Insights from the 2025–26 Queensland State Government Budget
The Queensland Government’s 2025–26 Budget was handed down this week, representing the first Budget under the new Crisafulli LNP Government. The measures announced have a focus on fiscal repair, private sector confidence, and investment in long-term productivity.
For Queensland business leaders - especially in manufacturing, life sciences, digital technology, agribusiness, and the broader innovation/start-up sector - this budget is worth considering to understand the new government’s priorities. In particular, it provides several funding measures and policy signals that could directly impact your strategies over the next 4 years.
Below are Budget Announcement highlights we’ve identified across several key industries and sectors:
1. Budget & Economic Overview:
Forecast Gross State Product growth of 2.75% and real wages growth of 3.5% in 2025–26 indicating solid underlying economic momentum.
Debt projections down to $205.7 billion by 2028–29 (a reduction from Labor’s $217.8 billion projection).
No new or increased taxes providing a degree of assurance for businesses seeking regulatory and fiscal stability.
Queensland Productivity Commission reinstated to drive business-friendly policy reform.
2. Manufacturing:
$79.1 million invested over 3 years via the Transforming Queensland Manufacturing Program to facilitate pathways to export opportunities and enable reshoring and onshoring by Queensland manufacturers, including $15 million to expand the Made In Queensland grant program as announced pre-election.
The Queensland Train Manufacturing Program to receive $950 million to drive job creation in Maryborough
$10 million to establish 2 new manufacturing hubs in Toowoomba and the Sunshine Coast.
$60 million to construct the new Moreton Bay TAFE Centre of Excellence at Petrie, which will include an Advanced Manufacturing Hub.
3. Digital Technologies:
$1 billion over 4 years (including an additional $650 million) to establish a Queensland Government Digital Fund to modernise IT and digital infrastructure across the public sector, with expected spillover benefits into supply chain, procurement and regulatory platforms.
4. Life Sciences:
Additional funding of $95 million over 4 years to deliver a Health Sciences academy in Rockhampton as part of the Queensland Government’s Easier Access to Health Services Plan.
Biomedical industry benefits expected to flow from additional funding of $180.6 million over 4 years for the Sovereign Industry Development Fund.
5. Agribusiness:
Identification of a strategy to deliver a $30 billion Agriculture Industry by 2030 supported by a range of policies and investments as part of a broader 25-year primary industries blueprint.
$30 million invested in the Sowing the Seeds Farming Innovation Fund, Queensland’s first agriculture innovation fund, designed to promote new technologies and practices in Queensland farming and primary industries.
$37.7 million to increase water storage and capacity to protect agriculture and deliver water security.
$51.9 million for key drought resilience initiatives and new investment of $60.9 million to boost regional biosecurity and deliver new frontline biosecurity offices.
6. Clean Energy & Renewables:
Reduced investment in clean energy and renewables with support redirected to traditional energy projects (e.g. Brigalow Gas Peaker Project), potentially jeopardising Queensland’s ability to reach net zero by 2050.
Cancellation of the major Pioneer-Burdekin Pumped Hydro Project and a shift towards supporting smaller, more manageable hydro-electric projects, including $79 million to progress ongoing development of hydro projects at Mt Rawdon and Stanwell.
Confirmation that a more detailed plan for the Queensland Government’s energy approach (its Energy Roadmap) will be released later this year.
7. Other Support for Startups & Innovative SMEs:
$44.7 million Small Business First Agenda, as part of a previously announced Small and Family Business First Action Statement, with key initiatives including:
Establishment of regional innovation and start-up hubs
Two new grant programs
Concierge-style support for small businesses navigating government requirements.
$19 million over 4 years for apprentice wage subsidies for small businesses.
$11.5 million over 4 years to provide small business owners & managers with micro-credential courses to improve their planning and processes, in partnership with the University of the Sunshine Coast.
Restoration of business financial counselling and wellness coaching programs.
Final Thoughts
The 2025-26 Budget Announcement provides useful insights for Queensland’s private sector regarding the new government’s priorities and its support for particular industries and sectors.
For Queensland business leaders, now is the time to:
Reassess your business’ eligibility for government funding, grants, training, procurement opportunities or other forms of support that have been announced or extended.
Engage with relevant business or innovation hubs, peak bodies and investment program operators to leverage the opportunities they can provide.
Identify State government departments and ministers responsible for the programs relevant to your business and connect with them to ensure that you remain informed of new opportunities stemming from the Crisafulli government’s emerging funding priorities.
If you'd like further information, particularly regarding potential government funding available for your sector, or to help plan for and navigate future State Government grant opportunities, please reach out to our team at Intellect Labs.