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Queensland Economic Advocacy Solutions

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The State Election Result and what it means for you

It is with pleasure that I provide a 'one stop shop' on everything you may need to know about the recent State Election result and how it might impact on you.  In short Annastacia Palaszczuk is the first female premier in Australia to win back to back elections with Queensland Labor capturing 48 seats (a majority of two seats).  Other major points to note include One Nation failed to fire, compulsory preferential voting had a profound impact on the result and the major parties received the lowest primary vote recorded.

Major influencers appeared to be a rejection of the LNP's preparedness to work with One Nation in a minority government, a further rejection of the State Government that was in power between 2012-15 coupled with a fear campaign from Queensland Labor on the cuts and chaos that would occur under an LNP / One Nation minority Government. To some extent the Adani Carmichael Project appeared to galvanise the Green vote in inner Brisbane. 

The misses in this Election for me were tackling government spending, debt and reinvesting in infrastructure.  I do not believe the election result was an endorsement of the policies or the performance of the previous Queensland Labor Government nor do I believe it was an endorsement of the policies that they intend to take forward.  

Mandates are funny things, politicians claim them all the time, but a majority of two seats to my mind is not a mandate - it is a working majority.  There is a difference and the things Queensland Labor wish to achieve this term should be tested thoroughly on the net benefit they provide to the Queensland community.

Finally the paradox that I note from the election result is the consensus opinion that people are over the negativity of politics yet a 'fear' campaign from Queensland Labor was very effective and delivered a win.    In my view this has delivered a short term election win but in the longer term will further cement the poor view of politics at present that is damaging both major political parties and their brand.

The New State Cabinet

Annastacia Palaszczuk - Premier and Minister for Trade

Jackie Trad - Deputy Premier, Treasurer and Minister for Aboriginal and Torres Strait Islander Partnerships

Cameron Dick - Minister for State Development, Infrastructure and Planning and Minister for Manufacturing

Kate Jones - Minister for Innovation, Minister for Tourism Industry Development, and Minister for the Commonwealth Games

Yvette D’Ath - Attorney-General, Minister for Justice and Leader of the House

Dr Steven Miles - Minister for Health and Minister for Ambulance Services

Grace Grace - Minister for Education and Minister for Industrial relations

Mark Bailey - Minister for Transport and Main Roads

Dr Anthony Lynham - Minister for Natural Resources, Mines and Energy

Mick de Brenni - Minister for Housing & Public Works, Minister for Digital Technology & Minister for Sport

Shannon Fentiman - Minister for Employment & Small Business and Minister for Training & Skills Development

Leeanne Enoch - Minister for Environment & the Great Barrier Reef, Minister for Science & Minister for the Arts

Mark Ryan - Minister for Police and Minister Corrective Services

Coralee O’Rourke - Minister for Communities and Minister for Disability Services and Seniors

Mark Furner - Minister for Agricultural Industry Development and Fisheries

Stirling Hinchliffe - Minister for Local Government, Minister for Racing and Minister for Multicultural Affairs

Di Farmer - Minister for Child Safety, Youth and Women and Minister for the Prevention of Domestic and Family Violence

Craig Crawford - Minister for Fire and Emergency Services

Assistant Ministers

Jennifer Howard - Assistant Minister for Veterans Affairs and Assistant Minister of State

Glenn Butcher - Assistant Minister for Treasury

Julieanne Gilbert - Assistant Minister for State Development

Brittany Lauga - Assistant Minister for Education

Meaghan Scanlon - Assistant Minister for Tourism Industry Development  

 

Election Policies

Tax

  • Employers who hire apprentices and trainees will receive a payroll tax rebate of 50 per cent on their wages in addition to their wages being exempt from payroll tax until 30 June 2018.
  • Four new taxes including increasing the 3% transfer duty surcharge applied to foreign buyers of Queensland property to 7% (raising $99m over 3 years); a new land tax category for 850 large property holdings greater than $10m (raising $227m over 3 years); additional 2% duty on luxury motor vehicles (raising $75m over 3 years); and a point of consumption wagering tax (raising $90m over 3 years).

Employment

  • An additional $155 million to extend the Back to Work program to July 2021 to help up to an additional 10,500 regional Queenslanders get a job.  Employers are eligible for up to $10,000 for hiring an unemployed worker; $15,000 for hiring a long-term unemployed worker (a person unemployed for 52 weeks or more); and $20,000 Youth Boost for hiring a young jobseeker aged 15-24 years.
  • The Skilling Queenslanders for Work program will be provided with an extra $180 million over the next three financial years. Boosted programs include Community Work Skills; Work Skills Traineeships; Get Set for Work ; Ready for Work; and Youth Skills.

Electricity

  • Powering Queensland investing $771 million in 2016-17 to remove the cost of the Solar Bonus Scheme from electricity prices over the next three years. 
  • The Affordable Energy Plan $300 million from 1 January 2018 including: rebates of up to $300 to purchase an energy efficient fridge, washing machines or air conditioner ($20m); energy audits for large customers including manufacturers, with a 50% co-contribution to implement recommendations (up to $250,000 per customer) ($10 million); expanded Energy Savers Plus program providing a 50% co-contribution (up to $20,000) to implement audit recommendations ($10m); and annual discounts for regional Ergon customers of $75 for households & $120 for small biz on monthly billing ($15m).
  • An Asset Ownership Dividend of $50 a year for every household bill over the next two years ($200m).
  • Powering Queensland’s Future: Affordable, Stable and Balanced Plan:  State-owned electricity network and generation assets to be kept in public hands; establishing ‘CleanCo’ – re-structuring our two publicly-owned electricity generation companies into three with a strategic portfolio of low and no emission power generation assets; target of at least 50 per cent renewable energy generation in Queensland by 2030.

Buy Local

  • Queensland Procurement Strategy and Policy (QPP): providing a weighting of up to 30 per cent to local suppliers within 125 km; inviting one regional and one Queensland supplier to quote or tender for every opportunity, where possible; delivering a more visible pipeline of opportunities for small and regional business and social enterprises; and using local contractors and manufacturers, where possible, in significant projects valued at $100 million and above.

Infrastructure

  • Bruce Highway Upgrade Trust to be established with a $200 million State contribution annually and an initial $175 million injection for targeted safety and flood resilience projects including bringing forward the upgrade of the Townsville Ring Road.
  • An additional $200 million to Works for Queensland program supporting critical community infrastructure projects and disaster resilience through Councils.
  • Provide $206 million for the six-laning of the Pacific Motorway between Varsity Lakes and Tugun.
  • Invest $679 million under the south east Queensland Planning for Growth program for the major refurbishment of the: Logan hospital (including $12.6 million over the next three years for the Logan maternity ward); Caboolture hospital; Ipswich hospital improvement stage one.
  • $120 million investment beginning 2021 to build three additional train stations along the Gold Coast Line at Pimpama, Helensvale North and Worongary/Merimac.
  • Building our Regions Round 4 to deliver critical infrastructure for the regions ($70 million).

Vocational Education & Training

  • Invest up to $85 million over three years in the redevelopment, refurbishment and expansion of six TAFE facilities – Pimlico (Townsville), Cairns, Mount Gravatt, Toowoomba, Redlands and the Gold Coast.
  • Ensure at least 15 per cent of labour hours on government projects are performed by apprentices and trainees.

Science & Technology

  • Investing a further $93 million in the Advance Queensland Plan including: Ignite Ideas program to help Queensland entrepreneurs take their great ideas to the global market; Industry Research Fellowships solving some State and Global challenges; An extra $20 million into the Advance Queensland Industry Attraction Fund, with a particular focus on reshoring and advanced manufacturing; and Funding the Office of the Chief Entrepreneur.

For further information please click here.

 

Costs and Impact on State Budget

Queensland Labor commitments total $2.8 billion and include $1.4 billion worth of new programs or reinvestment in programs and $1.4 billion worth of infrastructure announcements.  

Total repair measures total $3.0 billion and include $1.5 worth of recurrent expenditure savings or tax increases and $1.5 billion worth of capital reprioritisation measures.

A total net budget repair of $261 million over the forward estimates.

Total debt in 2020-21 is $80,872 million (compared to the State Budget base point in June 2017 of $71,989 million). 

 For further information please click here.

 

The Opposition

Deb Frecklington was elected as Opposition Leader of the LNP, with Tim Mander as the Deputy Leader. 

Closing

The new State Government will need to hit the ground running particularly the Treasurer - Jackie Trad.  Immediately to be actioned will be the delivery of the Mid Year Fiscal and Economic Review, representing Queensland at the national table reviewing the carve of GST and implementing the four new taxes (two of which particularly impact on Queensland’s property sector). In the medium term the Treasurer will have her hands full in tackling the key issues of unsustainable recurrent spend, high debt and delivering Queensland's future infrastructure.  In summary there is more talent available and more experience to this State Government. It will be fascinating to observe whether these attributes translate into a Government that starts to lift the level of political discourse in Queensland.   

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