Our financial performance

The government established the Queensland Future Fund (QFF) to support Queensland’s future economic success. The Debt Retirement Fund (DRF) is the first fund established under the Queensland Future Fund Act 2020 (QFF Act 2020) with the purpose of debt reduction. The QFF DRF holds state investments for future growth to be used to offset state debt when assessing Queensland’s credit rating. 

The QFF DRF investment on Queensland Treasury’s balance sheet takes the form of a Fixed Rate Note (FRN) with Queensland Treasury Corporation (QTC). The QFF DRF is backed by investments in Queensland Investment Corporation (QIC) trusts held on QTC’s balance sheet. The investment objectives, strategies and policies of these QIC trusts are advised by the State Investment Advisory Board (SIAB). 

QIC has been appointed as investment manager to implement the investment objectives set by SIAB for the DRF portfolio. 

Under the DRF FRN arrangement, the QFF DRF transfers any received contributed assets to QTC. On receipt, QTC will transfer the contributed assets to QIC managed trusts. In consideration of the back to back transfers, QTC will increase the value of the QFF DRF fixed rate note to Queensland Treasury, and QIC issue units in the QIC trusts (referred to as the DRF asset portfolio) to QTC. No contributions were made to the DRF in the 2022–23 financial year.

The value of the DRF asset portfolio as at 30 June 2023 is $8.336 billion compared to $7.718 billion at 30 June 2022.

Interest from the DRF is quarantined and reinvested in the DRF asset portfolio. 

The actual asset allocations of the QIC trust investments for the DRF portfolio as at the reporting date are:

Only the Treasurer has the power to authorise or make payments from QFF DRF under section 10 of the QFF Act 2020. Payments from the DRF may be made only for repayment of the state’s debt and paying fees or expenses relating to the administration of the fund. No withdrawals were made from the DRF for debt repayment in 2022–23.

The Queensland Government Insurance Fund (QGIF), administered by Treasury, is a self-insurance arrangement which commenced on 1 July 2001. Government agencies pay premiums intended to meet the cost of claims arising from incidents occurring in the premium year, with the claims to premium ratio at 97 per cent since commencement. QGIF also meets the cost of claims arising from incidents occurring prior to 1 July 2001. 

Claims are paid out of Queensland Treasury’s Administered accounts, while the provision for outstanding claims is held at the whole-of-government level.

The estimated outstanding claims liability as at 30 June 2023 was $3,312 million, compared to $3,622 million at 30 June 2022. Key components of the movement were a reduction in the provision for abuse claims and the impact of a higher real discount rate. Investments intended to meet the government’s outstanding claims liabilities are held by Queensland Treasury Corporation within its long-term assets. The fund reinsurance program has been in place since 1 November 2011 and is subject to annual renewal.

QGIF’s outstanding claims liability and associated investments are reported in the government’s annual Report on State Finances.

State taxes, royalties and other state revenue 2022–23

• Duties $7.48B
• Payroll tax $5.71B
• Land tax $1.74B
• Gaming taxes and other taxes $1.76B
• Royalties $18.17B
• Penalty, fines & levies $0.99B
• Other state revenue $1.18B

Total administered expenses by category 2022–23

• Annual leave central scheme reimbursements $2.46B
• Superannuation benefit payments $1.99B
• Finance/borrowing costs $1.35B
• Losses on assets $0.14B
• Long service leave central scheme reimbursements $0.63B
• Grants and subsidies $0.36B
• Supplies and services $0.17B
• Other expenses $0.3B

• Employee expenses $161.14M
• Supplies and services $146.35M
• Grants and subsidies $59.97M
• Losses on assets $69.53M
• Depreciation and amortisation $25.01M
• Interest expense $0.29M
• Other expenses $4.2M