From time to time, the Queensland Treasurer must prepare and table in the Legislative Assembly a Charter of Fiscal Responsibility pursuant to the Financial Accountability Act 2009. The Charter must include details of the fiscal principles that support the Government’s fiscal objectives. The Treasurer must report regularly to the Legislative Assembly on the outcomes the Government has achieved against the objectives stated in the Charter.
The 2020-21 Budget signalled that fiscal principles would be reviewed for the 2021-22 Budget.
This replacement Charter sets out updated fiscal principles that retain targeting of full funding of long-term liabilities and maintaining tax competitiveness and, in the medium term, aims to stabilise net debt and restore operating surpluses:
Principle 1: Stabilise the General Government Sector net debt to revenue ratio at sustainable levels in the medium term and target reductions in the net debt to revenue ratio in the long term.
Principle 2: Ensure that average annual growth in General Government Sector expenditure in the medium term is below the average annual growth in General Government Sector revenue to deliver fiscally sustainable net operating surpluses.
Principle 3: Target continual improvements in net operating surpluses to ensure that, in the medium term, net cash flows from investments in non-financial assets will be funded primarily from net cash inflows from operating activities. The capital program will focus on supporting a productive economy, jobs, and ensuring a pipeline of infrastructure that responds to population growth.
Principle 4: Maintain competitive taxation by ensuring that, on a per capita basis, Queensland has lower taxation than the average of other states.
Principle 5: Target the full funding of long-term liabilities such as superannuation and workers’ compensation in accordance with actuarial advice.