The State of Queensland is running large operating deficits, averaging 3.2% of operating revenue between FY25–FY27. The operating deficit is expected to peak at nearly 6% in FY26.
Deficits after capital spending are extremely large: 17–20% of revenue through FY27. A return to operating surplus is not expected until FY28.
S&P Global Ratings has affirmed Queensland’s AA+ long‑term and A‑1+ short‑term credit ratings, but the outlook remains negative due to concerns about weakening budget performance and rising debt. The state’s large infrastructure program, softening revenues, and rising expenses are driving significant fiscal deterioration over the next several years.
