The AADA and MTAQ have reviewed the 2026-27 Queensland State Budget from the perspective of the franchised new car retail sector.
This bulletin refers to some of the key measures that may be relevant to Queensland motor vehicle dealers such as enhancements to the Queensland motor vehicle Registration and Licensing system, increased funding to supply new motor vehicles to Queensland Public Service and law enforcement agencies, an increase in resources to ease the burden in civil court matters, law and order investment as well as broader economic and fiscal trends that may influence consumer confidence and vehicle demand across the state.
What the Queensland Treasurer Said
The Queensland Treasurer, David Janetzki MP has advised that his 2026-27 “strengthens” on the foundations the government laid last year and this Budget has delivered the “largest ongoing cost-of-living relief package” in the state’s history. Further the Treasurer claimed that the government was delivering lower debt with a pathway to surplus. Pleasingly for Queensland dealers and consumers there are no new, or increased, taxes or duties.
The Treasurer also advised that a credit downgrade was inevitable.
The Budget announces a $6.2 billion operating deficit in 2026-27, whilst projecting another deficit of $6.18 billion in 2027-28. The states total debt is expected to climb to $216.47 billion by the end of forward estimates in 2029-30.
Debt this year will be $142.4 billion, a $5.4 billion reduction on last year’s budget.
Key Outcomes from the Queensland Budget
- An expected income stream of $6.9 billion from coal royalties in 2026-27.
- A projected $8.35 billion in transfer duty revenue is expected to be raised in 2026-27. This is down from $325 million from the year before, with the Treasurer attributing the drop in revenue to ‘Canberra uncertainty’, citing fallout of the proposed changes to negative gearing the CGT Discount as announced in the May 2026 Federal Budget.
- The Queensland Government will spend $4 billion on its Hospital Rescue Plan. The plan is forecast to cost the state $18.5 billion over 5 years.
- Investment in infrastructure will see a capital program deliver $119.2 billion in a four-year period up to 2029-30 that will support investment in critical infrastructure.
- A further $417 million has been earmarked for 2032 Olympic Games Venue development of which the Federal Government will contribute $59.3 million.
- A total of $23 million in 2026-27 on the recruitment of police officers to boost frontline presence.
Motor Vehicle Related Information
1. In the QLD Budget Paper No.2 Budget Strategy and Outlook the following has been announced:
- Motor vehicle registrations are forecast to be responsible for 9.2 percent of tax revenue for 2026-27 whilst ‘other duties’, such as vehicle registration duty and insurance duty, are forecast to account for 9.5 percent of the state’s taxation revenue.
- Motor vehicle registration fees have returned to expected levels after a one-off reduction which was temporarily funded in the 2024-25 Budget and ceased as scheduled from mid-September 2025.
2. In the QLD Budget Paper No.3 Budget Capital Statement it is announced that:
- The Queensland Ambulance Service have been allocated $52 million to commission 200 new and replacement ambulances.
- The Queensland Police Service have been allocated $57.4 million for new and replacement vehicles.
3. In the QLD Budget Paper No.4 Budget Measures it is announced that:
- The Government have committed to the provision of additional funding toward modernising the Transport Registration and Integrated Licensing System. It is advised that partial funding has been allocated from the Queensland Government Digital Fund. The budgeted amount is not displayed as contracts have not been awarded.
- The Government is also dedicating additional funding for additional judicial resources to the tune of $11.0 million over five years, and $2.4 million per annum ongoing to appoint additional Supreme and District Court Judges. This allocation addresses an increasing demand to deliver faster access to justice for victims and to facilitate the expeditious finalisation of civil matters.
Other
Queensland members are encouraged to provide their feedback to Michael McKenna with concerns and policy reform measures about the Budget and to provide feedback for areas of concern to be included in the AADA 2027-28 Queensland Budget Manifesto. The AADA will continue to collaborate with the Motor Trades Association of Queensland (MTAQ) on dealers issues of national significance.