Queensland state debt collectors given order to rake in $612m

State debt collectors in Queensland will be out in force in a crackdown expected to recoup $612m in unpaid fines and taxes over the next four years.

Delivering its state budget on Tuesday, the government has directed the Queensland Revenue Office to “ensure every avenue is pursued” in collecting unpaid fines and taxes.

The crackdown is projected to boost state coffers by $612m over four years.

The move comes as the state’s deficit climbs to $8.84bn this financial year, up from the forecast $8.58bn.

The major cost of living offer in the budget is a $50 increase to the Back to School Boost, lifting the credit to $150 for each school-aged child – the credit can go towards expenses like uniforms and excursions.

The government has also promised to make permanent and legislate the 50c public transport fares.

Power bill rebates for 700,000 low-income households have also been increased by 3.4 per cent, taking the subsidy to $399, but vehicle registration discounts are ending.

Patients travelling from regional areas for medical appointments can also now claim an increased $0.45-per-kilometre subsidy.

Announced over the weekend, the government has also frozen bulk water prices in the southeast, which it says will save households $130 over the coming two years.

Premier David Crisafulli said the budget solidified cost-of-living measures.

“It’s not sugar hits. It’s locked in for the long term and it’s our way of playing a small part in easing pressure in what are national cost of living pressures that people are feeling,” he said.

The budget made “repairs that haven’t been done for so long”, Mr Crisafulli said.

The Liberal National Party government is also further lowering the cap on senior public service executives that Treasurer David Janetzki says will save $54m.

Soaring house prices, a sweeter GST deal and elevated coal prices have given the government some wiggle room, but Mr Janetzki blames the previous government for an “inevitable” ratings downgrade which will make borrowing more expensive.

“Labor’s legacy left us highly likely, or even an air of inevitability to getting a rating downgrade, but I’m not giving up,” Mr Janetzki said.

“We’re making the budget improvements while delivering what we promised.”

The budget papers show surging house prices have fattened the stamp duty take.

The government expects to collect an additional $1bn of tax revenue this year, buoyed by stamp duty takings and higher than expected payroll taxes.

Taxes, royalties and GST revenue collectively are forecast to increase by $6.73bn this financial year, to $58.73bn. Broken down, coal royalties are anticipated to deliver an extra $1.53bn over four years, and petroleum royalties will garner an extra 66 per cent ($1.86bn) this year. Queensland’s GST share will grow 15.6 per cent.

Metropolitan councils will also be hit with a $10 increase per tonne on the waste levy from mid-2028 that councils will have the ability to pass on to ratepayers.

In parliament, Mr Janetzki said there were no new or increased taxes in the budget, and “lower debt” had opened a pathway to surplus.

“I can advise the House that total state debt will be lower each year across the forward estimates than previously forecast,” he said.

The total debt forecast for this year has ticked down $4bn since January, and the total debt for next financial year has also come in $7.9bn under previous forecasts.

But the state will be on the hook for $6.83bn in interest charges alone next financial year that is expected to rise to $10.9bn over the coming three years.

This rising interest bill eclipses the entire $7.1bn the government has allocated for 2032 Olympics infrastructure.

“This budget strengthens the foundations we have laid for a fresh start … It provides real cost-of-living relief,” Mr Crisafulli told parliament.

“Importantly, for the second year in a row, our budget will contain no new taxes and no increased taxes.”