Today, the UDIA (Qld) was invited to represent our members in the Queensland State Budget ‘lock-up’ and be briefed by the Government on the contents of the 2015-16 State Budget.
Key points of note for the property development industry include:
No new taxes, fees and charges. No increases to property tax rates, fees or charges.
Funding was allocated to the Department of Local Government, Infrastructure and Planning to assist in the implementation and transition to new planning legislation ($29m in 2015-16, with funding across the forward estimates totalling $57m).
Continuation of the $15,000 Great Start Grant.
A capital works budget of $10.1bn in 2015-16 – a slight increase on the $9.8bn in capital works spending budgeted by the previous Government for 2015-16.
An allocation of $100m towards the development of a new Townsville Stadium.
Funding of $200m over two years ($100m in 2015-16 and $100m in 2016-17) for the Building our Regions Program. This program was an election commitment and funding will begin flowing in 2015-16 – one year earlier than previously promised.
The Royalties for the Regions program will be phased out, with $24m in funding previously budgeted for 2015-16 no longer allocated.
Reduced funding for the Priority Development Infrastructure (PDI) Co-Investment program. Only $40m of the $100m budget for PDI program was spent in 2014-15, with the unspent $60m reallocated to other budget measures. In 2015-16 and 2016-17, $20m per annum has been allocated to a Catalyst Infrastructure program for investment in catalyst urban infrastructure.
In addition, the Treasurer has announced a new ‘Market-Led Proposals’ framework to enable the private sector to submit infrastructure projects for potential partnerships with the State. The private sector will now be able to propose solutions to major infrastructure challenges, and submit these for co-ordinated assessment via a Market-Led Proposals portal. The Institute welcomes this new initiative to assist in identifying innovative approaches to delivering the infrastructure that growing communities need. A Government media release outlining this initiative can be found here.
No new funding for big ticket transport infrastructure projects (e.g. Gold Coast Light Rail Stage 2 and Cross-River Rail) has been allocated in the Budget. The State Government is continuing to lobby the Commonwealth for funding assistance as well as seeking to identify innovative funding solutions before making firm budgetary commitments to expensive new infrastructure. Further details on the State Government infrastructure priorities will be forthcoming in February 2016 when a new State Infrastructure Plan is delivered.
The Institute congratulates the Government and welcomes the following decisions that align with recommendations that the UDIA (Qld) made in our pre-budget submission and Advocacy Agenda launched prior to the January 2015 election:
· Refraining from introducing new taxes, fees and charges or raising property tax rates.
· Retention of the Great Start Grant that has been particularly important for stimulating new housing supply and making new housing a more affordable choice for young Queenslanders.
· Allocating generous funding to the Department of Local Government Infrastructure and Planning to assist in the implementation and transition to new planning legislation.
Another key recommendation in our pre-budget submission was for increased State Government funding for urban infrastructure. Disappointingly, the 2015-16 Budget does not deliver increased investment in this areas, however the Institute welcomes the State’s efforts in seeking to deliver and fund new infrastructure through mechanisms other than debt funding.
To assist our members, the Institute has prepared a brief summary of the 2015-16 Queensland State Budget to give a snapshot of the economic and revenue outlook and what it means for the Queensland property development industry.
1. Economic Overview and Outlook
2. Revenue Performance and Outlook
Click here to download the summary or for more information, please contact Duncan Maclaine on email@example.com or (07) 3233 2727.