Australia States Announce Budget Measures: NSW Lowers Toll Cap, Queensland Faces Fiscal Caution

Queensland's Treasurer David Janetzki is set to deliver the state's second budget today, with expectations leaning towards a cautious fiscal plan rather than one focused on major reforms. While few significant announcements have preceded the budget, Premier David Crisafulli and Janetzki have pledged to introduce no new or increased taxes. They also plan to continue funding the state's 50-cent public transport fare scheme, a policy initiated under the previous Labor administration.

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Our first budget laid the foundation for a fresh start, and tomorrow’s budget will strengthen them because we need to build Queensland’s future.

The budget comes at a time when the Queensland government's finances are reportedly on the brink of a credit rating downgrade. S&P Global Ratings projected last October that the state's debt could reach 150% of its revenue by 2028, a substantial increase from 100% in 2023. This projection is attributed to historically large infrastructure investments, partly driven by preparations for the 2032 Olympic Games. Treasurer Janetzki has previously acknowledged that a downgrade might be "inevitable."

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inevitable

Meanwhile, the New South Wales government is set to announce measures to alleviate cost-of-living pressures. As part of its 2026-27 state budget, the government will reduce the weekly road toll cap from $60 to $50 for a period of 12 months, effective July 6. This change will offer a saving of $10 per week for motorists who already benefit from toll relief, impacting tolls on roads managed by private operator Transurban.

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no new or increased taxes

Opposition parties in Queensland have voiced concerns, predicting potential cuts to public services and the deferral or downgrading of infrastructure projects. Labor leader Steven Miles specifically cited projects like the Coomera Connector highway, a new road tunnel in Brisbane, and rail initiatives on the Gold and Sunshine Coasts as potentially affected, accusing the government of breaking promises made for the 2032 Olympics.

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These are all projects that he promised would be funded and delivered in time for the 2032 Brisbane Olympic and Paralympic Games, and he has broken that promise.