Southern Gold Coast Chamber of Commerce - Queensland State Budget 2025–26: Review and Response

The Southern Gold Coast Chamber of Commerce responds to the Queensland Government’s 2025–26 State Budget.

Southern Gold Coast Chamber of Commerce
Budget 2025–26: Review and Response

The 2025–26 State Budget arrives at a critical juncture for the Gold Coast. As one of Australia's fastest-growing urban regions, our city is undergoing significant transformation, driven by sustained population growth, rising investor confidence, and increasing demand for housing, services, and employment. Across the Gold Coast, and particularly here on the Southern Gold Coast, these pressures are acutely felt. With both the Gold Coast and Tweed regions experiencing rapid expansion and limited land mass between them, strategic investment in infrastructure has never been more urgent.

Engaging seriously with transport infrastructure and laying the foundations for sustainable growth is essential. Without it, our capacity to accommodate future demand across housing, education, employment, and tourism will be severely compromised. Investments in housing, transport, and innovation are not merely desirable; they are imperative to safeguard the future of our economy and the liveability of our communities.

With the Brisbane 2032 Olympic and Paralympic Games on the horizon, Queensland has a once-in-a-generation opportunity to strategically build capacity and improve connectivity across the state. The Gold Coast must be integral to this vision, with transport systems, housing pipelines, and commercial precincts equipped to support increased demand and leverage the attention the Games will bring. Now is not the time for a conservative approach; it is the moment to intensify forward-looking, regionally balanced infrastructure investment. Historically, governments have often turned to infrastructure investment during challenging or uncertain economic periods as a means of establishing the groundwork for recovery.

I echo the concerns voiced by some of our members, particularly within the hospitality and retail sectors, regarding this budget’s notable absence of direct measures to stimulate disposable income and discretionary spending. This remains a challenging and uncertain period for standalone retailers and small operators reliant on brick-and-mortar traffic, and this budget offers little immediate relief. In many respects, the traditional small business model appears to have been overlooked. While major projects are crucial for long-term economic confidence and job creation, infrastructure investment should ideally be complemented by efforts to bolster consumer confidence and boost local spending. This would enable businesses most affected by construction to not only navigate disruptions but also benefit from increased footfall and renewed market vibrancy. This imbalance represents a significant oversight and a missed opportunity.

I understand the sentiment many business owners share when confronted with headlines of record infrastructure spending: "How does a multi-billion dollar increase in capital works help me make payroll next week?" While major projects may not feel immediately relevant, they undeniably lay the groundwork for long-term economic confidence, job creation, and future market growth. Equally vital are smaller, practical investments, such as financial literacy programs and sustainability grants, that directly support everyday business operations. Ultimately, this infrastructure investment is about shaping our city’s future, boosting confidence, and attracting people to the Gold Coast.

This review has been prepared to provide our members with a clear summary of the budget's implications for the Southern Gold Coast, assess where this year’s funding has shifted, and outline the key areas where our region must advocate for continued or expanded investment.

1. Infrastructure and Economic Priorities

The Queensland Government’s 2025–26 State Budget outlines a range of economic and infrastructure priorities, balancing long-term investment with fiscal restraint. With a total capital program of $29.3 billion in 2025-26 and a substantial $116.8 billion infrastructure pipeline projected over the next four years, the budget continues a trend of large-scale public infrastructure investment aimed at stimulating economic activity and addressing regional growth demands.

This budget also seeks to stabilize the state’s financial position through reduced projected debt and measures to improve operational efficiencies. For the Southern Gold Coast business community, it is crucial to understand both the opportunities this budget presents and how it compares to previous years.

2. Key Developments Affecting the Southern Gold Coast

Transport and Connectivity

The 2025–26 Budget does not include any specific funding allocation for the business case of Gold Coast Light Rail Stage 4. This omission is particularly concerning given the community’s need for a fully informed discussion around critical transport infrastructure. This vital step towards detailed planning for a future light rail extension to the Southern Gold Coast appears to be absent from the current budget papers. While investments in Logan and Gold Coast Faster Rail ($5.75 billion total commitment jointly funded with the Australian Government) and the Coomera Connector Stage 1 ($3.5 billion total estimated cost jointly funded with the Australian Government) are welcomed, the lack of commitment to the Light Rail Stage 4 business case impedes transparent community discussion on essential transport planning for our rapidly growing southern region.

Local Business Support and Safety

A new $40 million Secure Communities Partnerships Program has been announced over three years, designed to enhance safety infrastructure in local business precincts. This program holds potential for practical benefits for commercial centres on the Southern Gold Coast if allocated effectively.

Sustainability and Operational Cost Reduction

The budget includes targeted initiatives such as the Supercharged Solar for Renters Program, funded with $26.3 million over three years, providing rebates of up to $3,500 to eligible landlords for installing solar panels on rental properties, aiming to reduce energy bills for renters. Additionally, the Queensland Community Housing Energy Upgrades program, with $21.8 million over two years (including $18 million from the Australian Government), aims to install energy-efficient equipment in eligible properties. These measures offer specific avenues for energy cost reduction, though a general grant program for all small businesses across sectors is not apparent.

3. Comparative Insights: 2025–26 vs. Prior Years

Increased Investment

The total capital program for 2025-26 is budgeted at $29.3 billion. Health investment sees a substantial record capital investment in Queensland Health infrastructure of $18.526 billion across five years (including 2024-25) for the Hospital Rescue Plan, aiming to deliver over 2,600 new beds. Housing investment includes $1.967 billion over four years (including $1.892 billion in capital funding) and $500 million per annum ongoing to support Queensland's Housing Investment Pipeline, aiming for 53,500 social and community homes by 2044.

Continued Commitments

Education remains a strong focus, with $1.076 billion allocated for capital infrastructure in 2025-26, alongside an additional $814.8 million held centrally over the next four years for new school infrastructure planning and construction in growth areas, including Holmview and Logan Reserve. Infrastructure linked to the Brisbane 2032 Olympic and Paralympic Games continues to be funded, with provisions made within broader capital programs, including $7.1 billion over seven years to 2031-32 for venues infrastructure.

The 2025-26 budget does include provisions for post-disaster recovery for small businesses. The $2.5 billion estimated to be spent on community recovery in 2025-26 explicitly mentions "loans and grants for primary producers, small businesses and not-for-profit organisations." Financial literacy and Indigenous business mentoring programs are not explicitly continued as standalone measures. Details on "Free TAFE Nursing" and related vocational education initiatives are integrated into broader skills agreements and are not itemized separately.

4. Fiscal Strategy and Economic Outlook

The 2025–26 budget projects a net operating deficit of $8.581 billion. However, Non-financial Public Sector (NFPS) borrowings are revised downward to $205.7 billion by 2028–29, an improvement from a previously forecast $217.8 billion for 2027-28. Measures driving this reduction include the use of $3 billion from the defined benefit superannuation scheme to repay debt and $6.8 billion in projected savings from reduced external consultancy spend. These adjustments are part of a broader strategy to temper debt growth and refocus expenditure on frontline services and capital works.

5. Tax Implications and Revenue Considerations

The 2025–26 budget does not introduce any new taxes. While it does not offer widespread, general tax cuts for all Queensland businesses, it provides targeted tax relief. For instance, the payroll tax exemption for payments to general practitioners (GPs) (estimated cost of $538 million over five years) aims to support bulk billing rates. Additionally, the 50% payroll tax rebate for apprentice and trainee wages is extended until June 2026. The budget also maintains existing tax structures, with the payroll tax rate at 4.75% for businesses with payrolls between $1.3 million and $6.5 million, and 4.95% for those above $6.5 million. Land tax and transfer duties remain unchanged in rates. However, businesses and property owners should note that land tax assessments may rise due to increasing property values, impacting annual obligations despite static rates.

Overall, while the tax structure remains largely consistent, the absence of new broad-based concessions means the tax burden for many businesses will hold steady, or potentially grow incrementally due to economic factors like wage growth, inflation, and valuation increases. Businesses are advised to assess their liability and consult with financial advisors to prepare for these adjustments.

6. Final Reflections

The 2025–26 State Budget outlines a bold infrastructure agenda and affirms Queensland’s long-term commitment to health, housing, and transport investment. For the Gold Coast, this presents both opportunities and significant challenges. While the capital program continues to deliver critical projects across the region, including crucial investments in the Logan and Gold Coast Faster Rail and the Coomera Connector, the glaring omission of funding for the Gold Coast Light Rail Stage 4 business case is a serious concern. This absence of investment in detailed planning for a vital future transport link hinders the community's ability to engage in a truly informed discussion about our critical transport infrastructure needs. Small business owners, particularly those in hospitality and retail, remain concerned about the lack of direct stimulus to address today’s immediate economic pressures. Though I must conceed that there is indirect measures captured under this budget to build on disposable income and discretionary spending.

Infrastructure spending lays the foundations for future prosperity, but we must ensure that today’s businesses can survive long enough to benefit from tomorrow’s projects. This necessitates pairing long-term strategy with near-term support for consumer confidence, business resilience, and workforce capability.

The Chamber will continue to engage directly with members, stakeholders, and government to ensure the Southern Gold Coast’s voice is heard and our unique needs are addressed. As always, our role is to translate policy into opportunity and to advocate fiercely for the success of our business community.

We encourage members to join the Chamber on 24 July for our post-budget briefing with Mayor Tom Tate to explore these investments further and understand the opportunities and risks for our business community.

 

Zac Revere

President  
Southern Gold Coast Chamber of Commerce
president@sgc.org.au | W www.sgc.org.au

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