An Olympic‑sized balancing act looms for a state government as it ramps up its 2032 Games preparation.
Queensland’s Liberal National government has vowed to use Tuesday’s state budget to keep the Brisbane Games on track as it bankrolls a massive Olympic construction program.
“We’re seizing the generational opportunity presented by the 2032 Olympic and Paralympic Games to create legacy infrastructure for all Queenslanders that will drive tourism and support grassroots sports throughout the state,” Treasurer David Janetzki told AAP.
“After 1200 days of delay and mayhem under the former government, we’re getting on with the job of delivering the Games.”
The government must balance short‑term relief with long‑term financial risks, University of Queensland Business School professor Shaun Bond said.
“This budget tries to walk a tightrope between easing cost‑of‑living pressure now and not spooking markets with the scale of its debt,” he told AAP.
The government has already confirmed a record $119.2 billion infrastructure program over four years, including $55.9 billion for transport and main roads.
Sources have told AAP there will be no change to previously announced Olympic spending in the budget.
In last year’s LNP budget, $145.5 million was allocated to Olympic infrastructure.
The cost was set to blow out to $1.7 billion over the next four years, with $950 million allocated to the construction of the athletes’ villages and $832 million for procurement and delivery of venues.
The LNP government has insisted it will avoid tax increases and reduce debt despite increasing Olympic spending.
Coal royalties were set to provide some relief due to current elevated prices but it was a “volatile source of income”, Prof Bond said.
Property-related revenue was also expected to be much leaner with stamp duty likely to weaken as the market slowed and higher interest rates made an impact, he said.
It remains to be seen whether the budget flags a surplus in the coming four years.
The state’s debt is expected to reach a record $205 billion by 2028/29.
Queensland’s AA+ credit rating was downgraded for the first time in 15 years when it went from stable to negative in February 2025.
It was warned there was potential for further drops if the budget was not balanced within two years, a move that would ensure higher borrowing costs in the race to complete 2032 projects.
An independent economic think tank said only about a third of Queensland’s capital program was being funded from cash flow, meaning it was borrowing heavily to build at a time when interest costs were rising.
“Spending levels are excessively high, its income swings wildly depending on what coal prices are doing, and it now has to build an enormous amount of infrastructure for the 2032 Olympics,” e61 Institute chief executive Michael Brennan said.
It ensured the government had little room for error in the budget, he said.
There has been some relief flagged for Queenslanders with electricity prices for regional households expected to fall 6.9 per cent from July and 8.1 per cent for small businesses.
Water bills in southeast Queensland will also be frozen, saving the average household about $130 over two years.