Running over and over: Coal, payroll tax deliver huge surplus for Queensland
Record coal prices and hefty collection of payroll tax has meant the State Government is awash with cash and has delivered a record surplus of almost $14 billion for the last financial year.
The mining sector helped deliver a massive surplus (file photo)
The result is $1.6 billion more than anticipated due to the Federal Government making advanced payments for disaster relief and social housing. It also meant the Government could reduce the amount it needed to borrow.
The surplus eclipsed the previous best ever result only the year before of $4.284 billion.
General Government sector borrowings at the end of 2022-23 were nearly $1 billion lower than the estimate in the 2023-24 Budget release in June this year, representing a reduction in borrowings of more than $12.7 billion compared to the 2022-23 Budget.
The Report on State Finances showed net debt at the end of the financial year was $2.6 billion, which is less than one quarter of Queensland’s net debt the previous year.
However, non-financial public sector borrowing as at June 30 was $102.821 billion, marginally higher than estimated actual in the 2023-24 Budget. This was because of a market value adjustment to derivatives held by energy Government-owned corporations to hedge movements in electricity prices, offset in part by lower GGS borrowing.
Treasurer Cameron Dick said it was an “incredible result” and was because of the hard work of Queenslanders.
“We are putting this surplus to work by delivering nation-leading cost-of-living support to Queensland families and businesses, and through our record $89 billion Big Build capital program over the next four years,” he said.
“Our strong fiscal position also means General Government sector borrowings at the end of 2022-23 were nearly $1 billion lower than the estimate in the 2023-24 Budget release in June this year.
“Compared to the 2022-23 Budget, this means a full reduction in borrowings of more than $12.7 billion.
“The reduction in net debt is the sharpest net debt decline year-on-year since accrual accounting began in the late 1990s and the third consecutive net debt decline year-on-year.
“Our progressive coal royalty tiers are delivering for Queenslanders right across the state, as they rightfully should, at a time that coal producers are benefiting from extraordinary prices.”
