The Queensland Crisafulli LNP Government has handed down its second budget this afternoon, taking a no-frills approach to the state’s spending. Treasurer David Janetzki delivered a fiery budget speech as he laid out his plan to juggle a difficult fiscal outlook, ongoing infrastructure spending commitments and his government’s ‘no new or increased tax’ pledge. 

Painting his budget as an effort to “strengthen the foundations” laid last year, the Treasurer cast it as a stable fiscal anchor for the state during “challenging times, at home and abroad”. He was quick to assign blame for those challenges, criticising both the former Labor Government and the federal government for making only ‘easy’ budgetary decisions, while also pointing to the ongoing pressures from the war in Iran in a heavily diesel dependent economy. 

The centrepiece, however, was the cost-of-living support package, which included an increase in the Electricity Rebate for vulnerable households to an indexed $399 per household, a two-year freeze to bulk water prices in South East Queensland, expansion of the Back to School Boost (a $100 credit for each primary school student), as well as introducing legislation for the state’s popular 50 Cent Fares. 

New spending was announced for highways, regional roads and rail, alongside upgrades designed to support population growth and improve connectivity across the state. Significant funding is being directed toward priority corridors such as the Bruce Highway and congestion reduction projects in fast growing regions, as well as investments aimed at improving freight efficiency and regional access. 

The Government’s Boost to Buy home ownership scheme received a top up, with additional funding of $163 million in 2026-27. This provides those eligible with a government equity contribution of up to 30 per cent for new homes and 25 per cent for existing homes. Additionally, for first homebuyers, the LNP expanded the First Home Owner Grant to $30,000 for the next four years. The Government has also brought forward funding for the Residential Activation Fund, doubling Round Two funding to $1 billion. 

To promote water security for households and agriculture, the Government committed to restoring the North Pine and Lake Macdonald Dams to full storage capacity, through a $545 million investment. The Government also confirmed that it won’t alter the state’s coal royalties regime but has invested $100 million into a Critical Mineral Fund to unlock priority projects, attract private investment in an attempt to strengthen Queensland’s role in the supply chains globally. 

In 2026–27, the Government is projected to achieve an operating deficit of $6.2 billion, with a return to surplus forecast for 2029–30. State debt is at $142.4 billion, down $5.4 billion from what was previously forecast for 2025–26. Total state debt is now forecast to reach $216.5 billion at the end of the forward estimates in 2029-30. Additionally, Gross State Product is projected to grow 2.5 per cent in 2025–26 with increases above 2 per cent to 2030 outside of the current year. To achieve some of the savings outlined in the budget, the Government has committed to reducing the number of non-frontline senior executives employed under the Public Sector Act from 842 to 793, saving approximately $54.2 million over the forward estimates.