In brief
The 2026-27 Queensland Budget was delivered on 23 June 2026 by Treasurer David Janetzki. The QLD Government’s commitment to no new or increased taxes was emphasised in this Budget, instead relying on other tools, including ensuring compliance with existing revenue laws, projected growth and debt to meet funding needs and combining that with management of spending to forecast an expected return to surplus from 2029-30.
In detail
Overview
General Government Sector revenue is forecast to increase by $7.652bn to $99.671bn in 2026-27 (an 8.3% increase), before growing by an average of 4.1% per annum to 2029-30. General Government Sector expenses are forecast 4.9% higher than the 2025-26 estimated actual at $105.847bn in 2026-27, with an expected average growth of 2.6% per annum to 2029-30. This is expected to be driven by royalty collections from temporarily elevated coal, oil and gas prices and higher taxation revenue underpinned by strength in Queensland’s property and labour markets.
Net debt in the General Government Sector is forecast to be $51.329bn in 2026-27, rising to $98.057bn by 2029-30. Non-financial Public Sector borrowings are forecast to be lower than projected at the 2025-26 Mid-Year Fiscal and Economic Review and the 2025-26 Budget, with the Government attributing the improvement to its fiscal discipline and commitment to budget repair.
The Budget includes a $119.2bn four-year capital program to 2029-30, with key areas of focus including the Hospital Rescue Plan, transport infrastructure, and Queensland's Housing Investment Pipeline.
Revenue measures
The Government stated that there are no new or increased taxes as part of the Budget. However, the Budget does include the revenue measures described below with the Revenue (Cost of Living Relief Locked-in Law) and Other Legislation Amendment Bill 2026 introduced to implement these measures.
Apprentice and trainee 50% payroll tax rebate extension
The 50% payroll tax rebate for wages paid to apprentices and trainees will be extended by 12 months until 30 June 2027. As apprentice and trainee wages are already generally exempt from payroll tax, payroll tax liabilities associated with wages paid to other employees can be offset with this rebate. The extension is expected to provide $64m in tax relief for all eligible businesses in 2026-27.
Transfer duty home concessions
From 1 August 2026, temporary residents will generally be ineligible for Queensland's home, first home and vacant land transfer duty concessions and will be required to pay transfer duty at standard rates, broadly consistent with investor treatment. The Budget Papers note that certain exemptions will apply, including for retirement visa holders in subclasses 405 and 410 who are exempt from additional foreign acquirer duty.
The measure is expected to reduce revenue foregone by $28.9m over four years, taking into account the Federal Government's ban on foreign purchases of established dwellings, which is in place until 2029-30.
Queensland Revenue Office compliance and debt recovery activities
The Budget provides additional funding of around $15 million per annum for the next 4 years to the Queensland Revenue Office to support compliance and debt recovery activities across Queensland's tax, royalty and penalty debt systems. The Budget Papers state that the measure is intended to support taxpayers to meet their obligations, promote compliance with existing revenue laws and pursue collection of existing tax and penalty debt.
Over four years the measure is expected to raise $220m in revenue and increase collections of existing revenue and penalty debt by $612.0m. This is a significant compliance measure for taxpayers with Queensland tax, royalty or penalty debt exposure, particularly given the Budget's stated focus on integrity of the revenue system rather than new or increased taxes.
Queensland Waste Strategy and waste disposal levy
Metropolitan levy rates will continue the $10 annual increase from 2028-29 while regional rates will continue to align with indexation following completion of a review of Queensland's waste disposal levy. The measure is expected to generate additional revenue of $569.7m over four years.
Impact of previously announced changes to duty and land tax surcharge relief
The Government has estimated that the costs associated with the recent updates to the transfer duty and land tax surcharge relief arrangements are expected to result in revenue forgone of around $66.2m over five years. This is expected to be driven by the lowering of the number of dwellings constructed required to qualify for relief from 50 to 20, a more holistic approach to the consideration of contributions from closely-related corporations and a pre-approval approach for residential developers, intended to make it easier for potential applicants to consider eligibility, and apply for and access relief.
“Locked-in” measures
In addition to the above measures and in order to address the cost-of-living, the Budget confirmed and “locked-in” certain previously introduced measures including:
- Payroll tax exemption for contracted General Practitioner’s, which the Government characterises as removing the ‘Patient’s Tax’
- Abolition of transfer duty for first home buyers of new homes and vacant land. and
- The Government’s 50 cent fare measure for public transport being made permanent.
Trends in taxation and royalty revenue
State taxation revenue is forecast to be $29.676bn in 2026-27, increased from the estimated actual of $28.474bn in 2025-26. Revenue is projected to increase further to $35.966bn by 2029-30. The Budget states that payroll taxes and transfer duty are expected to remain the largest sources of State taxation revenue in 2026-27, together representing 57.1% of total taxation revenue.
Payroll tax, including the mental health levy, is forecast at $8.593bn in 2026-27 and is projected to rise to $10.097bn by 2029-30. Transfer duty is forecast at $8.346bn in 2026-27, lower than the estimated actual of $8.671bn in 2025-26, before increasing across the forward estimates to $10.152bn in 2029-30. Land tax is forecast at $3.162bn in 2026-27, increasing to $4.826bn by 2029-30.
Royalties and land rents are forecast to be $9.692bn in 2026-27, with the Budget noting that key revenues have been revised up primarily due to higher royalties on the back of temporarily elevated coal, oil and gas prices. GST revenue is forecast at $19.577bn in 2026-27, representing 19.6% of General Government Sector revenue.
The takeaway
The Budget does not introduce new or increased State taxes, instead focusing on ensuring compliance with existing revenue laws, alongside a number of small pay-roll tax measures and tweaks to the first home buyer concessions.
The Budget's additional commitment to compliance and investigation funding suggests that taxpayers should ensure Queensland tax positions, registrations, lodgments and debt arrangements are up to date.
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