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Riding the boom: QLD budget 2016-17

According to the Treasurer, Queensland is expected to record the strongest economic growth of all states over the forecast period. This is on the back of surging exports of liquefied natural gas (LNG), which follows a period in which the sector encountered significant difficulties.

The State's gross state product (GSP) is estimated to increase by 3.5% in 2015-16, and 4% in 2016-17.

It is a relatively conservative budget, delivering forcast net operating surpluses over the next four years totalling almost $3.5 billion ($845 million in 2016-17).

However, there are some notable spending committments targeting innovation, including an additional $225 million for the Advance Queensland innovation scheme.

This is a significant boost of the scheme, which was set up in the previous year's budget with $180 million. With now $405 million at its disposal, the scheme supports programs including:

• the Advancing Small Business Queensland Strategy ($22 million), which includes the establishment of a Office of Small Business to deliver the strategy, and a suite of initiatives such as $6 million for Small Business Digital Grants;
• the Platform Technology Program ($10 million), which will encourage the development and deployment of platform technologies in existing and emerging industries;
• the Advance Queensland Industry Attraction Fund ($40 million);
• the Queensland Biofutures 10-year Roadmap and Action Fund ($19.7 million), setting out a plan towards a biofutures industry in Queensland that includes, for example, the production of advanced biofuels, biochemicals, bioplastics and other biomaterials from sustainable organic and/or waste resources;
• the Cairns Innovation Centre ($10 million);
• the Advance Queensland Connecting with Asia Strategy ($33.5 million); and
• the Regional Innovation Hubs scheme($6 million).

A major component of the Advance Queensland innovation scheme is also the $40 million Business Development Fund component, which contributes between $125,000 and $2.5 million in matched funding to the development of business innovations.

Key budget items also include:

• $15 million for further improvements of the mobile coverage in Queensland, building on the State's $10 million contribution to round one of the federal Mobile Black Spot Program;
• and additional $10.8 million over four years to implement recommendations from the Biosecurity Capability Review, bringing the Government's total committment to $30.2 million.

Agriculture and fisheries

Agriculture and Fisheries will be supported with a total of $454 million. It includes $77.9 million for a Rural Assistance and Drought Package, as part of which the Government will establish a Queensland Climate Risk and Drought Resilience program to improve farm business capacity, seasonal forecasting and provide decision support tools to better manage climate risk.

$16.8 million are allocated towards equipment and the upgrade of research facilities, with $4.4 million set aside for the Research Facilities Development, Scientific Equipment and Minor Works Programs, and $2.3 million for the upgrade and refurbishment of existing facilities at Toowoomba.

The government will also provide $5.2 million in new funding towards the management of Panama disease (tropical race 4), a fungal disease threatening Queensland's banana industry. The funding brings the total amount allocated to control the disease to $7.3 million.

Natural resources and mines

The 2016-17 QLD budget commits a total of $456 million to natural resources and mines. This includes the purchase of high-resolution satellite imagery coverage, providing one of the most comprehensive imagery datasets in the world, with the imagery pledged to become available for public and industry use.