Key Takeaways:
- The Queensland LNP government has announced a new plan to deliver 2,600 new hospital beds across the state by 2032, at a cost of approximately $18.5 billion.
- The new plan replaces the previous Labor government’s plan to deliver 2,200 new beds by 2028, which was deemed undeliverable.
- The timeline for the delivery of beds at various hospital projects across the state has been pushed back, with some projects now expected to be completed by 2031 or 2032.
- The government has also handed down the mid-year fiscal and economic review, which reveals a sizeable drop in coal royalties and an uplift in transfer duty revenue.
- The deficit for 2025-26 is now expected to be around $8.97 billion, with total debt projected to reach $204.9 billion by 2028-29.
Introduction to the New Hospital Plan
The Queensland LNP government has revealed its new plan to deliver 2,600 new hospital beds across the state by 2032. This plan replaces the previous Labor government’s plan to deliver 2,200 new beds by 2028, which was deemed undeliverable. The new plan will cost approximately $18.5 billion and will be rolled out in a staged fashion, with some hospitals starting to deliver beds as early as 2027. The government has stated that the new plan has a "realistic deadline" and provides a "sensible pathway" for the delivery of hospital beds.
Changes to Hospital Project Timelines
The timeline for the delivery of beds at various hospital projects across the state has been pushed back. For example, the Coomera hospital project, which was originally expected to be completed by the second half of 2027, will now be completed in two stages, with 400 beds delivered by 2031 and an additional 200 beds delivered by 2032. Similarly, the Logan hospital project, which was expected to be completed by December 2026, will now be completed by 2027. The QEII hospital on Brisbane’s southside, which was expected to have 112 new beds by the second half of 2027, will now have them by 2028.
Hospital Projects and Timelines
The government has provided updated timelines for several hospital projects across the state. The Redcliffe Hospital project, which was expected to deliver 204 beds by quarter four of 2027, will now deliver 210 beds by 2032, although the "first beds" will be delivered by 2027. The Townsville hospital project, which was expected to deliver 143 beds by quarter four of 2026, will now deliver at least 165 beds by 2028. The Mackay hospital project, which was expected to deliver 128 beds by December 2026, is still in the planning stages, with the government yet to come up with a timeline. The Prince Charles Hospital upgrade, which will deliver an extra 93 beds, is also still in the planning stages.
Mid-Year Fiscal and Economic Review
The government has handed down the mid-year fiscal and economic review, which reveals a sizeable drop in coal royalties and an uplift in transfer duty revenue. The deficit for 2025-26 is now expected to be around $8.97 billion, with total debt projected to reach $204.9 billion by 2028-29. The review notes that coal royalty revenue has taken a significant hit, with income from the charge for 2025-26 revised from $6.17 billion to less than $5.39 billion. The government has stated that it has no plans to change the taxes charged, and will instead focus on supporting cost of living and home ownership.
Government Response and Next Steps
The government has stated that the new hospital plan is "well thought through" and provides a "realistic deadline" for the delivery of hospital beds. The Health Minister, Tim Nicholls, has said that the plan is about providing Queenslanders with a sensible pathway that has been properly worked through. The government will continue to work on the planning and delivery of the hospital projects, with the aim of having all 2,600 new beds online by 2032. The Treasurer, David Janetzki, has stated that the mid-year fiscal and economic review is "broadly in line" with the numbers in the budget, and that the government will continue to monitor the state’s finances and make adjustments as necessary.