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Treasurer and Minister for Trade, Tim Nicholls handed down the final Budget of the Newman Government's first Term on Tuesday 3rd June. There were no real sweeteners in here for business or individuals so it is not a normal 'election budget'. Here is a brief summary of the high level numbers.

Treasurer and Minister for Trade, Tim Nicholls handed down the final Budget of the Newman Government's first Term on Tuesday 3rd June.  There were no real sweeteners in here for business or individuals so it is not a normal 'election budget'.  Here is a brief summary of the high level numbers:

  • Deficit forecast of $2.2billion in 2014-15 down from a $6.1billion deficit in 2013-14 which was a significant improvement on the $7.6billion deficit previously forecast for 2013-14;
  • Expect to balance the books by 2015-16;
  • Government plans to lease or sell assets to reduce debt from $80billion to $55billion, and
  • Achieve a reduction in interest payments from $4billion to $2.7billion as a result.

The Budget has achieved both a focus on future economic growth as well as clear plan to restore the financial footing of the State.  There were no new taxes for business and a number of industries received initiatives of support, including:

  • Drought Assistance Package of $62million over two years to support drought affected communities.
  • $11.6million in 2014-15 to support Queensland Tourism, additional $3million to promote Queensland as the best place to invest, employ, and grow.
  • $13million over three years to support the commitment to create 10,000 additional apprentices over six years.

The proceeds of the asset sales and long-term leases, ~$33.6billion, is proposed to be applied 75% to debt reduction with the remaining proceeds, ~$8.6billion, used to fund new infrastructure and investment.

For a full breakdown of the State Budget 2014-15 please refer the following resources:

http://www.budget.qld.gov.au/

Should you have any queries about how the State Budget will impact your business, please contact your usual Hanrick Curran Adviser on 07 3218 3900.