Fiscal strategy

Charter of Fiscal Responsibility

The Charter of Fiscal Responsibility is a key document prepared by the Queensland Treasurer for the Legislative Assembly outlining how the government manages public money responsibly. It is required under the Financial Accountability Act 2009, which provides the framework for managing Queensland’s finances in a transparent and efficient way.

The Charter of Fiscal Responsibility outlines the key financial principles that guide the government’s fiscal objectives. The principles are designed to ensure the state’s finances remain sustainable and resilient over time and thus support the government in delivering essential services such as health, education and transport, funding major infrastructure projects, and fostering economic growth and job creation across Queensland.

The Treasurer provides regular updates to the Legislative Assembly on how well these objectives are being met. This process helps keep Queenslanders informed about how public money is being managed to meet the state’s priorities.

Principle 1: Stabilise the Non-financial Public Sector debt to revenue ratio and General Government Sector net debt to revenue ratio at sustainable levels in the medium term and target reductions in the 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.

Principle 6: Target productivity improvements across the private and public sectors to increase living standards for Queenslanders over the medium term.