Queensland State Budget 2026-27 | A steady state approach reflects stability, with no major tax reform
Queensland Treasurer, David Janetzki, has handed down the 2026–27 Queensland State Budget, with tax measures reflecting a continued focus on stability and consistency in existing policy settings. Against a backdrop of ongoing fiscal pressures, including reduced GST revenue and reliance on property and payroll-based taxes, the Budget focuses on maintaining stability in the State’s tax framework.
For businesses and investors, the key takeaway is that the current tax settings remain largely unchanged. The Budget does not introduce any new taxes or increased taxes, reflecting the Queensland Government’s stated focus on maintaining a stable and predictable tax environment.
Payroll tax: No major changes, extension of apprentice and trainee rebate
In line with expectations, the 2026–27 Budget includes no changes to payroll tax rates or thresholds. The Government will instead maintain its existing framework, with a continued focus on targeted relief measures.
The 50 per cent payroll tax rebate on apprentice and trainee wages (which are currently exempt from payroll tax) will be extended to 30 June 2027. This measure is estimated to have a cost of $64 million in 2026 to 2027 and continues to support businesses that invest in training Queensland’s future workforce.
The absence of broader payroll tax increases or cuts suggests the Government is balancing targeted support for employers with the need to preserve payroll tax as a stable revenue base.
Transfer duty: Housing support maintained with targeted changes
Transfer duty continues to play a central role in Queensland’s housing affordability. In the 2026-27 Budget, the Government has retained the existing range of concessions, aligning with earlier reforms. These include measures such as transfer duty exemptions for first-home buyers purchasing new homes.
In tightening existing concessions, from 1 August 2026, temporary residents (holders of temporary visas) will no longer be eligible for home concessions for transfer duty. This means non-permanent resident homebuyers will pay duty at standard (investor) rates. The Revenue (Cost of Living Relief Locked-in Law) and Other Legislation Amendment Bill 2026 containing this change was introduced in the Queensland Parliament. Overall, the Budget signals a period of policy certainty with no new broad duty changes.
Foreign surcharge land tax and additional foreign acquirer duty
The Budget delivered no substantive changes to land tax or the additional foreign surcharges on property. In 2026, the Government implemented a more streamlined process for eligible property developers to obtain relief from additional foreign acquirer duty and absentee land tax surcharge. Taxpayers are now operating within the new processes to assess whether they improve efficiency and result in a more streamlined approach. The Government expects that the estimated revenue foregone from these changes will be approximately $66.2 million over five years.
No adjustments were made to the general land tax regime or surcharge rates. This means land tax obligations and foreign surcharge settings remain consistent, offering short-term stability in property holding costs.
Increased funding for tax compliance and debt recovery
The Budget includes a significant investment in the Queensland Revenue Office’s compliance and debt recovery activity, with $60 million of additional funding over four years and an ongoing $15.6 million per year.
This is expected to be accompanied by an uplift in revenue collections, with the measure forecast to generate an additional $220 million in revenue and a further $612 million in debt recoveries over four years.
The focus of this measure is on improving the integrity of existing tax, royalty and penalty regimes by increasing audit activity, strengthening recovery action and supporting taxpayers to meet their obligations.
For businesses, this is likely to translate into increased scrutiny across key state taxes, including payroll tax, land tax and transfer duty. In particular, taxpayers can expect a greater level of review activity and increased focus on debt collection where amounts remain outstanding.
Businesses should ensure their state tax positions are robust, well-documented and supported by appropriate governance processes. This includes proactively reviewing compliance and addressing any historical exposures before they are identified through audit activity.
A deliberate pause on tax reform
Overall, the 2026 Queensland Budget reflects a clear theme of stability and certainty with no new or increased taxes. With state revenues under pressure, including the impacts of GST redistribution and fluctuating economic conditions, the decision to not introduce new taxes or increase any existing taxes signals a cautious approach, with the apparent aim to support business confidence and household budgets during a period of economic uncertainty.
The steady approach provides predictability for taxpayers. Organisations can plan with greater confidence knowing core state tax settings remain unchanged. However, the increased focus on enforcement, highlighted by additional funding for Queensland Revenue Office compliance and debt recovery activities, is a reminder for businesses to ensure their tax compliance and documentation is up to date.
Ultimately, the Budget’s tax measures signal a stable, ‘no surprises’ strategy, balancing modest support for key sectors with a commitment to maintaining stable tax settings.
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