,717
Crime and Corruption Commission - Investigative Capability		—			1,792		1,832		1,872			1,913
Specialist Courts - Murri Court and Court Link		—			1,703		2,408		2,482			2,527
Aurukun Restorative Justice Program		—			910		—		—			—
Office of the Information Commissioner		—			598		613		628			644
Queensland Family and Child Commission		—			396		—		—			—
Domestic and Family Violence Response - Specialist Domestic and Family		—			—		—		—			—
Violence Courts		—			264		459		463			468
Coroners Court of Queensland		—			258		—		—			—
Anti-Discrimination Commission Queensland - Human Rights Act for Queensland		—			244		834		604			616
Portfolio Total		—			57,470		31,641		22,898			17,115
Department of Local Government, Racing and Multicultural Affairs
Torres Shire Water Treatment Infrastructure Upgrade		—			4,500		7,500		—			—
Building Integrity and Sustainability in Local Government		—			3,967		3,360		3,382			3,416
Torres Strait and Palm Island Car and Waste Metal Removal		—			2,500		2,500		—			—
Implementing More Effective Funding Grants to Local Government		—			1,700		500		500			500
Kowanyama Aboriginal Shire Council Economic Growth and Jobs Initiative		—			1,100		—		—			—
State Government Financial Aid - Indexation		—			759		1,536		2,334			3,241
Show Society Grants Program2		(50	)		53		13		(16	)		—
Support for Refugees and Asylum Seekers2		—			—		—		—			—
Torres Strait Islands Seawalls and Coastal Inundation Mitigation Upgrades		—			—		—		—			—
Portfolio Total		(50	)		14,579		15,409		6,200			7,157
Department of Natural Resources, Mines and Energy
Coal Seam Gas Compliance Unit		—			3,369		—		—			—
Queensland Water Regional Alliance Program		—			1,050		1,050		1,050			1,050
Extending Existing Drought Relief Arrangements2		—			—		—		—			—
Linc Energy Mine Site		—			—		—		—			—
Portfolio Total		—			4,419		1,050		1,050			1,050
Department of State Development, Manufacturing, Infrastructure and Planning
Resource Recovery Industry Development Program		—			30,000		50,000		20,000			—
Queensland Reconstruction Authority Disaster Resilience Fund		—			9,500		9,500		9,500			9,500
Advancing Queensland’s Biofuture (Biofutures Acceleration Program II)		—			5,000		—		—			—

18

Budget Measures 2018-19

	2017-18			2018-19			2019-20		2020-21		2021-22
Expense measures since 2017-18 MYFER	$‘000			$‘000			$‘000		$‘000		$‘000
Queensland Reconstruction Authority Whitsunday Regional Council Administration Building		—			4,500			500		—		—
Queensland Reconstruction Authority Beach Restoration and Mitigation		—			3,562			1,000		—		—
Queensland Reconstruction Authority Disaster Recovery Services Donation Management		—			400			400		400		—
Gasfields Commission Queensland Implementation of Government recommendations arising from the Scott Review		—			—			—		—		—
Hydrogen Industry and Energy Opportunity		—			—			—		—		—
Portfolio Total		—			52,962			61,400		29,900		9,500
Department of the Premier and Cabinet
Screen Production Facility		—			3,829			2,724		2,724		2,724
Continuation of the Events Sponsorship Fund		—			3,500			3,500		3,500		—
Ministerial Offices		—			2,769			1,250		3,299		3,299
Regional Office Initiative		—			709			941		964		—
Supporting Veterans - Grants		—			500			500		500		—
Portfolio Total		—			11,307			8,915		10,987		6,023
Department of Transport and Main Roads
Rail Transport Services		—			225,985			221,828		291,514		364,670
Derelict Vessels Enforcement Program		—			5,000			5,000		5,000		5,000
National Marine Safety Regulator		—			4,860			3,830		2,840		1,620
Camera Detected Offence Program		—			2,689			4,967		4,831		5,385
New Public Transport Ticketing System		—			2,000			2,500		3,500		—
School Transport Infrastructure Program		—			2,000			5,000		6,500		6,500
Passenger Transport Infrastructure Investment Program (PTIIP) supplement		—			1,000			5,500		6,500		7,000
Beams Road Overpass Investigation 2		(380	)		150			230		—		—
Bus Driver Safety		—			—			—		—		—
Mooloolah River Interchange		—			—			—		—		—
Transport Infrastructure Development Scheme		—			—			—		—		—
Queensland Walking Strategy2		(400	)		(200	)		—		600		—
Eastern Transitway2		(1,800	)		(10,200	)		—		12,000		—
Portfolio Total		(2,580	)		233,284			248,855		333,285		390,175
Electoral Commission of Queensland
Prohibited Donor Scheme		—			526			311		318		324
Portfolio Total		—			526			311		318		324
Legislative Assembly of Queensland
2017 Electoral Boundary Redistribution and Election2		3,092			2,292			2,292		2,292		2,292
Portfolio Total		3,092			2,292			2,292		2,292		2,292
Public Safety Business Agency
Queensland Government Air Aircraft Maintenance and Compliance		—			2,899			—		—		—
Public Safety Regional Radio Communications		—			—			—		—		—
Portfolio Total		—			2,899			—		—		—

19

Budget Measures 2018-19

	2017-18		2018-19		2019-20		2020-21		2021-22
Expense measures since 2017-18 MYFER	$‘000		$‘000		$‘000		$‘000		$‘000
Public Service Commission
Integrity Commissioner’s Expanded Advisory and Public Awareness Role		—		331		350		366		382
Portfolio Total		—		331		350		366		382
Queensland Corrective Services
Probation and Parole Service Funding		—		6,500		2,900		—		—
Correctional Centre Health Services		—		2,862		—		—		—
Expansion of the Bail Support Program		—		1,222		1,253		1,456
Tackling Alcohol Fuelled Violence Program - Safe Night Precinct Support Services		—		1,154		—		—		—
Aurukun Prisoner Reintegration Program		—		512		—		—		—
Domestic and Family Violence Response - Specialist Domestic and Family Violence Courts		—		443		453		464		416
Portfolio Total		—		12,693		4,606		1,920		416
Queensland Fire and Emergency Services
State Emergency Service on-boarding to the Government Wireless Network in South East Queensland		—		3,000		4,000		1,350		950
Portfolio Total		—		3,000		4,000		1,350		950
Queensland Health
Operational Growth Funding		—		152,722		62,916		11,651		327,182
Sunshine Coast University Hospital		—		25,481		28,544		29,184		30,022
Community Helicopter Providers		—		7,612		—		—		—
Correctional Centre Health Services		—		5,090		—		—		—
Youth Justice - Specialist Mental Health Youth Forensic Assessment		—		—		—		—		—
Portfolio Total		—		190,905		91,460		40,835		357,204
Queensland Police Service
Camera Detected Offence Program		—		794		1,240		1,690		2,247
National Disability Insurance Scheme - National Clearance Database		—		400		—		—		—
Domestic and Family Violence Response - Specialist Domestic and Family Violence Courts		—		263		878		899		919
Portfolio Total		—		1,457		2,118		2,589		3,166
Queensland Treasury
Expansion of the Jobs and Regional Growth Fund		—		20,000		—		—		—
Camera Detected Offence Program		—		1,703		2,406		2,622		2,843
Portfolio Total		—		21,703		2,406		2,622		2,843
Total impact on Expense since 2017-18 MYFER		33,243		826,332		576,777		552,071		898,887
Total impact on Expense since the 2017-18 Budget		252,194		1,296,627		1,322,031		1,222,015		1,189,764

1. Further funding for this measure can be found in the Post Mid-Year Fiscal and Economic Review section of this table.

2. Further funding for this measure can be found in the Mid-Year Fiscal and Economic Review section of this table.

20

Budget Measures 2018-19

Table 1.3: Capital measures since the 2017-18 Budget

Capital measures up to and including MYFER	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Department of Communities, Disability Services and Seniors
Supporting Veterans - The Oasis Townsville Defence Hub1		2,600		—		—		—		—
Portfolio Total		2,600		—		—		—		—
Department of Education
Building Future Schools Fund1		—		62,420		131,980		22,080		51,520
Renewing our Schools1		—		58,750		58,750		58,750		58,750
Advancing Clean Energy Schools		2,000		47,000		48,000		—		—
School Renewal		—		10,000		15,600		—		—
Implementation of the Labour Hire Licensing Act 2017		716		—		—		—		—
Yarrabilba State School Integrated Children’s Services Community Hub		3,600		—		—		—		—
Portfolio Total		6,316		178,170		254,330		80,830		110,270
Department of Employment, Small Business and Training
Advancing Our Training Infrastructure		—		30,000		30,000		25,000		—
Portfolio Total		—		30,000		30,000		25,000		—
Department of Environment and Science
Government Action on North Stradbroke Island (Minjerribah)		1,690		113		—		—		—
Protected Area Estate - Acquisition		—		—		—		—		—
Protected Area Estate - Expansion		6,200		—		—		—		—
Portfolio Total		7,890		113		—		—		—
Department of Innovation, Tourism Industry Development and the Commonwealth Games
Great Keppel Island Recovery Package		5,000		10,000		10,000		—		—
Portfolio Total		5,000		10,000		10,000		—		—
Department of State Development, Manufacturing, Infrastructure and Planning
Growth Area and Regional Infrastructure Investment Fund		—		—		—		—		—
Portfolio Total		—		—		—		—		—
Department of Transport and Main Roads
M1 Pacific Motorway - Varsity Lakes to Tugun1		—		2,000		6,000		22,000		72,000
Marine Infrastructure Fund1		—		14,900		15,100		—		—
Smithfield Bypass		4,222		13,982		25,330		25,466		—
Northern Transitway1		6,100		10,000		29,900		7,000		—
Roads Renewal Fund1		—		10,000		10,000		15,000		—
Stafford and South Pine Road Intersection Upgrade1		—		10,000		10,000		6,000		—
Centenary Motorway Upgrade		2,000		5,000		20,000		21,000		—
Mt Lindesay Highway (Johanna St intersection)1		—		5,000		10,000		5,000		—
Station Upgrades including Park’n’Ride facilities1		550		3,000		8,000		13,950		—
Future Proofing The Bruce		—		—		30,500		98,000		125,000

21

Budget Measures 2018-19

Capital measures up to and including MYFER	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Gold Coast Train Stations		—		—		—		25,000		50,000
Mount Isa to Townsville Rail Line		—		—		—		10,000		40,000
Portfolio Total		12,872		73,882		164,830		248,416		287,000
Legislative Assembly of Queensland
2017 Electoral Boundary Redistribution and Election1		775		—		—		—		—
Parliamentary Annexe Lift Upgrade Program		1,205		—		—		—		—
Portfolio Total		1,980		—		—		—		—
Queensland Health
Building Better Hospitals1		11,000		52,280		87,270		202,000		—
Rockhampton Drug Treatment and Rehabilitation Facility		1,500		2,600		5,400		—		—
Redland Hospital		1,730		—		—		—		—
Portfolio Total		14,230		54,880		92,670		202,000		—
Queensland Police Service
Police Officers		—		600		600		600		600
Increased Counter-Terrorism Capability		1,260		—		—		—		—
Portfolio Total		1,260		600		600		600		600
Total impact on Capital up to and including MYFER		52,148		347,645		552,430		556,846		397,870

22

Budget Measures 2018-19

Capital measures since 2017-18 MYFER	2017-18 $‘000		2018-19 $‘000			2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Department of Agriculture and Fisheries
Restoration of Jimna Fire Tower		—		1,000			500		—		—
Portfolio Total		—		1,000			500		—		—
Department of Child Safety, Youth and Women
Information and Communication Technology (ICT) Infrastructure Investment		—		2,800			—		—		—
Portfolio Total		—		2,800			—		—		—
Department of Communities, Disability Services and Seniors
Supporting Veterans - The Oasis Townsville Defence Hub2		—		—			—		—		—
Portfolio Total		—		—			—		—		—
Department of Education
Building Future Schools Fund2		—		(32,420	)		32,420		—		—
Renewing our Schools2		—		(43,750	)		11,250		11,250		21,250
Portfolio Total		—		(76,170	)		43,670		11,250		21,250
Department of Environment and Science
New Performing Arts Venue at the Queensland Performing Arts Centre		—		5,000			50,000		50,000		20,000
Queensland Cultural Centre - Critical Infrastructure Asset Renewal		—		4,928			3,522		—		—
Queensland Cultural Centre - Electricity Supplementation and Future Energy Efficiency		—		1,800			3,150		4,050		—
Critical Infrastructure Asset Renewal and Equipment Replacement at the Queensland Performing Arts Centre		—		1,500			1,800		—		—
National Parks Harsh Environment Fire Vehicles		—		200			—		—		—
Portfolio Total		—		13,428			58,472		54,050		20,000
Department of Housing and Public Works
Thomas Dixon Centre Refurbishment		—		9,500			4,000		—		—
Portfolio Total		—		9,500			4,000		—		—
Department of Justice and Attorney-General
Blue Card Services ‘No Card, No Start’		—		2,520			709		—		—
Crime and Corruption Commission - Digital Investigative and Information Security Services		—		1,295			354		—		—
Anti-Discrimination Commission Queensland - Human Rights Act for Queensland		—		100			100		—		—
Portfolio Total		—		3,915			1,163		—		—
Department of Local Government, Racing and Multicultural Affairs
Implementing More Effective Funding Grants to Local Government		—		1,300			—		—		—
Northern Peninsula Area Water Supply System - Replacement of Asbestos Cement Pipelines		—		1,000			1,000		1,000		1,000
Portfolio Total		—		2,300			1,000		1,000		1,000

23

Budget Measures 2018-19

Capital measures since 2017-18 MYFER	2017-18 $‘000			2018-19 $‘000			2019-20 $‘000			2020-21 $‘000			2021-22 $‘000
Department of Natural Resources, Mines and Energy
Rookwood Weir		—			66,000			83,000			126,000			77,000
Glen Niven Dam		—			2,500			—			—			—
Linc Energy Mine Site		—			—			—			—			—
Portfolio Total		—			68,500			83,000			126,000			77,000
Department of Transport and Main Roads
M1 Pacific Motorway - Eight Mile Plains to Daisy Hill		—			17,000			28,500			70,000			201,000
M1 Pacific Motorway - Varsity Lakes to Tugun2		—			3,000			9,000			48,000			148,000
New Public Transport Ticketing System		—			89,198			104,427			87,891			89,544
Beerburrum to Nambour Rail		—			14,407			59,470			143,963			142,951
Western Roads Upgrade Supplement		—			5,000			—			—			—
Station Upgrades including Park’n’Ride facilities2		(150	)		3,600			(3,695	)		245			—
M1 Action Plan - Oxenford (Exit 57) Interchange Upgrade		—			3,000			12,000			10,000			—
Camera Detected Offence Program		—			2,000			2,350			67,350			55,350
Gold Coast Seaway Sand Bypass System - Jetty Deck Upgrade		—			1,500			1,850			—			—
Construction of Petrie Roundabout Project		—						10,500			12,000			—
Mt Lindesay Highway (Johanna St intersection)2		200			(3,200	)		2,000			1,000			—
Northern Transitway2		(5,900	)		(4,200	)		(19,900	)		23,000			7,000
Stafford and South Pine Road Intersection Upgrade2		250			(7,750	)		5,000			2,500			—
Roads Renewal Fund2		—			(9,000	)		(1,000	)		(5,000	)		15,000
Marine Infrastructure Fund2		—			(10,300	)		10,300			—			—
Portfolio Total		(5,600	)		104,255			220,802			460,949			658,845
Legislative Assembly of Queensland
Parliament House Fire Protection System		—			3,994			—			—			—
2017 Electoral Boundary Redistribution and Election2		—			1,000			—			—			—
Infrastructure and Accommodation Critical Works Program		200			1,000			400			—			—
Portfolio Total		200			5,994			400			—			—
Public Safety Business Agency
Queensland Government Air Aircraft Maintenance and Compliance		—			3,728			—			—			—
Portfolio Total		—			3,728			—			—			—
Queensland Corrective Services
Capricornia Correctional Centre		—			22,000			19,000			—			—
Minor Capital Works		—			5,500			5,000			—			—
Portfolio Total		—			27,500			24,000			—			—
Queensland Fire and Emergency Services
Queensland Fire and Emergency Services Facility - Maleny		—			1,050			1,000			1,450			(500	)
Queensland Fire and Emergency Services Facilities - Yarrabilba and surrounds		—			1,000			1,000			3,000			—
Portfolio Total		—			2,050			2,000			4,450			(500	)

24

Budget Measures 2018-19

Capital measures since 2017-18 MYFER	2017-18 $‘000			2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Queensland Health
Building Better Hospitals2		—			—		—		—		185,700
Health Technology Equipment Replacement Program		—			50,000		—		—		—
Redcliffe Hospital Carpark		—			7,508		24,098		5,174		—
Youth Justice - Specialist Mental Health Youth Forensic Assessment		—			—		—		—		—
Portfolio Total		—			57,508		24,098		5,174		185,700
Queensland Police Service
Camera Detected Offence Program		—			950		2,150		1,150		1,900
National Disability Insurance Scheme - National Clearance Database		—			100		—		—		—
Portfolio Total		—			1,050		2,150		1,150		1,900
Queensland Treasury
Business Development Fund		—			20,000		20,000		—		—
Portfolio Total		—			20,000		20,000		—		—
Total impact on Capital since 2017-18 MYFER		(5,400	)		247,358		485,255		664,023		965,195
Total impact on Capital since the 2017-18 Budget		46,748			595,003		1,037,685		1,220,869		1,363,065
Less Australian Government funding					34,000		101,500		173,000		222,500
Net of Measures funded by Australian Government		46,748			561,003		936,185		1,047,869		1,140,565

1. Further funding for this measure can be found in the Post Mid-Year Fiscal and Economic Review section of this table.

2. Further funding for this measure can be found in the Mid-Year Fiscal and Economic Review section of this table.

25

Budget Measures 2018-19

Table 1.4: Revenue measures since the 2017-18 Budget

Revenue measures up to and including MYFER	2017-18 $‘000			2018-19 $‘000			2019-20 $‘000			2020-21 $‘000			2021-22 $‘000
Department of Education
Implementation of the Labour Hire Licensing Act 20171		3,071			3,071			3,071			3,071			—
Portfolio Total		3,071			3,071			3,071			3,071			—
Department of Transport and Main Roads
Reduced Registration for Historic Motorcycles		—			(100	)		(100	)		(100	)		(100	)
Transport Concessions for Veterans		(228	)		(488	)		(527	)		(567	)		(608	)
Portfolio Total		(228	)		(588	)		(627	)		(667	)		(708	)
Queensland Treasury
Point of Consumption Betting Tax1		—			30,000			30,000			30,000			30,000
Land Tax increase to rate on holdings above $10 million by 0.5 percentage points		—			71,000			76,000			80,000			84,400
Additional Foreign Acquirer Duty increase to 7%		—			33,000			33,000			33,000			33,000
Premium Motor Vehicle Duty		—			24,020			25,250			26,490			27,870
Portfolio Total		—			158,020			164,250			169,490			175,270
Total impact on Revenue up to and including MYFER		2,843			160,503			166,694			171,894			174,562

26

Budget Measures 2018-19

Revenue measures since 2017-18 MYFER	2017-18 $‘000		2018-19 $‘000			2019-20 $‘000			2020-21 $‘000			2021-22 $‘000
Department of Agriculture and Fisheries
Veterinary Surgeons Regulation 2016		—		201			208			215			223
Queensland Racing Integrity Commission (QRIC) - Reducing Red Tape through a New Licence Model		—		(125	)		(125	)		(125	)		(122	)
Portfolio Total		—		76			83			90			101
Department of Education
Homestay Regional Fees for International Students Program and Study Tours		—		311			328			349			370
Implementation of the Labour Hire Licensing Act 20172		—											3,071
Portfolio Total		—		311			328			349			3,441
Department of Environment and Science
Waste Disposal Levy		—		100,724			405,657			408,004			407,831
Portfolio Total		—		100,724			405,657			408,004			407,831
Department of Natural Resources, Mines and Energy
Extending existing drought relief arrangements		—		—			—			—			—
Portfolio Total		—		—			—			—			—
Department of Transport and Main Roads
Hazard Perception Test Fee		—		—			1,330			1,369			1,408
Learner Licence Discount for Photo Identification Card (PIC) Holders		—		(26	)		(66	)		(141	)		(149	)
Heavy Vehicle Plate Fee		—		(147	)		(152	)		(157	)		(162	)
Portfolio Total		—		(173	)		1,112			1,071			1,097
Queensland Treasury
Point of Consumption Betting Tax2		—		40,950			66,323			68,501			71,184
Payroll Tax Apprentice and Trainee Rebate		—		(26,000	)		—			—			—
Portfolio Total		—		14,950			66,323			68,501			71,184
Total impact on Revenue since 2017-18 MYFER		—		115,888			473,503			478,015			483,654
Total impact on Revenue since the 2017-18 Budget		2,843		276,391			640,197			649,909			658,216

1. Further funding for this measure can be found in the Post Mid-Year Fiscal and Economic Review section of this table.

2. Further funding for this measure can be found in the Mid-Year Fiscal and Economic Review section of this table.

27

Budget Measures 2018-19

2 Expense Measures

Introduction

The following tables present the relevant portfolio expense measures relating to decisions taken since the 2017-18 Budget. This does not represent the full amount of additional funding provided to agencies since the 2017-18 Budget. For further explanation, refer to Explanation of Scope and Terms in Chapter 1.

28

Budget Measures 2018-19

Department of Aboriginal and Torres Strait Islander Partnerships

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Cape York Splash Parks		—		4,000		—		—		—

Delivering on our election commitments, the Government is providing additional funding of $4 million in 2018-19 to build splash parks at Pormpuraaw, Napranum and Mapoon.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Work History Research and Legal Services		—		3,301		301		110		—

The Government is providing additional funding of $3.7 million over three years to support work history research and legal services.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Kowanyama Men’s Shed and Women’s Meeting Place		—		1,476		388		403		416

The Government is providing additional funding of $2.7 million over four years and $416,000 per annum ongoing to establish a Men’s Shed and a Women’s Meeting Place for the Kowanyama community.

29

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Kupai Omasker		200		597		203		—		—

Delivering on our election commitments, the Government has provided additional funding of $1 million over three years to engage with Queensland’s Torres Strait Islander community on how traditional Torres Strait Islander child rearing practices can be recognised in law. The consultation process will include the engagement of eminent persons.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Aurukun Women’s Initiative		—		—		—		—		—

The Government is continuing to support the Aurukun community with the department internally funding $195,000 in 2018-19 for the Aurukun Women’s Initiative.

This forms part of the Government’s overall package of $1.6 million to continue the Aurukun Four Point Plan in 2018-19 to address safety and support the community. Further funding can be found in the Department of Justice and Attorney-General and Queensland Corrective Service sections of this chapter.

30

Budget Measures 2018-19

Department of Agriculture and Fisheries

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Driving Queensland Agriculture and Rural Jobs Growth		—		7,400		7,400		4,400		—

Delivering on our election commitments, the Government is providing additional funding of $19.2 million over three years to support Queensland agriculture and rural jobs. This includes additional funding for the Rural Jobs Initiative ($3 million), Rural Economic Development Grants Scheme ($10 million), Queensland Feral Pest Initiative ($5 million), Pulse Storage Research, Development and Extension ($1 million) and a study into stamp duty on agricultural insurance products ($200,000).

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
10 Year Plan for the National Red Imported Fire Ant Eradication Program in South East Queensland		2,358		2,453		2,551		2,651		2,754

Funding of $28.2 million over 10 years from 2017-18 for the National Red Imported Fire Ant Eradication Program (NRIFAEP) has been allocated to the department. This funding had been held centrally subject to finalisation of the National Cost Sharing Agreement, which has now occurred.

Funding of $15.1 million over 10 years has also been internally reprioritised by the department, bringing Queensland’s total contribution to the NRIFAEP to $43.3 million over 10 years.

The National Cost Sharing Agreement is a total of $411.4 million over 10 years, with contributions from the Australian Government and other States and Territories.

31

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Panama Disease Tropical Race 4 Program		2,751		2,281		265		—		—

The Government has provided increased funding of $5.3 million over three years to support the continuation of the Panama Disease Tropical Race 4 Program following detection of the disease in Queensland and for a feral pig control initiative to further contain the disease. Further funding can be found in the Department of Environment and Science section of this chapter.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Shark Control Program		—		316		457		548		731

The Government is providing increased funding of $2.1 million over four years and $731,000 per annum ongoing to help meet growing costs of the Shark Control Program which protects swimmers on Queensland beaches.

This measure forms part of the larger departmental Shark Control Program, with total funding of $16.1 million over four years and $4.2 million per annum ongoing.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Restoration of Waaje Fire Tower		—		300		200		—		—

The Government is providing additional funding of $500,000 over two years to restore the Waaje Fire Tower that is listed on the Queensland Heritage Register.

32

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Supporting Queensland`s Dairy Producers		360		260		50		—		—

The Government has provided additional funding of $670,000 over three years to the Queensland Dairy Organisation to assist producers and small local milk processors to improve their marketing and labelling campaigns, and to facilitate greater producer participation in the Queensland Dairy Accounting Scheme which provides insights to dairy farmers on profitability, solvency and efficiency.

This is part of a total funding package of $960,000 for marketing strategies to help consumers make better-informed decisions when they buy milk. Further funding can be found in the Department of Employment, Small Business and Training section of this chapter.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Bundaberg Fruit Fly Trial		400		—		—		—		—

Delivering on our election commitments, the Government has provided additional funding of $400,000 in 2017-18 to help eradicate fruit fly from the Bundaberg region.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Extending Existing Drought Relief Arrangements		—		—		—		—		—

The Government is providing increased funding of up to $20 million in 2018-19, held centrally, for the continuation of the Drought Relief Assistance Scheme. This funding provides freight subsidies and emergency water infrastructure rebates to support producers and communities that have been affected by drought across the State.

The Drought Assistance Package is a total of up to $34.6 million in 2018-19 to support drought affected communities across the State. Further details can be found in the Department of Natural Resources, Mines and Energy section of this chapter and Chapter 4 Revenue Measures.

33

Budget Measures 2018-19

	2017-18 $���000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Paws and Claws Capital Grant		—		—		—		—		—

Funding of $300,000 has been internally reprioritised in 2017-18 by the department to Paws and Claws as a contribution towards the cost of a new animal refuge and boarding facility.

34

Budget Measures 2018-19

Department of Child Safety, Youth and Women

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Youth Justice - Youth Detention Capacity and Planning		216		10,384		—		—		—

The Government has provided additional funding of $10.6 million over two years for additional frontline and frontline support positions to enhance operations of Queensland’s two youth detention centres, and the development of a strategic business case to plan for future detention centre capacity.

This forms part of the Government’s total funding of $40.7 million over four years ($22.3 million new funding and $18.4 million reprioritised funding) for youth justice support measures. Further details can be found in this section, the Department of Education, Department of Housing and Public Works and Queensland Health sections of this chapter and the Queensland Health section of Chapter 3 Capital Measures.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Youth Justice - Reducing Remand of Children and Young People in Custody		—		2,469		6,471		2,712		—

The Government is providing increased funding of $11.7 million over three years and $11.3 million over four years has been internally reprioritised by the department for services and initiatives to reduce remand of children and young people in custody while maintaining community safety, including extension of bail support and advocacy to support young people to meet their bail conditions, continuation of restorative justice and court ordered conferencing.

This forms part of the Government’s total funding of $40.7 million over four years ($22.3 million new funding and $18.4 million reprioritised funding) for youth justice support measures. Further details can be found in this section, the Department of Education, Department of Housing and Public Works and Queensland Health sections of this chapter and the Queensland Health section of Chapter 3 Capital Measures.

35

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Supporting Children and Young People with Complex and Challenging Behaviours		20,000		20,000		—		—		—

The Government has provided increased funding of $40 million over two years to support children and young people in care with complex and challenging behaviours.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Replacement of Integrated Client Management System		—		4,300		—		—		—

The Government is providing increased funding of $4.3 million in 2018-19 to continue developing a contemporary and customer-centric client information and case management solution.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Office of the Child and Family Official Solicitor		—		3,320		—		—		—

The Government is providing increased funding of $3.3 million in 2018-19 for additional staff in the Office of the Child and Family Official Solicitor to provide early, independent legal advice to child safety workers about child protection matters, and work collaboratively with staff in service centres and the independent Director of Child Protection Litigation to manage child protection order applications and proceedings.

Details of funding for the Director of Child Protection Litigation can be found in the Department of Justice and Attorney-General section of this chapter.

36

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Transition to Success		—		2,500		—		—		—

The Government is providing increased funding of $2.5 million in 2018-19 to continue the Transition to Success program, aimed at reducing recidivism and increasing participation in education and vocational activities.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Domestic and Family Violence Response - Specialist Domestic and Family Violence Courts		—		274		463		463		463

The Government is providing increased funding of $1.7 million over four years and $463,000 per annum ongoing to support the expansion of the Townsville Specialist Domestic and Family Violence (DFV) Court (including circuit courts in Mount Isa and Palm Island) to include criminal DFV matters.

Total funding for the expansion of the Townsville Specialist DFV Court is $8.1 million over four years, and $2.3 million per annum ongoing. Further funding can be found in the Department of Justice and Attorney-General, Queensland Corrective Services and Queensland Police Service sections of this chapter.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
National Redress Scheme		—		—		—		—		—

The Government has provisioned approximately $500 million for redress payments to survivors of institutional child sexual abuse and to facilitate their access to counselling and psychological support as part of Queensland’s participation in the National Redress Scheme for Survivors of Institutional Child Sexual Abuse (National Redress Scheme). Participation in a National Redress Scheme was a key recommendation of the Royal Commission into Institutional Responses to Child Sexual Abuse.

The National Redress Scheme will also provide eligible applicants the option to receive a direct personal response from the institution responsible for providing the redress.

37

Budget Measures 2018-19

Department of Communities, Disability Services and Seniors

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Electricity Asset Ownership Dividend		100,000		100,000		—		—		—

The Queensland Government has provided additional funding of $200 million over two years to deliver electricity bill relief for Queensland households through a $50 electricity rebate in 2017-18 and 2018-19. This initiative is funded from the dividends of Queensland’s Government-owned corporations.

The Electricity Asset Ownership Dividend forms part of the $2 billion Affordable Energy Plan, aimed at ensuring electricity price rises for typical household and small business customers remain below inflation on average over the next two years.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Community Nursing and Allied Health Services		—		10,000		—		—		—

The Government is providing increased funding of $10 million in 2018-19 to maintain existing community nursing and allied health services for National Disability Insurance Scheme (NDIS) participants whose NDIS plans do not include these services.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Tackling Alcohol Fuelled Violence Program - Safe Night Precinct Support Services		—		3,324		—		—		—

The Government is providing increased funding of $3.3 million in 2018-19 to continue the delivery of Safe Night Precinct Support Services which provide early intervention to ensure people affected by excessive alcohol consumption receive necessary assistance and are not exposed to risk or harm as a result of their condition.

This forms part of the Government’s Tackling Alcohol Fuelled Violence Program. Further funding can be found in the Queensland Corrective Services, Queensland Police Service and Department of Justice and Attorney-General sections of this chapter.

38

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
National Disability Insurance Scheme - National Clearance Database		—		917		180		136		—

The Government is providing additional funding of $1.2 million over three years for Queensland’s contribution to the National Disability Insurance Scheme (NDIS) National Clearance Database. From 1 July 2019, this database will contain a register of cleared and excluded workers from all jurisdictions, reducing the potential for providers to employ workers who pose an unacceptable risk of harm to NDIS participants.

Total funding associated with the National Clearance Database is $1.7 million over three years. Further funding can be found in the Queensland Police Service section of this chapter and Chapter 3 Capital Measures.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Disability Advocates		—		750		4,693		4,047		—

Delivering on our election commitments, the Government is providing funding of $9.5 million over three years for disability advocacy support services, including additional funding of $750,000 in 2018-19 for the Queenslanders with Disability Network to provide peer-to-peer advocacy for people with disability who are yet to enter the National Disability Insurance Scheme (NDIS) and increased funding of $8.7 million over two years to 2020-21 to assist disability advocacy services after the State fully transitions to NDIS.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
School Breakfast Program		250		250		250		250		—

Delivering on our election commitments, the Government has provided increased funding of $1 million over four years to Foodbank Queensland to expand the School Breakfast Program to additional schools across the State.

39

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Supporting Veterans - Online Portal		—		100		100		—		—

Delivering on our election commitments, the Government is providing additional funding of $200,000 over two years for an online portal to assist ex-Australian Defence Force personnel to access information and support.

This forms part of the Government’s total funding package of $4.3 million for the Supporting Veterans initiative. Further funding can be found in the Department of the Premier and Cabinet section of this chapter, and in the Department of Communities, Disability Services and Seniors section of Chapter 3 Capital Measures.

40

Budget Measures 2018-19

Department of Education

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Non-State School Capital Grants		—		45,000		45,000		45,000		—

Delivering on our election commitments, the Government is providing additional funding of $135 million over three years in capital grants to the non-state schooling sector to support infrastructure to meet the needs of Queensland’s growing student population.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
New Senior Assessment and Tertiary Entrance Systems		3,046		7,752		6,166		2,156		2,156

The Government has provided additional funding of $21.3 million over five years and $2.2 million per annum ongoing to complete the redevelopment of the Queensland Curriculum and Assessment Authority’s information and communication technology infrastructure. This will support the new Queensland Certificate of Education which commences in 2019.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Implementation of the Labour Hire Licensing Act 2017		2,064		2,156		2,221		2,288		2,357

Delivering on our election commitments, the Government has provided additional funding of $11.1 million over five years and $2.4 million per annum ongoing to implement the Labour Hire Licensing Act. This addresses labour hire worker exploitation through a mandatory business licensing scheme covering labour hire providers operating in Queensland. The capital component of this measure can be found in Chapter 3 Capital Measures. The revenue component of this measure can be found in Chapter 4 Revenue Measures.

41

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Instrumental Music Program		—		1,091		2,914		4,801		5,610

Delivering on our election commitments, the Government is providing additional funding of $14.4 million over four years (including an allocation of $1.5 million for non-state schools through the basket nexus funding arrangements) for additional instrumental music teachers and musical instruments for schools as part of the World Class Education election commitment.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Youth Justice - Assessment of Education Needs at Brisbane and Townsville Courts		—		—		—		—		—

Funding of $1.5 million over three years from 2018-19 is being internally reprioritised by the department to support re-engagement of young people in the youth justice system with education and support services.

This forms part of the Government’s total funding of $40.7 million over four years ($22.3 million new funding and $18.4 million reprioritised funding) for youth justice support measures. Further details can be found in the Department of Child Safety, Youth and Women, Department of Housing and Public Works and Queensland Health sections of this chapter and the Queensland Health section of Chapter 3 Capital Measures.

42

Budget Measures 2018-19

Department of Employment, Small Business and Training

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Back to Work - Extension		20,000		45,000		45,000		45,000		—

Delivering on our election commitments, the Government has provided increased funding of $155 million over four years to extend the Back to Work regional program to continue to provide employer support payments to employers hiring eligible unemployed jobseekers in regional Queensland, with applications open until 30 June 2020.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Back to Work - South East Queensland		—		15,100		10,250		6,150		—

The Government is providing increased funding of $11 million to respond to high demand and support Back to Work in South East Queensland, so applications can continue to be accepted to 30 June 2018. Further, increased funding of $20.5 million over three years to continue Back to Work in areas of South East Queensland with significant labour market challenges, with applications open until 30 June 2020.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Back to Work - Mature Aged Worker Boost		5,000		—		—		—		—

Delivering on our election commitments, the Government has provided increased funding of $5 million in 2017-18 to introduce a Back to Work Mature Aged Worker Boost from 1 January 2018 until 30 June 2018 for mature-aged jobseekers aged 55 years and over. Under the Boost, employers who employ an eligible unemployed mature-aged jobseeker are eligible for payments of up to $20,000. Funding will also support delivery of the Government’s commitment to appoint a Mature Aged Ambassador and establish associated awards for employers.

43

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Skilling Queenslanders for Work		—		20,000		80,000		80,000		—

Delivering on our election commitments, the Government is providing increased funding of $180 million over three years to boost the Skilling Queenslanders for Work initiative to fund more apprenticeships and increase workforce participation through a range of targeted skills and training programs.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Creating your Future Job		—		1,000		—		—		—

The Government is providing additional funding of $1 million in 2018-19 for a trial program designed to deliver targeted skills and specialist business advice and mentoring support to Queenslanders who want to create their own future job.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Enhancing how Government and Small Business Participate in Regulatory Reform		—		350		250		250		250

The Government is providing additional funding of $1.1 million over four years for delivery of the Business Impact Statement commitment, including the establishment of the small business consultation panels.

44

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Supporting Queensland’s Dairy Producers		250		40		—		—		—

The Government has provided additional funding of $290,000 over two years to assist small processors and farmers to diversify their product range, and better develop their markets with improved branding and marketing.

This is part of a total funding package of $960,000 for marketing strategies to help consumers make better-informed decisions when they buy milk. Further funding can be found in the Department of Agriculture and Fisheries section of this chapter.

45

Budget Measures 2018-19

Department of Environment and Science

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Waste Disposal Levy - Advance Payments to Councils		—		31,975		—		—		—

The Government is providing additional funding of $32 million in 2018-19 for advance payments to councils to meet the cost of municipal household waste sent to landfill and to avoid any direct impact on households associated with the introduction of the Waste Disposal Levy in the first quarter of 2019. Future year payments will be based on actual levy costs incurred.

Waste levy revenue will also provide for waste industry programs and other environmental priorities of Government. Further details can be found in this section, the Department of Local Government, Racing and Multicultural Affairs and Department of State Development, Manufacturing, Infrastructure and Planning sections of this chapter and Chapter 4 Revenue Measures.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Waste Disposal Levy - Implementation and operational costs		200		15,000		6,180		6,365		6,556

The Government has provided additional funding of $34.3 million over five years and $6.6 million per annum ongoing for the implementation of the Waste Disposal Levy in the first quarter of 2019 and its ongoing operation.

Further details can be found in this section, the Department of Local Government, Racing and Multicultural Affairs and Department of State Development, Manufacturing, Infrastructure and Planning sections of this chapter and Chapter 4 Revenue Measures.

46

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
State Library of Queensland - First 5 Forever Reading Program		—		5,000		5,000		5,000		5,000

The Government is providing additional funding of $5 million per annum to continue the development of strong emergent literacy foundations and life-long learning capabilities for all Queensland children up to five years, by directly connecting parents and primary caregivers to a range of resources at public libraries across the State.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Great Barrier Reef - Joint Field Management Program Intergovernmental Agreement Commitment		—		4,058		3,900		7,650		10,400

The Government is providing increased funding of $26 million over four years and $10.4 million per annum ongoing for the Great Barrier Reef Joint Field Management Program to protect and maintain marine and island ecosystems in the Great Barrier Reef.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Great Barrier Reef - Water Quality		—		2,591		5,889		3,200		2,160

The Government is providing increased funding of $13.8 million over four years, including $10.1 million to support the cane, grazing and banana industries in Great Barrier Reef catchments to improve water quality.

47

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Queensland Performing Arts Centre		—		2,000		2,000		2,000		2,000

The Government is providing additional funding of $8 million over four years to support the Queensland Performing Arts Centre in extending its programming reach across the State, investing further in Aboriginal and Torres Strait Islander performing arts and developing a musical theatre incubator.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Vegetation Management - Enhanced Statewide Landcover and Trees Study		—		1,998		1,985		—		—

The Government is providing increased funding of $4 million over two years to establish a scientific program to support an enhanced Statewide Landcover and Trees Study (SLATS) to identify and report on the condition and extent of regrowth vegetation and inform habitat conservation.

The department will work in collaboration with the Department of Natural Resources, Mines and Energy to deliver the program.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Continuation of Compliance and Rehabilitation Action		—		1,859		—		—		—

The Government is providing increased funding of $1.9 million in 2018-19 to continue to manage allegations of serious environmental harm and to undertake further remediation of surface and groundwater impacted by by-products of Underground Coal Gasification.

48

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Queensland Cultural Centre - Electricity Supplementation and Future Energy Efficiency		1,744		1,800		—		—		—

The Government has provided additional funding of $3.5 million over two years to provide for electricity supplementation at the Queensland Cultural Centre, South Bank. The capital component of this measure can be found in Chapter 3 Capital Measures.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Climate Change - Implementing Queensland’s Response		—		1,300		1,500		1,500		1,300

The Government is providing increased funding of $5.6 million over four years to enhance and strengthen delivery of the Queensland Government endorsed Queensland Climate Change Response. Funding will enable continued development and implementation of the Government Adaptation Action Plan including the Queensland Climate Resilient Council program and the sectors and systems program, and support significant adaptation risk projects such as sea level rise in the Torres Strait and other island communities.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Government Action on North Stradbroke Island (Minjerribah)		1,352		1,280		1,350		1,350		1,350

The Government has provided increased funding of $6.7 million over five years and $1.4 million per annum ongoing to expand the protected area over North Stradbroke Island (Minjerribah) as part of joint management arrangements with traditional owners.

Further funding can be found in the Department of Natural Resources, Mines and Energy and Department of State Development, Manufacturing, Infrastructure and Planning sections of this chapter and Chapter 3 Capital Measures.

49

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
EcoBiz Program for Small to Medium Enterprises - Continued Delivery		—		943		971		1,000		1,031

The Government is providing increased funding of $3.9 million over four years to continue delivering the ecoBiz program that helps small to medium sized businesses identify and achieve financial savings and eco-efficiency across energy, water and waste.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
National Parks Harsh Environment Fire Vehicles		—		804		—		—		—

The Government is providing increased funding of $804,000 in 2018-19 towards the operation of vehicles in harsh environments in Queensland’s Protected Area Estate to ensure the continued safety of staff, property and the community. The capital component of this measure can be found in Chapter 3 Capital Measures.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Springvale Station Nature Refuge Management		—		509		717		746		756

The Government is providing increased funding of $2.7 million over four years to support the ongoing land management needs for Springvale Station Nature Refuge. This funding is critical to achieving conservation objectives for biodiversity values, including habitat for threatened species and a high diversity of terrestrial regional ecosystems.

50

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Queensland Conservation Council - Increased Support		—		350		350		350		350

The Government is providing increased funding of $1.8 million over five years from 2018-19 to support the Queensland Conservation Council and nine regional conservation councils meet ongoing operational expenses. This increase in funding will assist each recipient group to continue and improve the services they provide to their representative communities, as well as improve their ability to represent these communities on local environmental conservation issues.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Protected Area Estate		153		102		155		125		130

The Government has provided increased funding of $665,000 over five years and $130,000 per annum ongoing for operational management costs associated with additional property of high conservation value which is to be added to the Queensland Protected Area Estate. The capital component of this measure can be found in Chapter 3 Capital Measures.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Panama Disease Tropical Race 4 Program		100		100		100		—		—

The Government has provided increased funding of $300,000 over three years for the management of Panama disease. Further funding can be found in the Department of Agriculture and Fisheries section of this chapter.

51

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Container Refund Scheme		1,500		—		—		—		—

The Government has provided increased funding of $1.5 million in 2017-18 to assist in the establishment of collection point infrastructure across the State, as part of implementing the Container Refund Scheme.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Heritage Property - Urgent Remedial Conservation Works		—		—		—		—		—

The Government is providing additional funding of $6.1 million over three years, held centrally pending negotiations about future management, which includes $5.8 million in 2018-19 for urgent remedial conservation works to heritage property to ensure the protection and structural integrity of State heritage buildings.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Protected Area Estate - Acquisition		—		—		—		—		—

The Government is providing increased funding of $1.3 million over four years and $339,000 per annum ongoing, held centrally, to support critical infrastructure upgrades and maintenance costs associated with the proposed purchase of properties of high conservation value for inclusion in the Queensland Protected Area Estate. The capital component of this measure can be found in Chapter 3 Capital Measures.

52

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Queensland Art Gallery/Gallery of Modern Art Exhibitions		—		—		—		3,000		3,000

The Government will provide additional funding of $6 million over two years from 2020-21 to secure, promote, develop and deliver high profile, exclusive “blockbuster” and major exhibitions which are principal drivers of visitation and economic benefit.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Reef Island Decarbonisation		1,730		—		—		—		—

Delivering on our election commitments, the Government has provided additional funding of $1.7 million in 2017-18 to assist the Great Barrier Reef Islands to cut their emissions by developing business cases for solar, wind and gas generation.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Rockhampton Art Gallery		—		—		—		—		—

The Government is providing increased funding of $8 million over two years, held centrally, to the Rockhampton Regional Council for the construction of the new Rockhampton Art Gallery, subject to the confirmation of a $10 million contribution from the Australian Government. This brings total State funding for this measure to $10 million, following the provision of $2 million for initial planning in the 2017-18 Queensland Budget.

53

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Waste Investigation		846		—		—		—		—

The Government has provided increased funding of $846,000 in 2017-18 to fund a Waste Investigation by the Honourable Peter Lyons into the transportation of waste into Queensland from interstate sources.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Woodfordia Infrastructure Upgrade		1,000		—		—		—		—

Delivering on our election commitments, the Government has provided additional funding of $1 million in 2017-18 for an infrastructure upgrade of facilities at Woodfordia, the site of the Woodford Folk Festival. The department has internally reprioritised $1 million which brings total funding to $2 million.

54

Budget Measures 2018-19

Department of Housing and Public Works

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Responsive Government - Service Transformation		—		8,820		—		—		—

The Government is providing increased funding of $8.8 million in 2018-19 to continue to provide digital technology and service design capabilities to improve customer services, bringing total funding to $16.9 million.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Sports Grant Funding Boost		—		7,982		2,450		—		—

The Government is providing additional funding of $10.4 million over two years to support a number of community infrastructure development projects to increase the opportunity for Queenslanders to participate in sport and active recreation.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Underwood Sports Park		4,110		5,000		—		—		—

Delivering on our election commitments, the Government has provided additional funding of $9.1 million over two years as part of a comprehensive redevelopment of the Underwood Park sports precinct.

55

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Safe, secure sporting and entertainment facilities		5,800		2,500		—		—		—

The Government has provided additional funding of $8.3 million over two years to assist with the security upgrades to Stadiums Queensland venues throughout Queensland. The security measures will identify security-related improvements and enhancements to include perimeter barriers, alarm monitoring, surveillance capability, entry searches and staff training.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Zillmere Sports Centre		500		2,000		3,000		—		—

Delivering on our election commitments, the Government has provided additional funding of $5.5 million over three years to redevelop a Government-owned building into an indoor sports complex at Zillmere.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Security of Payment for Subcontractors in the Building and Construction Industry		2,620		1,000		1,000		—		—

The Government has provided additional funding of $4.6 million over three years. This includes $3.1 million to promote public awareness of the Government’s project bank account reforms to improve security of payment for subcontractors in the building and construction industry and, delivering on our election commitment, $1.5 million for the Queensland Building and Construction Commission to undertake a full business architecture review, including development of an IT solution to improve efficiency in delivering existing services and effectively implementing building policy reforms.

56

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Building and Asset Services Apprenticeship Program and Compliance with the Queensland Government Building and Construction Training Policy		1,000		800		800		—		—

Delivering on our election commitments, the Government has provided additional funding of $2.6 million over three years to re-establish and implement the Building and Asset Services apprenticeship program, and to enhance compliance with the Queensland Government Building and Construction Training policy.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Embedding Procurement Reform		—		535		535		535		535

The Government is providing additional funding of $535,000 per annum from 2018-19 to strengthen the procurement compliance, coordination and referral function to ensure contractual commitments made by suppliers are upheld.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Thomas Dixon Centre Refurbishment		—		500		—		—		—

The Government is providing additional funding of $500,000 in 2018-19 to expedite design works for the refurbishment of the Thomas Dixon Centre to provide enhanced performance facilities for Queensland Ballet.

This is part of an overall package of $14 million over two years towards the refurbishment of the Thomas Dixon Centre. The capital component of this measure can be found in Chapter 3 Capital Measures.

57

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Non Conforming Building Products Audit Taskforce		4,462		393		—		—		—

The Government has provided additional funding of $4.9 million over two years for the Non-Conforming Building Products Audit Taskforce. An additional $1.6 million has been internally reprioritised by the department in 2017-18 to fund this measure.

The funding will allow the Taskforce to undertake assessments of Government Buildings as well as develop self-assessment processes and systems for use by private sector building owners.

This forms part of the Government’s overall package of $7.6 million over two years to support taskforce operations in assessing the critical safety risks posed by combustible cladding on Government and non-Government buildings throughout Queensland. Further funding can be found in the Queensland Fire and Emergency Services section of this chapter.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Local Sporting Infrastructure		—		—		—		—		—

The Government is providing additional funding of $15 million, held centrally, to support the development of local sporting infrastructure. Some proposals will require matching contributions from other levels of government.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
University of the Sunshine Coast Stadium		7,000		—		—		—		—

Delivering on our election commitments, the Government has provided additional funding of $7 million in 2017-18 to complete the refurbishment of the University of the Sunshine Coast Stadium, which will expand the indoor seating capacity and provide additional amenities.

58

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Youth Justice - Youth and Family Head Leases		—		—		—		—		—

Funding of $623,000 over three years from 2018-19 is being internally reprioritised by the department to improve housing responses to young people in the youth justice system and their families at risk of homelessness.

This forms part of the Government’s total funding of $40.7 million over four years ($22.3 million new funding and $18.4 million reprioritised funding) for youth justice support measures. Further details can be found in the Department of Child Safety, Youth and Women, Department of Education, and Queensland Health sections of this chapter and the Queensland Health section of Chapter 3 Capital Measures.

59

Budget Measures 2018-19

Department of Innovation, Tourism Industry Development and the Commonwealth Games

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Making Queensland Australia’s Events Capital		—		7,500		12,000		16,500		—

Delivering on our election commitments, the Government is providing increased funding of $36 million over three years to attract more major events to Queensland. This investment will drive growth of major events throughout Queensland making it Australia’s Events Capital.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Continuation of the Funding Guarantee for Tourism and Events Queensland		—		—		—		—		46,875

The Government will provide increased funding of $46.9 million in 2021-22 to continue the restoration of funding to Tourism and Events Queensland (TEQ). This will allow TEQ to carry out its core functions including promoting Queensland destinations and driving tourism growth.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Growing Tourism, Growing Tourism Jobs		9,000		20,700		27,200		35,200		2,500

Delivering on our election commitments, the Government has provided additional funding of $94.6 million over five years to progress initiatives under the Growing Tourism, Growing Tourism Jobs initiative. This includes $48.6 million for the Attracting Tourism Fund to provide incentives to attract new international airline routes and cruise ships to Queensland.

It also includes $46 million for a new Regional Tourism Infrastructure and Experience Development program to assist communities to grow tourism by developing new and improved tourism experiences or products and develop tourism industry capability, including facilitation of outback tourism projects.

60

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Advance Queensland Foundations of the Future		—		15,900		16,000		18,000		23,150

Delivering on our election commitments, the Government is providing increased funding of $73 million over four years for the Advance Queensland initiative including $30 million for Ignite Ideas which is helping Queensland startups and small and medium enterprises to succeed and $26 million for Industry Research Fellowships which support collaboration between researchers and industry to solve some of the State’s biggest challenges.

This measure is incorporated into Government’s $650 million Advance Queensland initiative to foster innovation and entrepreneurialism, capitalise on our natural advantages, and help raise Queensland’s profile as an attractive investment destination.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Great Barrier Reef Island Rejuvenation Package		5,000		10,000		10,000		—		—

Delivering on our election commitments, the Government has provided additional funding of $25 million over three years to establish a Reef Resort Rejuvenation Fund to deliver infrastructure for Great Barrier Reef islands. The fund will prioritise projects focused on growing, greening and cleaning.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Advance Queensland Increase		18,000		8,000		8,000		8,000		8,000

The Government has provided increased funding of $50 million over five years to continue funding programs under the Advance Queensland initiative. Measures funded will include expansion of ‘The Precinct’, the State’s flagship hub for start-ups; support for the Clem Jones Centre for Ageing and Dementia Research; and a range of programs to drive and scale innovation in Queensland including driving the development of key technologies such as artificial intelligence, big data, drones and robotics in Queensland industry and programs focussing on innovation and the digital economy in our regions.

61

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Major Events Funding		9,380		5,250		5,526		5,314		—

The Government has provided additional funding of $26.2 million over four years to secure major events for Queensland. This funding supports the Advancing Tourism 2016-20: Growing Queensland Jobs Strategy by attracting and growing events as one of the key strategies to capitalise on Queensland’s growing tourism industry and increase market share.

The funding also includes reprioritisation from savings of $650,000 over two years from 2018-19, towards tourism projects which will build on the legacy of the Gold Coast 2018 Commonwealth Games and, delivering on our election commitment, support preparation of a business case for staging supercars racing at Rockhampton.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Australian Workers Heritage Centre		500		1,700		—		—		—

The Government has provided additional funding of $2.2 million over two years to meet the costs of upgrades at the Australian Workers’ Heritage Centre including refurbishment and extension of premises and exhibits.

62

Budget Measures 2018-19

Department of Justice and Attorney-General

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Blue Card Services ‘No Card, No Start’		—		3,050		2,775		1,420		—

Delivering on our election commitments, the Government is providing additional funding of $7.2 million over three years to implement an online Blue Card application system as part of the Government’s ‘No Card, No Start’ initiative. The capital component of this measure can be found in Chapter 3 Capital Measures.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Blue Card Services Efficiency Savings		—		5,000		—		—		—

The Government is providing increased funding of $5 million in 2018-19 for savings not realised from Blue Card Services by the former Government as part of the commitment to protect jobs and maintain the integrity of the Blue Card System. This will enable Blue Card Services to continue current staffing and capability levels.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Queensland Courts and Justice Services		—		10,000		—		—		—

The Government is providing increased funding of $10 million in 2018-19 to respond to increased criminal, domestic and family violence matters in Queensland Courts, dangerous sexual offender matters and other justice system initiatives.

63

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Victim Assist Queensland		—		5,700		5,700		—		—

The Government is providing increased funding of $11.4 million over two years to provide financial support to victims of crime.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Gambling Help Service System		—		5,277		5,295		5,314		5,333

The Government is providing increased funding of $21.2 million over four years and $5.3 million per annum ongoing to continue to provide counselling and support services for people adversely affected by problem gambling.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Office of the Director of Public Prosecutions		—		5,000		—		—		—

The Government is providing increased funding of $5 million in 2018-19 to respond to increased workload within the Office of the Director of Public Prosecutions.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Director of Child Protection Litigation		—		4,630		—		—		—

The Government is providing increased funding of $4.6 million in 2018-19 for additional staff for the Director of Child Protection Litigation. This funding will support the management of child protection order applications and proceedings by the Director of Child Protection Litigation, including working with the Office of the Child and Family Official Solicitor.

Details of funding for the Office of the Child and Family Official Solicitor can be found in the Department of Child Safety, Youth and Women section of this chapter.

64

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Crime and Corruption Commission - Digital Investigative and Information Security Services		—		3,374		3,593		3,792		3,897

The Government is providing additional funding of $14.7 million over four years and $3.9 million per annum ongoing to enhance the processing of digital evidence and to provide for a contemporary information security platform. The capital component of this measure can be found in Chapter 3 Capital Measures.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Recording and Transcription Services		—		2,881		6,494		4,646		—

The Government is providing increased funding of $14 million over three years for the continued delivery of recording and transcription services within Queensland Courts.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Office of the Public Guardian and Queensland Civil and Administrative Tribunal		—		2,500		—		—		—

The Government is providing additional funding of $2.5 million in 2018-19 for the Office of the Public Guardian and the Queensland Civil and Administrative Tribunal to meet immediate demand pressures related to the rollout of the National Disability Insurance Scheme.

65

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Tackling Alcohol Fuelled Violence Program - Safe Night Precincts		—		2,042		—		—		—

The Government is providing increased funding of $2 million in 2018-19 to continue inspections of licensed venues during peak trading periods and to monitor the industry’s progress on implementing and complying with the Tackling Alcohol Fuelled Violence policy.

This forms part of the Government’s Tackling Alcohol Fuelled Violence Program. Further details of this funding can be found in the Queensland Corrective Services, Queensland Police Service and Department of Communities, Disability Services and Seniors sections of this chapter.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Queensland Sentencing Advisory Council		—		1,851		1,638		1,677		1,717

The Government is providing increased funding of $6.9 million over four years and $1.7 million per annum ongoing for the continued delivery of the Queensland Sentencing Advisory Council which educates the community about the justice system and sentencing, collates statistical information about sentencing, and researches the effectiveness of sentencing practices in reducing crime.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Crime and Corruption Commission - Investigative Capability		—		1,792		1,832		1,872		1,913

The Government is providing additional funding of $7.4 million over four years and $1.9 million per annum ongoing for additional frontline investigators to combat major crime and corruption.

66

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Specialist Courts - Murri Court and Court Link		—		1,703		2,408		2,482		2,527

The Government is providing increased funding of $9.1 million over four years and $2.5 million per annum ongoing to support the continued delivery of the Murri Court and expansion of Court Link services to Southport, Mount Isa and Ipswich.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Aurukun Restorative Justice Program		—		910		—		—		—

The Government is providing increased funding of $910,000 in 2018-19 to support the continued delivery of the Restorative Justice Program in Aurukun.

This forms part of the Government’s overall package of $1.6 million to continue the Aurukun Four Point Plan in 2018-19 to address safety and support the community. Further funding can be found in the Department of Aboriginal and Torres Strait Islander Partnerships and Queensland Corrective Services sections of this chapter.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Office of the Information Commissioner		—		598		613		628		644

The Government is providing increased funding of $2.5 million over four years and $644,000 per annum ongoing for additional review officers.

67

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Queensland Family and Child Commission		—		396		—		—		—

The Government is providing additional funding of $396,000 in 2018-19 to address online child safety and child exploitation, and to empower children and young people to have a voice and contribute to discussion about issues affecting them and their future.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Domestic and Family Violence Response - Specialist Domestic and Family Violence Courts		—		264		459		463		468

The Government is providing additional funding of $1.7 million over four years and $468,000 per annum ongoing to expand the Townsville Specialist Domestic and Family Violence (DFV) Court (including circuit courts in Mount Isa and Palm Island) to include criminal DFV matters.

Total funding for the expansion of the Townsville Specialist DFV Court is $8.1 million over four years and $2.3 million per annum ongoing. Further funding can be found in the Queensland Police Service, Queensland Corrective Services, and the Department of Child Safety, Youth and Women sections of this chapter.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Coroners Court of Queensland		—		258		—		—		—

The Government is providing increased funding of $258,000 in 2018-19 to support the coronial inquest into deaths at Dreamworld.

68

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Anti-Discrimination Commission Queensland - Human Rights Act for Queensland		—		244		834		604		616

Delivering on our election commitments, the Government is providing additional funding of $2.3 million over four years and $616,000 per annum ongoing to the Anti-Discrimination Commission to support the operation and administration of a Human Rights Act for Queensland. The capital component of this measure can be found in Chapter 3 Capital Measures.

69

Budget Measures 2018-19

Department of Local Government, Racing and Multicultural Affairs

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Works for Queensland		—		50,000		75,000		75,000		—

Delivering on our election commitments, the Government is providing increased funding of $200 million over three years to extend the Works for Queensland program, which will continue to support job-creating maintenance and minor infrastructure works across regional Queensland, bringing the total funding of this program to $600 million over five years from 2016-17.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Support for Country Racing		11,600		12,600		13,600		17,600		—

Delivering on our election commitments, the Government has provided increased funding of $55.4 million over four years to support country racing clubs including, funding for racing club infrastructure across the State. This measure brings total funding for country racing to $70.4 million over four years.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Torres Shire Water Treatment Infrastructure Upgrade		—		4,500		7,500		—		—

The Government is providing additional funding of up to $12 million over two years to upgrade Torres Shire Council’s drinking water treatment infrastructure including water filtration and other related infrastructure on Thursday Island and Horn Island.

The adjacent Hammond Island will also benefit from the upgrade as its drinking water is sourced primarily from Torres Shire Council via a pipeline.

70

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Building Integrity and Sustainability in Local Government		—		3,967		3,360		3,382		3,416

The Government is providing additional funding of $14.1 million over four years to enhance the integrity and sustainability of the local government system by establishing an independent body to consider councillor conduct complaints and improve governance practices.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Torres Strait and Palm Island Car and Waste Metal Removal		—		2,500		2,500		—		—

The Government is providing additional funding of $5 million over two years to remove waste metal build-up including vehicle stockpiles from communities located in the Torres Strait Island Regional Council, Palm Island Aboriginal Shire Council and Torres Shire Council areas. The $2.5 million funding allocation in 2019-20 is to be met by revenue collected from the Waste Disposal Levy.

Further details can be found in the Department of Environment and Science and Department of State Development, Manufacturing, Infrastructure and Planning sections of this chapter and the Department of Environment and Science section of Chapter 4 Revenue Measures.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Implementing More Effective Funding Grants to Local Government		—		1,700		500		500		500

The Government is providing additional funding of $3.2 million over four years to undertake implementation planning to improve and simplify the administration of grants to local government. This measure progresses the recommendations from the Review of Grants to Local Government: Current and future state assessments. The capital component of this measure can be found in Chapter 3 Capital Measures.

71

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Kowanyama Aboriginal Shire Council Economic Growth and Jobs Initiative		—		1,100		—		—		—

The Government is providing additional funding of $1.1 million in 2018-19 to fund the purchase of appropriate heavy equipment necessary to establish a road and construction unit within the Kowanyama Aboriginal Shire Council.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Celebrating Multicultural Queensland Grants Program		—		1,000		1,000		1,000		—

Delivering on our election commitments, the Government is providing increased funding of $3 million over three years to support community initiatives which promote a harmonious, welcoming and inclusive community.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
State Government Financial Aid - Indexation		—		759		1,536		2,334		3,241

The Government is providing additional funding of $7.9 million over four years to align future indexation of funding provided under the State Government Financial Aid program, with the mid-point of the Reserve Bank of Australia’s inflation target.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Show Society Grants Program		—		133		133		134		—

Delivering on our election commitments, the Government is providing increased funding of $400,000 over three years for the Show Society Grants Program which supports Queensland Show Societies conduct annual agricultural shows and to upgrade and maintain existing showground facilities.

72

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Ayr Nature-Based Playground		1,500		—		—		—		—

Delivering on our election commitments, the Government has provided increased funding of $1.5 million in 2017-18 for further development of a nature-based playground at Ayr.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Beautiful Bowen		5,000		—		—		—		—

Delivering on our election commitments, the Government has provided additional funding of $5 million in 2017-18 for the Whitsunday Regional Council’s Beautiful Bowen Project. This project will improve the streetscapes and tourism infrastructure in Bowen to attract more domestic and international tourists.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Mount Archer Master Plan		400		—		—		—		—

Delivering on our election commitments, the Government has provided additional funding of $400,000 in 2017-18 to build a new open-air amphitheatre at Mount Archer.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Support for Refugees and Asylum Seekers		700		—		—		—		—

The Government has provided additional funding of $700,000 in 2017-18 and reprioritised funding of $3.6 million over two years from 2018-19, to provide total funding of $4.3 million over three years, to deliver assistance to vulnerable refugees and asylum seekers in Queensland including financial and material aid, housing assistance and other support.

73

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Torres Strait Islands Seawalls and Coastal Inundation Mitigation Upgrades		—		—		—		—		—

The Government is providing additional funding of $20 million over three years from 2018-19, held centrally, pending an Australian Government commitment to match funding. This measure will continue inundation mitigation works on five outer Torres Strait Islands, which will protect infrastructure and communities on these islands from rising sea levels and the impacts of coastal inundation.

74

Budget Measures 2018-19

Department of Natural Resources, Mines and Energy

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Solar Thermal Plant Capital Contribution		—		50,000		—		—		—

Delivering on our election commitments, the Government is providing additional funding of $50 million in 2018-19 as a capital grant to support the development of concentrated solar thermal with storage projects to provide clean baseload power.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Affordable Energy Plan		18,200		27,000		24,800		—		—

The Government has provided additional funding of $70 million over three years which forms part of the Affordable Energy Plan to reduce and better manage Queenslanders’ energy use and costs. This supports customers with energy savings, increases access to solar and batteries and incorporates a business energy savers program.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Coal Mine Workers’ Health Scheme		7,565		9,468		—		—		—

The Government has provided increased funding of $17 million over two years for the Coal Mine Workers’ Health Scheme to take action to ensure the regulatory framework for safety and health in the resources sector is contemporary and effective.

75

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Coal Seam Gas Compliance Unit		—		3,369		—		—		—

The Government is providing additional funding of $3.4 million in 2018-19 for the continued support of community engagement and resource industry compliance activities for the petroleum and gas, coal and mineral sectors.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Queensland Water Regional Alliance Program		—		1,050		1,050		1,050		1,050

The Government is providing additional funding of $4.2 million over four years to retain and expand the Queensland Water Regional Alliance Program. The program is managed by the Local Government Association of Queensland and represents an effective mechanism to develop regional economies of scale to realise the four dimensions of water - security, reliability of supply, water quality and appropriate water pricing.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Gas Action Plan		3,181		936		300		—		—

Delivering on our election commitments, the Government has provided additional funding of $4.4 million over three years to promote the development of the gas sector and bring supply to market through the Gas Action Plan.

76

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Extending Existing Drought Relief Arrangements		—		—		—		—		—

The Government is providing funding of up to $10.4 million in 2018-19, held centrally, as part of the extension of drought relief arrangements to continue to provide relief to farming customers from fixed charges for electricity accounts that are used to pump water for farm or irrigation purposes during periods of drought.

The Drought Assistance Package is a total of up to $34.6 million in 2018-19 to support drought affected communities across the State. Further details can be found in the Department of Agriculture and Fisheries section of this chapter and in the Department of Natural Resources, Mines and Energy section of Chapter 4 Revenue Measures.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Government Action on North Stradbroke Island (Minjerribah)		—		—		—		—		—

Funding of $3.9 million over two years from 2017-18 has been internally reprioritised by the department to coordinate action on North Stradbroke Island (Minjerribah). This supports the rehabilitation of sand mining areas and improves employment and economic opportunities beyond sand mining.

Further funding can be found in the Department of Environment and Science and Department of State Development, Manufacturing, Infrastructure and Planning sections of this chapter and in the Department of Environment and Science section of Chapter 3 Capital Measures.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Linc Energy Mine Site		—		—		—		—		—

Funding of $7.1 million is being internally reprioritised to 2018-19 by the department to provide ongoing site security, management and remediation of infrastructure works at the Linc site.

The capital component of this measure related to the Department of Natural Resources, Mines and Energy can be found in Chapter 3 Capital Measures.

77

Budget Measures 2018-19

Department of State Development, Manufacturing, Infrastructure and Planning

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Building our Regions		—		35,000		17,500		17,500		—

Delivering on our election commitments, the Government is providing increased funding of $70 million over three years for Round 4 of Building our Regions to deliver critical infrastructure for the regions. Total funding for the Building Our Regions - Regional Infrastructure Fund is $445 million over six years, from 2015-16 to 2020-21.

The purpose of the program is to provide funding for critical infrastructure in regional areas of the State that meet the specific needs of regional communities and supports economic development, including generating jobs.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Resource Recovery Industry Development Program		—		30,000		50,000		20,000		—

The Government is providing additional funding of $100 million over three years to support Queensland’s resource recovery and recycling industry through the Resource Recovery Industry Development Program. The department will work with local governments and private sector enterprises to help them find innovative and cost effective solutions to the problem of waste going to landfill.

This measure will be funded by revenue collected from the Waste Disposal Levy. Further details can be found in the Department of Environment and Science and Department of Local Government, Racing and Multicultural Affairs sections of this chapter and the Department of Environment and Science section of Chapter 4 Revenue Measures.

78

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Queensland Made		4,000		10,000		13,000		13,000		—

Delivering on our election commitments, the Government has provided additional funding of $30 million over four years from 2017-18 to 2020-21 to establish manufacturing hubs in Cairns, Townsville and Rockhampton and $10 million over four years from 2017-18 to 2020-21 for defence supply chain logistics hubs in Townsville and Ipswich.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Queensland Reconstruction Authority Disaster Resilience Fund		—		9,500		9,500		9,500		9,500

The Government is providing additional funding of $38 million over four years to establish the Disaster Resilience Fund (DRF). The DRF funds local governments, State agencies and non-government organisations to deliver mitigation and resilience projects.

The Queensland Reconstruction Authority (QRA) leads disaster recovery as well as mitigation and resilience policy on behalf of the Queensland Government.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Queensland Reconstruction Authority Bluewater Trail and Queens Park Revitalisation		—		8,864		—		—		—

The Government is providing additional funding of $8.9 million in 2018-19 for the Bluewater Trail and Queens Park revitalisation in Mackay. The program is being managed by the Queensland Reconstruction Authority.

79

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Advancing Queensland’s Biofuture (Biofutures Acceleration Program II)		—		5,000		—		—		—

The Government is providing increased funding of $5 million in 2018-19 for Waste to Energy projects facilities, which turn urban waste into renewable energy and bioproducts.

This funding will be used to support the testing and establishment of small-scale innovative technologies suitable for deployment in regional areas promoting a wide range of energy products derived from waste materials.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Queensland Reconstruction Authority Whitsunday Regional Council Administration Building		—		4,500		500		—		—

The Government is providing additional funding of $5 million over two years to Whitsunday Regional Council for reconstruction of the council administration building, including the local disaster coordination centre.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Queensland Reconstruction Authority Beach Restoration and Mitigation		—		3,562		1,000		—		—

The Government is providing additional funding of $4.6 million over two years to determine best long-term solutions to help prevent erosion prior to sand replenishment at Midge Point and Lambert Beach and the construction of new rock groynes on St Helen’s Beach.

80

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Government Action on North Stradbroke Island (Minjerribah) - Economic Transition Strategy		1,500		3,250		—		—		—

The Government has provided increased funding of $4.8 million over two years towards projects to develop the North Stradbroke Island Economic Transition Strategy. The Strategy will address the impacts of the cessation of sand mining on North Stradbroke Island (Minjerribah) in 2019.

Further funding can be found in the Department of Environment and Science and Department of Natural Resources, Mines and Energy sections of this chapter and in the Department of Environment and Science section of Chapter 3 Capital Measures.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Strong and Sustainable Resources		200		2,300		—		—		—

The Government has provided additional funding of $2.5 million over two years to implement and administer the requirements of the Strong and Sustainable Resource Communities Act 2017. The object of this Act is to implement a ‘locals first’ program, legislating against the use of a 100% fly-in, fly-out (FIFO) workforce for the operation of mines located near a regional community.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Government Action on North Stradbroke Island (Minjerribah) - One Mile Infrastructure Works		—		500		500		—		—

The Government is providing increased funding of $1 million over two years for urgent Infrastructure works at One Mile.

This project is part of a suite of projects with Quandamooka Yoolooburrabee Aboriginal Corporation for Government Action on North Stradbroke Island (Minjerribah). Further funding can be found in the Department of Environment and Science and Department of Natural Resources, Mines and Energy sections of this chapter and in the Department of Environment and Science section of Chapter 3 Capital Measures.

81

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Queensland Reconstruction Authority Disaster Recovery Services Donation Management		—		400		400		400		—

The Government is providing increased funding of $1.2 million over three years to coordinate an arrangement with service providers to register and match donations with community needs resulting from disaster events, on behalf of the Queensland Government.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Advance Queensland Industry Attraction Fund		—		—		—		—		—

The Government has provided increased funding of $65 million over four years from 2017-18, held centrally, to the Advance Queensland Industry Attraction Fund. This increase, which includes a $40 million extension over 2 years, brings the total funding to $105 million.

This fund is focused on achieving the Queensland Government’s objectives of employment creation, regional growth and encouraging innovation. It will seek to further diversify economic activity by harnessing growth in emerging industries and value adding to existing industries.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Expansion of the Jobs and Regional Growth Fund		—		—		—		—		—

The Government is providing increased funding of $20 million in 2018-19, held centrally, to assist businesses and projects that will generate economic development and employment opportunities in regional Queensland. This increase brings the total funding to $150 million over three years from 2016-17.

Queensland Treasury and the Department of State Development, Manufacturing, Infrastructure and Planning are jointly responsible for the fund. This initiative can also be found in the Queensland Treasury section of this chapter.

82

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Gasfields Commission Queensland Implementation of Government recommendations arising from the Scott Review		—		—		—		—		—

Funding of $400,000 in 2018-19 has been internally reprioritised by the department to assist with implementing recommendations arising from the Independent Review of the Gasfields Commission Queensland and Associated Matters.

The funding will assist the Government to meet commitments arising from the Review to secure gas supply through proactive communications and engagement strategy.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Government Action on North Stradbroke Island (Minjerribah) - Bushfire Management Plans		900		—		—		—		—

The Government has provided increased funding of $900,000 in 2017-18 to work in collaboration with the Quandamooka Yoolooburrabee Aboriginal Corporation to develop bushfire management plans for townships on North Stradbroke Island (Minjerribah).

This project is part of a suite of projects for Government Action on North Stradbroke Island (Minjerribah). This project will be managed by the Queensland Reconstruction Authority. Further funding can be found in the Department of Environment and Science and Department of Natural Resources, Mines and Energy sections of this chapter and in the Department of Environment and Science section of Chapter 3 Capital Measures.

83

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Hydrogen Industry and Energy Opportunity		—		—		—		—		—

Funding of $750,000 in 2018-19 has been internally reprioritised by the department to support the investigation of local opportunities, capability and capacity to produce and supply hydrogen at a competitive price to alternative energy sources.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Made in Queensland		5,000		—		10,000		5,000		—

Delivering on our election commitments, the Government has provided increased funding of $20 million over three years to the Made in Queensland grants program. This increase brings the total funding to $40 million over four years from 2017-18 to support the manufacturing sector to become more internationally competitive, increase productivity and adopt new processes and technologies.

84

Budget Measures 2018-19

Department of the Premier and Cabinet

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Screen Queensland Production Attraction Strategy		10,000		10,000		—		—		—

Delivering on our election commitments, the Government has provided increased funding of $20 million over two years, with total funding of $50 million over four years from 2015-16, to grow a pipeline of large-scale film and high-end television productions in Queensland. This measure includes $200,000 to develop a Far North Queensland screen production strategic plan.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Screen Production Facility		—		3,829		2,724		2,724		2,724

The Government is providing additional funding of $12 million over four years for Screen Queensland to establish a screen production facility in Brisbane. The 2018-19 funding includes a $1 million capital grant to fit out the property.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Continuation of the Events Sponsorship Fund		—		3,500		3,500		3,500		—

The Government is providing increased funding of $10.5 million over three years, with total funding of $14.5 million over five years from 2016-17. This will support the continued operation of the Events Sponsorship Fund to drive economic and community benefits through the attraction, leveraging and delivery of high value events.

85

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Ministerial Offices		—		2,769		1,250		3,299		3,299

The Government is providing increased funding of $10.6 million over four years to provide support to Ministerial Offices.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Regional Office Initiative		—		709		941		964		—

The Government is providing increased funding of $2.6 million over three years to continue stakeholder engagement, increase the Government’s regional presence and deliver on its commitment to build strong regional economies and communities.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Supporting Veterans - Grants		�� —		500		500		500		—

Delivering on our election commitments, the Government is providing additional funding of $1.5 million over three years for a grants program for veterans’ groups and other organisations for the creation, upkeep and renovation of monuments, memorials and other public sites recognising veterans’ achievements.

This forms part of the Government’s $4.3 million Supporting Veterans initiative. Further funding can be found in the Department of Communities, Disability Services and Seniors section of this chapter and in the Department of Communities, Disability Services and Seniors section of Chapter 3 Capital Measures.

86

Budget Measures 2018-19

Department of Transport and Main Roads

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Rail Transport Services		—		225,985		221,828		291,514		364,670

The Government is providing increased funding of $1.104 billion over four years for the contract extension commencing 1 July 2018 for the provision of rail transport services.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Station Upgrades and Park’n’Ride facilities		1,860		9,570		21,290		32,460		42,459

Delivering on our election commitments, the Government has provided increased funding of $107.6 million over five years to support rail station upgrades and expansion of park’n’ride facilities.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Derelict Vessels Enforcement Program		—		5,000		5,000		5,000		5,000

The Government is providing additional funding of $20 million over four years to address the number of derelict vessels accumulating along Queensland’s coastline that are a concern to waterway users and the general public and pose environmental safety and amenity issues.

87

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
National Marine Safety Regulator		—		4,860		3,830		2,840		1,620

The Government is providing additional funding of $13.8 million over five years from 2018-19 to ensure that the transfer of full service delivery responsibilities for the administration of the safety of domestic commercial vessels on 1 July 2018 to the Australian Government is undertaken in a sustainable manner decreasing the impact on commercial operators based in Queensland.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Camera Detected Offence Program		—		2,689		4,967		4,831		5,385

The Government is providing increased funding of $17.9 million over four years for road safety education and awareness programs and to improve the safety of the sections of state-controlled roads where accidents happen most frequently.

The Government is providing total increased funding of $166.6 million over four years across departments as part of the Camera Detected Offence Program. Further funding can be found in the Queensland Police Service and Queensland Treasury sections of this chapter. The capital component of this measure can be found in the Department of Transport and Main Roads and Queensland Police Service sections of Chapter 3 Capital Measures.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
New Public Transport Ticketing System		—		2,000		2,500		3,500		—

The Government is providing $8 million over three years for trials and pilots associated with implementing the new public transport ticketing system in Queensland. Further funding can be found in Chapter 3 Capital Measures.

88

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
School Transport Infrastructure Program		—		2,000		5,000		6,500		6,500

The Government is providing additional funding of $20 million over four years to establish a School Transport Infrastructure Program. This program will operate in conjunction with local councils and will provide funding towards school transport-related infrastructure upgrades, including vehicle turnaround or parking facilities, and stop drop and go areas. It is intended that funding would be matched 50:50 by councils, effectively delivering a $40 million total funding pool over the life of the program.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Eastern Transitway		200		1,800		8,000		12,000		—

Delivering on our election commitments, the Government has provided additional funding of $22 million over four years to deliver the Eastern Transitway with upgrades to five major intersections, located at Cavendish Road, Bennetts Road, Boundary Road, Gallipoli Road and Creek Road, which will include bus priority measures on Old Cleveland Road.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Bus Driver Wage Parity in Cairns and Sunshine Coast		2,082		1,466		—		—		—

The Government has provided additional funding of $3.5 million over two years to meet the cost of wage claims for Sunshine Coast and Cairns bus drivers through to the end of calendar year 2018.

89

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Passenger Transport Infrastructure Investment Program (PTIIP) supplement		—		1,000		5,500		6,500		7,000

The Government is providing increased funding of $20 million over four years to increase the provision of shaded structures, such as shelters, at key passenger transport facilities to provide requisite levels of customer amenity where need exists.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Queensland Walking Strategy		—		500		1,000		1,000		—

Delivering on our election commitments, the Government is providing additional funding of $2.5 million over three years to develop and implement a Queensland Walking Strategy that is focused on getting people to walk as a mode of transport.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Beams Road Overpass Investigation		20		150		230		—		—

Delivering on our election commitments, the Government has provided additional funding of $400,000 over three years for a feasibility study into an overpass at the Beams Road level crossing at Carseldine.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Bus Driver Safety		—		—		—		—		—

Funding of $7 million over two years from 2017-18 has been internally reallocated by the department for bus driver safety initiatives. This includes funding for a grants program to roll out driver security barriers on high risk services, installation of anti-shatter film in the remaining 50% of the urban fleet and a comprehensive public awareness campaign.

90

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Future Proofing the Bruce		—		—		5,000		5,000		—

Delivering on our election commitments, the Government will provide additional funding of $10 million over two years to develop a 15-year vision and initial Action Plan to identify and prioritise projects to be delivered as part of upgrades to the Bruce Highway. The capital component of this initiative can be found in Chapter 3 Capital Measures.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
M1 Pacific Motorway - Eight Mile Plains to Logan Motorway Planning		—		—		8,000		8,000		—

Delivering on our election commitments, the Government will provide additional funding of $16 million over two years to develop a business case for future upgrades of the M1 corridor between Eight Mile Plains and the Logan Motorway.

This brings total additional funding for planning and upgrades to the M1 Pacific Motorway to $897.5 million. Further funding for the M1 Pacific Motorway can be found in Chapter 3 Capital Measures.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Mooloolah River Interchange		—		—		—		—		—

Funding of $7.5 million over two years from 2018-19 has been internally reallocated by the department to complete planning and business case development for the Mooloolah River Interchange (MRI) project. The MRI project is located at Mooloolaba on a key section of the state-controlled road network, connecting the Sunshine Motorway and Nicklin Way on the Sunshine Coast.

91

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
New Generation Rollingstock Business Operating Model		9,250		—		—		—		—

The Government has provided additional funding of $9.3 million in 2017-18 for rail transport service contract expenses to support the business operating model for the introduction of the New Generation Rollingstock fleet.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Transport Infrastructure Development Scheme		—		—		—		—		—

An additional $30 million has been reallocated internally by the department in 2021-22 for the Transport Infrastructure Development Scheme (TIDS). TIDS is the grants program through which the department provides funding to local government for targeted investment in transport-related infrastructure.

92

Budget Measures 2018-19

Electoral Commission of Queensland

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Prohibited Donor Scheme		—		526		311		318		324

The Government is providing funding of $1.5 million over four years to support the implementation of a prohibited donors scheme.

93

Budget Measures 2018-19

Legislative Assembly of Queensland

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
2017 Electoral Boundary Redistribution and Election		3,384		2,772		2,772		2,772		2,772

The Government has provided additional funding of $14.5 million over five years and $2.8 million per annum ongoing to meet costs associated with the 2017 Electoral Boundary Redistribution and the State election in 2017. The capital component of this measure can be found in Chapter 3 Capital Measures.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Parliamentary Annexe Lift Upgrade Program		60		60		60		60		60

The Government has provided increased funding of $60,000 per annum from 2017-18 to maintain and operate the upgraded Parliamentary Annexe low-rise lifts and service lift. The capital component of this measure can be found in Chapter 3 Capital Measures.

94

Budget Measures 2018-19

Public Safety Business Agency

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Queensland Government Air Aircraft Maintenance and Compliance		—		2,899		—		—		—

The Government is providing additional funding of $2.9 million in 2018-19 to ensure Queensland Government Air’s (QGAir) fleet continues to be compliant with Civil Aviation Safety Authority requirements. This funding enables QGAir to continue to support the emergency helicopter network across the State for search and rescue, natural disasters, police and aeromedical operations and provide fixed wing transport services for police, government and organ transfer. The capital component of this measure can be found in Chapter 3 Capital Measures.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Public Safety Regional Radio Communications		—		—		—		—		—

The Government will provide additional funding of $26.9 million, held centrally, to ensure Queensland Fire and Emergency Services complies with Australian Communications and Media Authority requirements.

95

Budget Measures 2018-19

Public Service Commission

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Integrity Commissioner’s Expanded Advisory and Public Awareness Role		—		331		350		366		382

The Government is providing increased funding of $1.4 million over four years and $382,000 per annum ongoing to assist with the significant expansion of the Integrity Commissioner’s jurisdiction. The Queensland Government has supported recommendations in the Belcarra Report, and the most recent Strategic Review of the functions of the Integrity Commissioner, to reduce barriers and significantly broaden the range of persons who can seek the Integrity Commissioner’s advice.

96

Budget Measures 2018-19

Queensland Corrective Services

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Borallon Training and Correctional Centre - Final Stage Recommissioning		600		6,941		6,941		6,941		6,941

The Government has provided increased funding of $28.4 million over five years and $6.9 million per annum ongoing for the final stage recommissioning and operation of the Borallon Training and Correctional Centre.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Probation and Parole Service Funding		—		6,500		2,900		—		—

The Government is providing increased funding of $9.4 million over two years to maintain probation and parole staffing levels.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Correctional Centre Health Services		—		2,862		—		—		—

The Government is providing additional funding of $2.9 million in 2018-19 to improve service delivery for prisoners with a disability or mental illness.

97

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Expansion of the Bail Support Program		—		1,222		1,253		1,456		—

The Government is providing increased funding of $3.9 million over three years to expand the bail support program. The program is designed to reduce re-offending while on bail, increase court appearance and provide a viable alternative to remand.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Tackling Alcohol Fuelled Violence Program - Safe Night Precinct Support Services		—		1,154		—		—		—

The Government is providing increased funding of $1.2 million in 2018-19 to continue supervised community service projects implemented within Safe Night Precincts across Queensland.

This forms part of the Government’s Tackling Alcohol Fuelled Violence Program. Further details of this funding can be found in the Queensland Police Service, Department of Communities, Disability Services and Seniors and Department of Justice and Attorney-General sections of this chapter.

	2017-18 $‘000			2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Aurukun Prisoner Reintegration Program		—	��		512		—		—		—

The Government is providing increased funding of $512,000 in 2018-19 to continue the prisoner reintegration program in Aurukun.

This forms part of the Government’s overall package of $1.6 million to continue the Aurukun Four Point Plan in 2018-19 to address safety and support the community. Further funding can be found in the Department of Aboriginal and Torres Strait Islander Partnerships and Department of Justice and Attorney-General sections of this chapter.

98

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Domestic and Family Violence Response - Specialist Domestic and Family Violence Courts		—		443		453		464		416

The Government is providing additional funding of $1.8 million over four years and $416,000 per annum ongoing, to expand the Townsville Specialist Domestic and Family Violence (DFV) Court (including circuit courts in Mount Isa and Palm Island) to include criminal domestic and family violence matters.

Total funding for the expansion of the Townsville Specialist DFV Court is $8.1 million over four years and $2.3 million per annum ongoing. Further funding can be found in the Department of Justice and Attorney-General, Queensland Police Service and the Department of Child Safety, Youth and Women sections of this chapter.

99

Budget Measures 2018-19

Queensland Fire and Emergency Services

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Additional Firefighters		—		3,590		6,070		8,670		11,202

Delivering on our election commitments, the Government is providing additional funding of $29.5 million over four years and $11.2 million per annum ongoing for an additional 100 firefighters and 12 fire communication officers to help the community prevent, prepare for, respond to and recover from the impact of fire and emergency events.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
State Emergency Service on-boarding to the Government Wireless Network in South East Queensland		—		3,000		4,000		1,350		950

The Government is providing additional funding of $15 million over 10 years to enable the State Emergency Service (SES) on-boarding to the Government Wireless Network in South East Queensland, to support volunteers and local government and enhance an integrated emergency response.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Non Conforming Building Products Audit Task Force		504		50		—		—		—

The Government has provided additional funding of $554,000 over two years to support the Queensland Fire and Emergency Services’ role on the Non Conforming Building Products Audit Taskforce. An additional $359,000 has also been internally reprioritised by the department in 2017-18 to fund this measure, bringing total funding to $913,000.

This forms part of the Government’s total funding package of $7.6 million over two years to support taskforce operations in assessing the critical safety risks posed by combustible cladding on Government and non-Government buildings throughout Queensland. Further funding can be found in the Department of Housing and Public Works section of this chapter.

100

Budget Measures 2018-19

Queensland Health

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Specialist Outpatient Strategy		—		77,360		77,360		—		—

Delivering on our election commitments, the Government is providing increased funding of $154.7 million over two years to extend the Specialist Outpatient Strategy, to ensure patients continue to have timely access to specialist outpatient appointments.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Nurse Navigators		—		—		53,904		55,663		—

Delivering on our election commitments, the Government will provide increased funding of $109.6 million over two years to increase the number of Nurse Navigators in Hospital and Health Services to 400. Nurse Navigators ensure patients with chronic illnesses find the care most appropriate to their needs, and play a vital role in coordinating clinical services and reducing preventable admissions to hospitals.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Midwives		13,700		14,100		14,400		14,800		—

Delivering on our election commitments, the Government has provided additional funding of $57 million over four years to employ an additional 100 midwives across Queensland to strengthen maternity services.

101

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Deadly Choices Healthy Lifestyle Program		8,000		8,000		—		—		—

Delivering on our election commitments, the Government has provided increased funding of $16 million over two years to further expand the Deadly Choices Healthy Lifestyle Program. This program aims to empower Aboriginal and Torres Strait Islander people to make healthy choices for themselves and their families to stop smoking, eat healthy food and exercise daily.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Rockhampton Drug Treatment and Rehabilitation Facility		—		—		1,480		3,320		—

Delivering on our election commitments, the Government will provide additional funding of $4.8 million over two years for a new 42-bed residential drug rehabilitation and treatment facility in Rockhampton. The capital component of this measure can be found in Chapter 3 Capital Measures.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Building Better Hospitals - Cancer Council Queensland Lodges		—		5,000		—		—		—

Delivering on our election commitments, the Government is providing additional funding of $5 million in 2018-19 to work in partnership with the Cancer Council Queensland to refurbish the accommodation lodges for cancer patients in Townsville, Toowoomba and Herston, Brisbane. Total funding included in the Building Better Hospitals package is $679 million. The capital component of this measure can be found in Chapter 3 Capital Measures.

102

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Operational Growth Funding		—		152,722		62,916		11,651		327,182

The Government is providing increased funding of $554.5 million over four years to support the ongoing growth in demand for health and ambulance services.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Queensland Ambulance Service - Classification Structure		33,980		57,997		100,087		107,630		107,630

The Government has provided additional funding of $192.1 million over three years from 2017-18 and $107.6 million per annum ongoing from 2020-21 to implement a new, contemporary classification and remuneration structure for Queensland Ambulance Service employees.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Sunshine Coast University Hospital		—		25,481		28,544		29,184		30,022

The Government is providing additional funding of $113.2 million over four years to meet operating costs associated with the Sunshine Coast University Hospital.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Community Helicopter Providers		—		7,612		—		—		—

The Government is providing additional funding of $7.6 million in 2018-19, with an ongoing indexed annual provision for this amount to be held centrally, for community helicopter providers to support Queensland’s Emergency Helicopter Network services.

103

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Correctional Centre Health Services		—		5,090		—		—		—

The Government is providing additional funding of $5.1 million in 2018-19 to support more clinical staff to meet increasing demand for health services in Queensland correctional facilities.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Youth Justice - Specialist Mental Health Youth Forensic Assessment		—		—		—		—		—

Funding of $4.7 million over three years from 2018-19 is being internally reprioritised by the department to improve mental health assessments of young people in the youth justice system.

This forms part of the Government’s total funding of $40.7 million over four years ($22.3 million new funding and $18.4 million reprioritised funding) for youth justice support measures. Further details can be found in the Department of Child Safety, Youth and Women, Department of Education, and Department of Housing and Public Works sections of this chapter and the Queensland Health section of Chapter 3 Capital Measures.

104

Budget Measures 2018-19

Queensland Police Service

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Increased Counter-Terrorism Capability		5,466		15,695		16,158		16,531		16,910

Delivering on our election commitments, the Government has provided additional funding of $53.8 million over four years from 2017-18 and $16.9 million per annum ongoing from 2021-22 for 85 counter terrorism officers and specialists and the establishment of a Security and Counter-Terrorism Command.

This forms part of the Government’s commitment to an additional 535 frontline police and operational specialists in priority areas across the State, which includes 30 counter-terrorism police officers and 20 police officers announced in the 2017-18 Budget. Further details can be found in this section and Chapter 3 Capital Measures.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Police Officers		—		12,574		31,817		51,998		73,155

Delivering on our election commitments, the Government is providing additional funding of $169.5 million over four years and $81.5 million per annum ongoing from 2022-23 for 400 police officers in high priority areas across the State.

This forms part of the Government’s commitment to an additional 535 frontline police and operational specialists in priority areas across the State, which includes 30 counter-terrorism police officers and 20 police officers announced in the 2017-18 Budget. Further details can be found in this section and Chapter 3 Capital Measures.

105

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Tackling Alcohol Fuelled Violence - Safe Night Precincts		2,500		5,000		5,000		5,000		2,500

Delivering on our election commitments, the Government has provided increased funding of $20 million over five years to continue to support the presence of police officers in Safe Night Precincts.

This forms part of the Government’s Tackling Alcohol Fuelled Violence Program. Further details of this funding can be found in the Queensland Corrective Services, Department of Communities, Disability Services and Seniors and Department of Justice and Attorney-General sections of this chapter.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
GPS Tracking of Defendants on Bail		749		2,572		—		—		—

The Government has provided additional funding of $3.3 million over two years to provide courts the capacity to impose a condition under the Bail Act 1980 for an electronic tracking device to be worn by defendants released on bail.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Additional QLiTE Devices		—		1,950		1,970		2,000		—

Delivering on our election commitments, the Government is providing increased funding of $5.9 million over three years to provide frontline police officers with an additional 1,400 QLiTE mobile tablet devices.

106

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Camera Detected Offence Program		—		794		1,240		1,690		2,247

The Government is providing increased funding of $6 million over four years and $2.2 million per annum ongoing to reduce incidents of road trauma.

The Government is providing total increased funding of $166.6 million over four years across departments as part of the Camera Detected Offence Program. Further funding can be found in the Department of Transport and Main Roads and Queensland Treasury sections of this chapter. The capital component of this measure can be found in the Queensland Police Service and Department of Transport and Main Roads sections of Chapter 3 Capital Measures.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
National Disability Insurance Scheme - National Clearance Database		—		400		—		—		—

The Government is providing additional funding of $400,000 in 2018-19 for the development of a Queensland Police Service electronic interface with the National Clearance Database for the National Disability Insurance Scheme (NDIS). From 1 July 2019, this database will contain a register of cleared and excluded workers from all jurisdictions, reducing the potential for providers to employ workers who pose an unacceptable risk of harm to NDIS participants.

Total funding associated with the National Clearance Database is $1.7 million over three years. Further funding can be found in the Department of Communities, Disability Services and Seniors section of this chapter and the Queensland Police Service section of Chapter 3 Capital Measures.

107

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Domestic and Family Violence Response - Specialist Domestic and Family Violence Courts		—		263		878		899		919

The Government is providing additional funding of $3 million over four years and $919,000 per annum ongoing to support the expansion of the Townsville Specialist Domestic and Family Violence (DFV) Court (including circuit courts in Mount Isa and Palm Island) to include criminal DFV matters.

Total funding for the expansion of the Townsville Specialist DFV Court is $8.1 million over four years and $2.3 million per annum ongoing. Further funding can be found in the Department of Justice and Attorney-General, Queensland Corrective Services and the Department of Child Safety, Youth and Women sections of this chapter.

108

Budget Measures 2018-19

Queensland Treasury

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Expansion of the Jobs and Regional Growth Fund		—		20,000		—		—		—

The Government is providing increased funding of $20 million in 2018-19 for the Jobs and Regional Growth Fund to continue the Jobs and Regional Growth Package. The fund will help facilitate private sector projects which create employment and economic growth opportunities in regional Queensland by focussing on regions with higher than average unemployment. This increase brings the total funding to $150 million over three years from 2016-17.

Queensland Treasury and the Department of State Development, Manufacturing, Infrastructure and Planning are jointly responsible for the fund. This initiative can also be found in the Department of State Development, Manufacturing, Infrastructure and Planning section of this chapter.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Camera Detected Offence Program		—		1,703		2,406		2,622		2,843

The Government is providing increased funding of $9.6 million over four years to reduce incidents of road trauma.

The Government is providing total increased funding of $166.6 million over four years across departments as part of the Camera Detected Offence Program. Further funding can be found in the Queensland Police Service and Department of Transport and Main Roads sections of this chapter. The capital component of this measure can be found in the Queensland Police Service and Department of Transport and Main Roads sections of Chapter 3 Capital Measures.

109

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Extension to First Home Owners’ Grant		19,600		32,000		—		—		—

Delivering on our election commitments, the Government has provided increased funding of $51.6 million over two years to extend the temporary increase in the Queensland First Home Owners’ Grant from $15,000 to $20,000 for six months between 1 January 2018 and 30 June 2018 inclusive, for the purchase or construction of new dwellings valued at less than $750,000.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Move Up In The World - Attracting Business Investment and Migration to Queensland		1,000		—		—		—		—

The Government has provided additional funding of $1 million in 2017-18 for the Move Up In The World campaign. This is a targeted communication campaign to encourage interstate business investment and migration to Queensland for the Government’s priority industries.

110

Budget Measures 2018-19

3 Capital Measures

Introduction

The following tables present the relevant portfolio capital measures relating to decisions taken since the 2017-18 Budget. This does not represent the full amount of additional funding provided to agencies since the 2017-18 Budget. For further explanation, refer to Explanation of Scope and Terms in Chapter 1.

111

Budget Measures 2018-19

Department of Agriculture and Fisheries

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Restoration of Jimna Fire Tower		—		1,000		500		—		—

The Government is providing additional funding of $1.5 million over two years to restore the Jimna fire tower that is listed on the Queensland Heritage Register.

112

Budget Measures 2018-19

Department of Child Safety, Youth and Women

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Information and Communication Technology (ICT) Infrastructure Investment		—		2,800		—		—		—

The Government is providing increased funding of $2.8 million in 2018-19 to continue the Social Investment ICT Program and Child and Family Services Information and Communication Technology Program.

113

Budget Measures 2018-19

Department of Communities, Disability Services and Seniors

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Supporting Veterans - The Oasis Townsville Defence Hub		2,600		—		—		—		—

Delivering on our election commitments, the Government has provided additional funding of $2.6 million in 2017-18 to refurbish a government-owned building for The Oasis Townsville to provide a one-stop shop for welfare support and employment transition services to ex-Australian Defence Force personnel and their families.

This forms part of the Government’s total funding package of $4.3 million for the Supporting Veterans initiative. Further funding can be found in the Department of Communities, Disability Services and Seniors and the Department of the Premier and Cabinet sections of Chapter 2 Expense Measures.

114

Budget Measures 2018-19

Department of Education

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Advancing Clean Energy Schools		2,000		47,000		48,000		—		—

Delivering on our election commitments, the Government has provided additional funding of $97 million over three years for solar and energy efficiency measures for clean energy schools.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Building Future Schools Fund		—		30,000		164,400		22,080		51,520

Delivering on our election commitments, the Government is providing additional funding of $308 million over six years from 2018-19, bringing total funding to $808 million across seven years to deliver world class learning environments for students and to address enrolment growth pressures in state schools.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Renewing our Schools		—		15,000		70,000		70,000		80,000

The Government is providing additional funding of $235 million over four years to substantially refurbish and upgrade 17 high schools across the State, with each school to receive at least $10 million.

115

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
School Renewal		—		10,000		15,600		—		—

The Government is providing additional funding of $25.6 million over two years to deliver renewal works at 31 state schools.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Implementation of the Labour Hire Licensing Act 2017		716		—		—		—		—

Delivering on our election commitments, the Government has provided additional funding of $716,000 in 2017-18 for the implementation of an online licensing system to manage the mandatory business licensing scheme associated with the Labour Hire Licensing Act. The expense component of this measure can be found in Chapter 2 Expense Measures. The revenue component of this measure can be found in Chapter 4 Revenue Measures.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Yarrabilba State School Integrated Children’s Services Community Hub		3,600		—		—		—		—

The Government has provided additional funding of $3.6 million in 2017-18 to meet the needs of the rapidly growing community of Yarrabilba. When it is completed in August 2018, the Hub will offer child and maternal health services, children’s activities such as playgroups and consulting rooms for visiting specialists.

116

Budget Measures 2018-19

Department of Employment, Small Business and Training

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Advancing Our Training Infrastructure		—		30,000		30,000		25,000		—

Delivering on our election commitments, the Government is providing additional funding of up to $85 million over three years in the redevelopment, refurbishment and expansion of six identified high-need TAFE facilities. Funding is provided for training sites at Pimlico, Cairns, Mount Gravatt and Toowoomba, and other training infrastructure within the regions of the Gold Coast and Redlands.

117

Budget Measures 2018-19

Department of Environment and Science

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
New Performing Arts Venue at the Queensland Performing Arts Centre		—		5,000		50,000		50,000		20,000

The Government is providing additional funding of $125 million over four years to build a new performing arts venue at the Queensland Performing Arts Centre, benefitting Queensland artists and audiences.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Queensland Cultural Centre - Critical Infrastructure Asset Renewal		—		4,928		3,522		—		—

The Government is providing additional funding of $8.5 million over two years to provide critical infrastructure upgrade works at the Queensland Museum and to install two further cooling towers within the central energy plant at the Queensland Cultural Centre, South Bank.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Queensland Cultural Centre - Electricity Supplementation and Future Energy Efficiency		—		1,800		3,150		4,050		—

The Government is providing additional funding of $9 million over three years to implement sustainability and energy efficiency measures at the Queensland Cultural Centre, South Bank, to improve energy performance whilst lowering energy consumption and greenhouse gas emissions. The expense component of this measure can be found in Chapter 2 Expense Measures.

118

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Critical Infrastructure Asset Renewal and Equipment Replacement at the Queensland Performing Arts Centre		—		1,500		1,800		—		—

The Government is providing additional funding of $3.3 million over two years to address urgent and unavoidable critical infrastructure works at the Queensland Performing Arts Centre.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
National Parks Harsh Environment Fire Vehicles		—		200		—		—		—

The Government is providing increased funding of $200,000 in 2018-19 towards accessory fitouts for vehicles operating in harsh environments in Queensland’s Protected Area Estate to ensure the continued safety of staff, property and the community. The expenses component of this measure can be found in Chapter 2 Expense Measures.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Government Action on North Stradbroke Island (Minjerribah)		1,690		113		—		—		—

The Government has provided increased funding of $1.8 million over two years for the expansion of the protected area over North Stradbroke Island (Minjerribah) as part of joint management arrangements with traditional owners to construct visitor and management infrastructure.

The expense components of this measure can be found in the Department of Environment and Science, Department of Natural Resources, Mines and Energy and Department of State Development, Manufacturing, Infrastructure and Planning sections of Chapter 2 Expense Measures.

119

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Protected Area Estate - Acquisition		—		—		—		—		—

The Government is providing additional funding of $9.5 million in 2018-19, held centrally to support acquisition of properties of high conservation value to be added to Queensland’s Protected Area Estate. The Government is also providing additional funding of $155,000 in 2019-20, held centrally to provide new infrastructure at acquired properties. The expense component of this measure can be found in Chapter 2 Expense Measures.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Protected Area Estate - Expansion		6,200		—		—		—		—

The Government has provided increased funding of $6.2 million in 2017-18 to acquire property of high conservation value and undertake track works, signage infrastructure and fire break construction necessary for its addition to the Queensland Protected Area Estate. The expense component of this measure can be found in Chapter 2 Expense Measures.

120

Budget Measures 2018-19

Department of Housing and Public Works

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Thomas Dixon Centre Refurbishment		—		9,500		4,000		—		—

The Government is providing additional funding of $8 million over two years towards the $35 million expansion of the Thomas Dixon Centre, to provide enhanced performance facilities for Queensland Ballet. The Government is also allocating an additional $5.5 million to manage costs and associated works required to maintain and preserve the heritage listed centre.

This is part of an overall package of $14 million over two years towards the refurbishment of the Thomas Dixon Centre. The expense component of this measure can be found in Chapter 2 Expense Measures.

121

Budget Measures 2018-19

Department of Innovation, Tourism Industry Development and the Commonwealth Games

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Great Keppel Island Recovery Package		5,000		10,000		10,000		—		—

Delivering on our election commitments, the Government has provided additional funding of $25 million over three years for a Great Keppel Island Recovery Package to deliver major tourism infrastructure improvements such as power and water connections to the mainland.

122

Budget Measures 2018-19

Department of Justice and Attorney-General

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Blue Card Services ‘No Card, No Start’		—		2,520		709		—		—

Delivering on our election commitments, the Government is providing additional funding of $3.2 million over two years to implement an online Blue Card application system as part of the Government’s ‘No Card, No Start’ initiative. Funding of $6.6 million over two years will also be reprioritised by the department internally to fund this measure, bringing total funding to $9.8 million over two years. The expense component of this measure can be found in Chapter 2 Expense Measures.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Crime and Corruption Commission - Digital Investigative and Information Security Services		—		1,295		354		—		—

The Government is providing additional funding of $1.6 million over two years to enhance the processing of digital evidence and to provide for a contemporary information security platform. The expense component of this measure can be found in Chapter 2 Expense Measures.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Anti-Discrimination Commission Queensland - Human Rights Act for Queensland		—		100		100		—		—

Delivering on our election commitments, the Government is providing additional funding of $200,000 over two years for office and system enhancements required to support the operation and administration of a Human Rights Act. The expense component of this measure can be found in Chapter 2 Expense Measures.

123

Budget Measures 2018-19

Department of Local Government, Racing and Multicultural Affairs

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Implementing More Effective Funding Grants to Local Government		—		1,300		—		—		—

The Government is providing additional funding of $1.3 million in 2018-19 to develop a new grants management system to improve and simplify the administration of grants to local government. This measure progresses the recommendations from the Review of Grants to Local Government: Current and future state assessments. The expense component of this measure can be found in Chapter 2 Expense Measures.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Northern Peninsula Area Water Supply System - Replacement of Asbestos Cement Pipelines		—		1,000		1,000		1,000		1,000

The Government is providing additional funding of $5 million over five years to safeguard the security of the Northern Peninsula Area Water Supply System through the replacement of existing asbestos cement pipelines.

124

Budget Measures 2018-19

Department of Natural Resources, Mines and Energy

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Rookwood Weir		—		66,000		83,000		126,000		77,000

The Government is providing increased funding of $176 million over four years, which is being matched by the Australian Government capital contribution of $176 million to support the construction of the Rookwood Weir on the Fitzroy River. This will provide drought contingency supplies for Rockhampton, Gladstone and Yeppoon and support agriculture.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Glen Niven Dam		—		2,500		—		—		—

The Government is providing additional funding of $2.5 million in 2018-19 to upgrade the Glen Niven Dam to meet dam safety requirements. The department has also internally reprioritised funding of $2.5 million, bringing total funding to $5 million.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Linc Energy Mine Site		—		—		—		—		—

Funding of $1.6 million is being internally reprioritised to 2018-19 by the department to provide ongoing site security, management and remediation of infrastructure works at the Linc site. Further funding can be found in Chapter 2 Expense Measures.

125

Budget Measures 2018-19

Department of State Development, Manufacturing, Infrastructure and Planning

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Growth Area and Regional Infrastructure Investment Fund		—		—		—		—		—

The Government is providing additional funding of $40 million over two years from 2018-19, held centrally, to invest in infrastructure that improves prosperity and liveability for Queenslanders living in outer urban and regional Queensland. A core focus of the program is accelerating new, or upgrading existing infrastructure that leads and supports growth and productivity.

126

Budget Measures 2018-19

Department of Transport and Main Roads

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
M1 Pacific Motorway - Eight Mile Plains to Daisy Hill		—		17,000		28,500		70,000		201,000

The Government is providing additional funding of $366.5 million over five years towards delivering the $749 million Eight Mile Plains to Daisy Hill project. The Australian Government has committed $100 million to 2021-22.

This brings total additional State Government funding for new jointly-funded planning and upgrades on the M1 Pacific Motorway to $897.5 million. Further funding for the planning of future upgrades to the M1 Pacific Motorway can be found in Chapter 2 Expense Measures.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
M1 Pacific Motorway - Varsity Lakes to Tugun		—		5,000		15,000		70,000		220,000

The Government is providing additional funding of $515 million over five years (including $206 million as part of an election commitment) towards delivering the $1.03 billion Varsity Lakes to Tugun upgrade. The Australian Government has committed $55 million to 2021-22.

This brings total additional State Government funding for new jointly-funded planning and upgrades on the M1 Pacific Motorway to $897.5 million. Further funding for the planning of future upgrades to the M1 Pacific Motorway can be found in Chapter 2 Expense Measures.

127

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
New Public Transport Ticketing System		—		89,198		104,427		87,891		89,544

The Government is providing $371.1 million over four years to develop the new public transport public ticketing system in Queensland. Further funding can be found in Chapter 2 Expense Measures.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Beerburrum to Nambour Rail		—		14,407		59,470		143,963		142,951

The Government is providing additional funding of $160.8 million over four years towards the Beerburrum to Nambour rail duplication project. The Australian Government has provided an initial $390 million over five years towards this measure.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Smithfield Bypass		4,222		13,982		25,330		25,466		—

The Government has provided additional funding of $69 million over four years from the State Infrastructure Fund for the Smithfield Bypass. This will bring total funding for the project to $152 million. The Smithfield Bypass will deliver a new 3.8 kilometre-long road running parallel with the Captain Cook Highway to provide an alternative route between the McGregor Road intersection and Yorkeys Knob Road intersection.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Station Upgrades including Park ’n’ Ride facilities		400		6,600		4,305		14,195		—

Delivering on our election commitments, the Government has provided increased funding of $25.5 million over four years to significantly expand park’n’ride capacity at Greenbank and Eight Mile Plains bus stations.

128

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Northern Transitway		200		5,800		10,000		30,000		7,000

Delivering on our election commitments, the Government has provided additional funding of $53 million over five years for the Northern Transitway to deliver continuous dedicated bus lanes during peak hours from Chermside to Kedron - while retaining all existing lanes.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Centenary Motorway Upgrade		2,000		5,000		20,000		21,000		—

The Government has provided additional funding of $48 million over four years from the State Infrastructure Fund for the Centenary Motorway upgrade bringing total funding to $65 million. The Sumners Road Interchange upgrade will include the installation of traffic signals at two intersections to replace existing roundabouts and construction of a new two lane eastbound bridge, with active transport options including cycle lanes, shared paths and crossings.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Western Roads Upgrade Supplement		—		5,000		—		—		—

The Government is providing additional funding of $5 million in 2018-19 for upgrades to roads in western Queensland to assist local governments to maintain local workforces. This is in addition to the $140.6 million budgeted in the department’s 2018-19 capital program.

129

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Marine Infrastructure Fund		—		4,600		25,400		—		—

Delivering on our election commitments, the Government is providing increased funding of $30 million over two years to boost the Marine Infrastructure Fund. Projects will include boat ramps, barge landings, floating walkways and channel deepening.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
M1 Action Plan - Oxenford (Exit 57) Interchange Upgrade		—		3,000		12,000		10,000		—

Delivering on our election commitments, the Government is providing additional funding of $25 million over three years for the upgrade of the Oxenford (Exit 57) interchange on the Pacific Motorway.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Stafford and South Pine Road Intersection Upgrade		250		2,250		15,000		8,500		—

Delivering on our election commitments, the Government has provided additional funding of $26 million over four years to widen the Everton Park Link Road to four lanes between South Pine Road, north of Kedron Brook and Stafford Road, east of Mountbridge Street.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Camera Detected Offence Program		—		2,000		2,350		67,350		55,350

The Government is providing increased funding of $127.1 million over four years to improve the safety of the sections of state-controlled roads where accidents happen most frequently.

The Government is providing total increased funding of $166.6 million over four years across departments as part of the Camera Detected Offence Program. Further funding can be found in the Queensland Police Service section of this chapter. The expense component of this measure can be found in the Department of Transport and Main Roads, Queensland Police Service and Queensland Treasury sections of Chapter 2 Expense Measures.

130

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Mt Lindesay Highway (Johanna St intersection)		200		1,800		12,000		6,000		—

Delivering on our election commitments, the Government has provided additional funding of $20 million over four years to widen the Mount Lindesay Highway to four lanes from Camp Cable Road through to the Johanna/Tamborine Street intersection. These works will also raise the road for flood proofing.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Gold Coast Seaway Sand Bypass System - Jetty Deck Upgrade		—		1,500		1,850		—		—

The Government is providing additional funding of $3.4 million over two years to upgrade the existing jetty deck to allow modern cranes to operate within appropriate safety standards and enable the continued maintenance of the Gold Coast Seaway Sand Bypass System.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Roads Renewal Fund		—		1,000		9,000		10,000		15,000

Delivering on our election commitments, the Government is providing additional funding of $35 million over four years for the Roads Renewal Fund. Projects include fixing the Ruthven Street and North Street intersection at North Toowoomba and installation of traffic lights and slip lanes at the intersection of Peachester Road and Old Gympie Road outside the Beerwah State School.

131

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Construction of Petrie Roundabout Project		—		—		10,500		12,000		—

The Government will provide increased funding of $22.5 million over two years to upgrade the intersection of Anzac Avenue, Dayboro Road and Gympie Road (the Petrie Roundabout). This brings total funding for the Petrie Roundabout to $30 million over two years.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Future Proofing The Bruce		—		—		30,500		98,000		125,000

Delivering on our election commitments, the Government will provide additional funding of $253.5 million over three years for priority projects to be delivered for Bruce Highway upgrades. The expense component of this initiative can be found in Chapter 2 Expense Measures.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Gold Coast Train Stations		—		—		—		25,000		50,000

The Government will provide additional funding of $120 million over three years to build three new train stations at Pimpama, Helensvale North and Worongary-Merrimac. The three new stations will allow more Gold Coast residents to benefit from the 3,150 extra peak-hour seats being provided by increased rail services on the Gold Coast rail line, which will help take pressure off the M1 motorway. Planning work for these stations will be progressed in 2018-19 at an estimated cost of $3 million.

132

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Mount Isa to Townsville Rail Line		—		—		—		10,000		40,000

Delivering on our election commitments, the Government will provide increased funding of $50 million over two years, taking total funding to $380 million over the next five years, to help repair and maintain the Townsville to Mount Isa rail line.

133

Budget Measures 2018-19

Legislative Assembly of Queensland

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Parliament House Fire Protection System		—		3,994		—		—		—

The Government is providing increased funding of $4 million in 2018-19 to fund completion of a fire protection system in the heritage listed Parliament House building.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
2017 Electoral Boundary Redistribution and Election		775		1,000		—		—		—

The Government has provided additional funding of $1.8 million over two years for office accommodation costs associated with the 2017 Electoral Boundary Redistribution. The expense component of this measure can be found in Chapter 2 Expense Measures.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Infrastructure and Accommodation Critical Works Program		200		1,000		400		—		—

The Government has provided additional funding of $1.6 million over three years to complete relocation of existing leased electorate offices across Queensland which are presenting high-risk non-compliance issues in relation to building access and security.

134

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Parliamentary Annexe Lift Upgrade Program		1,205		—		—		—		—

The Government has provided increased funding of $1.2 million in 2017-18 to complete the upgrade of the Parliamentary Annexe low-rise lifts and service lift. The expense component of this measure can be found in Chapter 2 Expense Measures.

135

Budget Measures 2018-19

Public Safety Business Agency

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Queensland Government Air Aircraft Maintenance and Compliance		—		3,728		—		—		—

The Government is providing additional funding of $3.7 million in 2018-19 for mandatory maintenance of Queensland Government Air’s (QGAir) rotary and fixed wing aircraft. This funding enables QGAir to continue to support the emergency helicopter network across the State for search and rescue, natural disasters, police and aeromedical operations and provide fixed wing transport services for police, government and organ transfer. The expense component of this measure can be found in Chapter 2 Expense Measures.

136

Budget Measures 2018-19

Queensland Corrective Services

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Capricornia Correctional Centre		—		22,000		19,000		—		—

The Government is providing increased funding of $41 million over two years to increase the already planned expansion of Capricornia Correctional Centre by 84 cells to a total of 348 cells. Total capital funding for the project amounts to $241 million over five years.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Minor Capital Works		—		5,500		5,000		—		—

The Government is providing increased funding of $10.5 million over two years to upgrade and maintain infrastructure within correctional centres.

137

Budget Measures 2018-19

Queensland Fire and Emergency Services

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Queensland Fire and Emergency Services Facility - Maleny		—		1,050		1,000		1,450		(500	)

Delivering on our election commitments, the Government is providing an additional $3 million for the construction of a new fire and emergency services facility in Maleny. This will provide a fit for purpose facility that will enable Queensland Fire and Emergency Services to provide responsive services to the growing Maleny and Sunshine Coast Hinterland community.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Queensland Fire and Emergency Services Facilities - Yarrabilba and surrounds		—		1,000		1,000		3,000		—

Delivering on our election commitments, the Government is providing additional funding of $5 million over three years for equipped fire and emergency services facilities to service the community of Yarrabilba and surrounds. The initiative will enable the upgrade of the existing facility in Logan Village and the completion of a new facility at Yarrabilba.

138

Budget Measures 2018-19

Queensland Health

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Building Better Hospitals		11,000		52,280		87,270		202,000		185,700

Delivering on our election commitments, the Government has provided increased funding of $570.8 million over six years, including $32.5 million in 2022-23, to enhance public hospital capacity and services in the south east Queensland growth corridor, including for redevelopments at the Logan, Caboolture and Ipswich hospitals and to commence planning for the Wide Bay region.

Total funding included in the Building Better Hospitals package is $679 million. This includes $103.2 million that was provided in the 2017-18 Budget for detailed planning and preparatory works for the Logan Caboolture and Ipswich hospitals, and $5 million for the refurbishment of Cancer Council Queensland Lodges. The expense component of this measure can be found in Chapter 2 Expense Measures.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Rockhampton Drug Treatment and Rehabilitation Facility		1,500		2,600		5,400		—		—

Delivering on our election commitments, the Government has provided additional funding of $9.5 million over three years for a new 42-bed residential drug rehabilitation and treatment facility in Rockhampton. The expense component of this measure can be found in Chapter 2 Expense Measures.

139

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Redland Hospital		1,730		—		—		—		—

Delivering on our election commitments, the Government has provided additional funding of $1.7 million in 2017-18 to upgrade the Redland Hospital, including a new water birthing suite and an expansion of the emergency department.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Health Technology Equipment Replacement Program		—		50,000		—		—		—

The Government is providing increased funding of $50 million in 2018-19 to support the replacement of essential medical equipment under the Health Technology Equipment Replacement Program, such as computed tomography (CT) scanners, magnetic resonance imaging (MRI) scanners and surgical equipment.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Redcliffe Hospital Carpark		—		7,508		24,098		5,174		—

The Government is providing additional funding of $36.8 million over three years to build a new four-storey, 604-bay carpark at Redcliffe Hospital to improve car parking access for patients, carers and their families.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Youth Justice - Specialist Mental Health Youth Forensic Assessment		—		—		—		—		—

Funding of $330,000 in 2018-19 is being internally reprioritised by the department to improve mental health assessments of young people in the youth justice system.

This forms part of the Government’s total funding of $40.7 million over four years ($22.3 million new funding and $18.4 million reprioritised funding) for youth justice support measures. Further details can be found in the Department of Child Safety, Youth and Women, Department of Education, Department of Housing and Public Works and Queensland Health sections of Chapter 2 Expense Measures.

140

Budget Measures 2018-19

Queensland Police Service

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Camera Detected Offence Program		—		950		2,150		1,150		1,900

The Government is providing increased funding of $6.2 million over four years and $700,000 per annum ongoing to reduce incidents of road trauma.

The Government is providing total increased funding of $166.6 million over four years across departments as part of the Camera Detected Offence Program. Further funding can be found in the Department of Transport and Main Roads section of this chapter. The expense component of this measure can be found in the Queensland Police Service, Department of Transport and Main Roads and Queensland Treasury sections of Chapter 2 Expense Measures.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Police Officers		—		600		600		600		600

Delivering on our election commitments, the Government is providing additional funding of $2.4 million over four years to purchase additional vehicles to maintain a 24-hour policing presence. The expense component of this measure can be found in Chapter 2 Expense Measures.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
National Disability Insurance Scheme - National Clearance Database		—		100		—		—		—

The Government is providing additional funding of $100,000 in 2018-19 for the development of a Queensland Police Service electronic interface with the National Clearance Database for the National Disability Insurance Scheme (NDIS). From 1 July 2019, this database will contain a register of cleared and excluded workers from all jurisdictions, reducing the potential for providers to employ workers who pose an unacceptable risk of harm to NDIS participants.

Total funding associated with the National Clearance Database is $1.7 million over three years. Further funding can be found in the Department of Communities, Disability Services and Seniors and Queensland Police Service sections of Chapter 2 Expense Measures.

141

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Increased Counter-Terrorism Capability		1,260		—		—		—		—

Delivering on our election commitments, the Government has provided additional funding of $1.3 million in 2017-18 to purchase 22 vehicles and specialist tactical equipment. The expense component of this measure can be found in Chapter 2 Expense Measures.

142

Budget Measures 2018-19

Queensland Treasury

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Business Development Fund		—		20,000		20,000		—		—

The Government is providing increased funding of $40 million over two years to continue to support the growth of angel and venture capital funding available to Queensland businesses, thereby strengthening Queensland’s entrepreneurial and start-up eco-system. The fund will continue to support the growth of innovative businesses and the creation of high-value jobs, as well as attracting both interstate and international investment in Queensland.

143

Budget Measures 2018-19

4 Revenue Measures

Introduction

The following tables present the relevant portfolio revenue measures relating to decisions taken since the 2017-18 Budget. For further explanation, refer to Explanation of Scope and Terms in Chapter 1.

144

Budget Measures 2018-19

Department of Agriculture and Fisheries

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Veterinary Surgeons Regulation 2016		—		201		208		215		223

The Government is increasing fees under the Veterinary Surgeons Regulation 2016 for specialist veterinarians, retired veterinarians and new graduates to achieve both full cost recovery and better service delivery by the Veterinary Surgeons Board of Queensland.

	2017-18 $‘000		2018-19 $‘000			2019-20 $‘000			2020-21 $‘000			2021-22 $‘000
Queensland Racing Integrity Commission (QRIC) - Reducing Red Tape through a New Licence Model		—		(125	)		(125	)		(125	)		(122	)

The Government is moving from an annual to a three year licensing model for trainers across the three codes of racing (greyhounds, thoroughbreds and harness).

The new licensing model will provide greater standardisation, more convenience for participants and allow for improved integrity standards.

145

Budget Measures 2018-19

Department of Education

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Implementation of the Labour Hire Licensing Act 2017		3,071		3,071		3,071		3,071		3,071

The Government has introduced a new, tier-dependent fee of $1,000, $3,000 or $5,000 for labour hire providers operating in Queensland when they apply, renew or restore a licence under the Labour Hire Licensing Act. The expense component of this measure can be found in Chapter 2 Expense Measures. The capital component of this measure can be found in Chapter 3 Capital Measures.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Homestay Regional Fees for International Students Program and Study Tours		—		311		328		349		370

The Government is aligning the weekly fee for homestay accommodation provided to international students studying in regional Queensland from $241 in 2018 to $302 in 2019 to match the metropolitan homestay fee. Based on forecasted 2019 enrolments for both the International Students Programs and Study tours, it is estimated that the increase in homestay fees will deliver an approximate additional $311,000 revenue in 2018-19. The increase in the homestay fee will be fully passed on to regional Queensland families.

146

Budget Measures 2018-19

Department of Environment and Science

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Waste Disposal Levy		—		100,724		405,657		408,004		407,831

The Government is introducing a Waste Disposal Levy of $70 per tonne (higher for regulated waste) increasing $5 per annum, commencing in the first quarter of 2019. Introducing a waste levy was a key recommendation of the recent investigation into the transport of waste into Queensland.

Proceeds from the waste levy will be used for waste programs, environmental priorities and community purposes. In particular, $100 million will be allocated over three years to support Queensland’s resource recovery and recycling industry through the Resource Recovery Industry Development Program. The program will facilitate private sector and local government projects delivering innovative solutions to the problem of waste going to landfill and create jobs in emerging industries.

The Government will provide an annual advance on levy charges to those local governments that dispose of municipal waste in the levy zone. In 2018-19, $32 million has been provided for this purpose. This will avoid direct costs to households from introduction of the waste levy.

The revenue figures shown above represent gross revenue. The spending associated with the Resource Recovery Industry Development Program and Advance Payments to Councils has not been factored into the figures shown for this measure.

Between 2018-19 and 2021-22 it is expected that over 70% of revenue generated through the waste levy will be allocated to Advance payments to councils, scheme start up and operational costs, industry programs and other environmental priorities. Surplus revenue from the levy will benefit the entire Queensland community by providing funding for schools, hospitals, transport infrastructure and frontline services.

Further details can be found in the Department of Environment and Science, Department of Local Government, Racing and Multicultural Affairs and Department of State Development, Infrastructure and Planning sections of Chapter 2 Expense Measures.

147

Budget Measures 2018-19

Department of Natural Resources, Mines and Energy

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Extending existing drought relief arrangements		—		—		—		—		—

The Government is providing fee and rental relief of up to $4.2 million in 2018-19 as part of the extension of drought relief arrangements. This includes rebates for land rental and the waiving of water licence fees for drought affected landholders and lessees. The estimate is dependent on drought declarations and the demand for drought assistance.

The Drought Assistance Package is a total of up to $34.6 million in 2018-19 to support drought affected communities across the State. Funding can be found in the Department of Agriculture and Fisheries, and Department of Natural Resources, Mines and Energy sections of Chapter 2 Expense Measures.

148

Budget Measures 2018-19

Department of Transport and Main Roads

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Hazard Perception Test Fee		—		—		1,330		1,369		1,408

The Government will introduce a one off charge of $37.05 for entry into the hazard perception test (HPT) environment until the customer has successfully completed the test. This represents an increase for the motor vehicle HPT and a new charge for the introduction of HPT for motorcycles. A person will not be able to obtain a P1 licence and drive unsupervised until they have passed the HPT. This should improve road safety outcomes and the delivery of a nationally uniform test may have road safety benefits for a group of licensed riders that are over represented in the road toll.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Learner Licence Discount for Photo Identification Card (PIC) Holders		—		(26)		(66)		(141)		(149)

The Government is introducing a $40 discount off the learner licence fee for any person who applies for a Queensland learner licence and already holds a Photo Identification Card (PIC). This means a person with a PIC would only be required to pay $126.10 instead of $166.10 for a three year learner licence.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Reduced Registration for Historic Motorcycles		—		(100)		(100)		(100)		(100)

The Government is reducing registration fees for vintage motorcycle owners by approximately 70%. The reduced registration fees are to be implemented for eligible motorcycles from 1 July 2018.

149

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000			2019-20 $‘000			2020-21 $‘000			2021-22 $‘000
Heavy Vehicle Plate Fee		—		(147	)		(152	)		(157	)		(162	)

The Government is introducing a national heavy vehicle number plate that will enable the efficient movement of heavy vehicles across Australia and will require a consistent fee. It has been determined that from 1 July 2018, the national heavy vehicle plate fee will be $25. Given the current plate fee in Queensland is $29.20, the expected negative revenue impact of introducing a $25 fee for the national heavy vehicle plate would be approximately $618,000 over four years.

	2017-18 $‘000			2018-19 $‘000			2019-20 $‘000			2020-21 $‘000			2021-22 $‘000
Transport Concessions for Veterans		(228	)		(488	)		(527	)		(567	)		(608	)

Delivering on our election commitments, the Government has provided half-price public transport for veterans by expanding the current transport discount to the 19,000 Department of Veterans’ Affairs (DVA) white card holders under 64 - those who have war or service related injuries or disease.

150

Budget Measures 2018-19

Queensland Treasury

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Point of Consumption Betting Tax		—		70,950		96,323		98,501		101,184
Less: Non-discretionary allocation of proceeds1		—		—		—		—		—
Until allocation of proceeds		—		70,950		96,323		98,501		101,184

1. Some allocations are subject to commercial-in-confidence discussions/negotiation, including the quantum of the commitments to compensation payments to Racing Queensland for impacts from the implementation of the point of consumption betting tax.

The Government is introducing a point of consumption betting tax from 1 October 2018 (betting tax).

While this 2017-18 Mid-Year Fiscal and Economic Review (MYFER) measure applied to online wagering only, the betting tax will now apply to all betting operators licensed in Australia and will be imposed at a rate of 15% of net wagering revenue earned from bets placed by customers in Queensland. This primarily accounts for the changed forecast since the 2017-18 MYFER.

Smaller betting operators may not incur a betting tax liability as the rate of 15% applies to taxable wagering revenue exceeding an annual tax-free threshold amount of $300,000. No tax will be paid on a betting operator’s revenue up to and including $300,000 in a financial year. Reconciliation against the threshold in the annual return, and refund provisions for any overpayment, will ensure this.

Government is consulting with the racing industry and other stakeholders in the lead up to the 1 October implementation regarding appropriate measures to be funded from the point of consumption betting tax revenues including support for the industry, delivery of initiatives to enhance responsible gambling and community programs.

	2017-18 $‘000		2018-19 $‘000			2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Payroll Tax Apprentice and Trainee Rebate		—		(26,000	)		—		—		—

The Government is extending until 30 June 2019 the 50% payroll tax rebate on the exempt wages of apprentices and trainees. This is part of Government commitments to address youth unemployment and building Queensland’s skills base, particularly in regional Queensland.

151

Budget Measures 2018-19

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Land Tax increase to rate on holdings above $10 million by 0.5 percentage points		—		71,000		76,000		80,000		84,400

The Government is increasing the rate of land tax by 0.5 percentage points for owners of land who have aggregated landholdings with a taxable value above $10 million. From the 2018-19 financial year onwards, an increased rate of 2.25% for resident individuals and 2.5% for companies, trustees and absentees will apply to the portion of an owner’s taxable landholdings that exceeds $10 million.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Additional Foreign Acquirer Duty increase to 7%		—		33,000		33,000		33,000		33,000

The Government is increasing the rate of Additional Foreign Acquirer Duty (AFAD) from 3% to 7%. AFAD is an additional amount of duty payable on relevant transactions that are liable for transfer duty, landholder duty or corporate trustee duty which involve a foreign person directly or indirectly acquiring certain Queensland residential land. The increased rate will apply to liabilities arising on or after 1 July 2018.

	2017-18 $‘000		2018-19 $‘000		2019-20 $‘000		2020-21 $‘000		2021-22 $‘000
Premium Motor Vehicle Duty		—		24,020		25,250		26,490		27,870

The Government is increasing the amount of vehicle registration duty payable on vehicles valued above $100,000 by $2 per $100 of dutiable value (excludes heavy vehicles). The premium motor vehicle duty will apply from 1 July 2018.

152

Queensland Budget 2018-19    Budget Measures    Budget Paper No.4

Queensland Budget 2018-19

Budget Measures  Budget Paper No.4

budget.qld.gov.au