Our Fair Share: Cost of Living Relief in North Queensland

As the Queensland State budget approaches, it's crucial to highlight the stark differences in cost of living pressures faced by residents in North Queensland compared to those in South East Queensland (SEQ). While recent government initiatives have focused on reducing public transport fares in Brisbane, it's time to ensure that North Queensland receives its fair share of cost of living relief.

The Inefficiencies in Northern Public Transport

In Townsville, more people are resorting to hired scooters instead of buses due to inefficient services.   This underscores the dire need for improved public transport infrastructure in the North, rather than temporary, election-timed fare reductions in the South.

Political Maneuvers and Economic Risks

The announcement of 50¢ bus and train rides for six months is a pre-election cash splash, estimated to cost $150 million. While it might save commuters thousands in ticket fares, fuel, and parking costs, economists warn it could drive up inflation. Such measures appear more as attempts to woo voters rather than addressing the fundamental cost of living issues.

Recent Government Initiatives

• State Government: A $1000 energy bill rebate, with expectations for further cost-of-living support in the upcoming state budget.
• Federal Government: A $300 energy rebate announced in the budget.
• Energy Providers: An 18% pay rise for 5000 state energy workers, including reducing work hours from 38 to 36 per week, necessitating approximately 278 new employees.

The North's Call for Fair Treatment

North Queensland is chasing budget measures that provide tangible cost of living relief for homeowners and current residents. Incentives for residential investors to add stock and remain in the local long-term rental market are essential. Moreover, better-targeted public housing is a pressing need in the North.

The state budget must recognize that North Queensland's per capita contribution to the state economy and public revenue is higher than that of SEQ. Yet, businesses and households in the North face higher cost of living pressures.

The Economic Landscape of North Queensland

• Townsville Region (March 2024): 128,100 jobs, 6,700 unemployed, 5% unemployment rate, and a 68.4% participation rate.
• Housing Market: Townsville's median dwelling price is $448,051, with a 42.4% growth in five years and 15.7% in the past year. Rents are rising faster than most regional cities, with the median rent at $507 per week.
• Investor Costs: Higher insurance and local government taxes contribute to the increased cost of living.

Clayton Cook's Perspective

Managing Director of TP Human Capital , Clayton COOK , emphasized the struggles faced by northern households and businesses. "Housing across the north, including rental, investor, and owner-occupiers, has been a challenge for a long time," he said. "As an example, Townsville median dwelling prices and rents are rising faster than in most cities in Australia."

According to a recent Corelogic report, Townsville's median dwelling price is $448,051 as of April 2024. This represents a 42.4% growth over five years and 15.7% in the past year, placing Townsville in the top five regional cities for price growth. Cook noted that this fast-paced growth adds to local cost of living and business recruitment pressures.

"Townsville rents continue to rise faster than most regional cities," Cook added. "The median rent for a dwelling in April 2024 was $507 per week. Higher investor costs, including insurance and local taxes, have prompted many northern residential investors to sell their assets, adding to tighter residential vacancy conditions and fueling local rent rises, making it harder for local businesses to recruit."

The Call to Action

TP Human Capital is urging the state government to provide more than just public transport fare reductions for Brisbane. We need specific cost of living relief measures for North Queensland, such as cheaper stamp duty on home and business insurance, and assistance for northern businesses to recruit, retain, and train staff.

"It's time for the residents and businesses of Northern Queensland to voice their concerns," Cook said. "We understand the state budget is a complex matrix of priorities and fiscal responsibility mixed with expensive Olympics infrastructure commitments. We hope the state budget provides the north with Our Fair Share of state public capital investment and relieves cost of living pressures across the north as much as it is doing in the south."