2026–27 Queensland Budget: What it means for the energy and resources sector

Regarded by some as a "steady as she goes" budget, the 2026–27 Queensland Budget signals that the energy and resources sector (oil and gas and critical minerals in particular) is central to the Crisafulli Government’s strategic priorities for the State of Queensland and that Queensland is still open for business.

The Budget promotes investment in fuel security through the Taroom Trough Development Plan, continuation of the $5.2 billion Energy Roadmap, funding to maintain existing generation assets, and a focus on critical minerals against the backdrop of regulatory streamlining and investment attraction.

Participants across the electricity, gas and mining sectors should consider the implications of these measures for project economics, tenure management and future investment decisions.

Key takeaways from the 2026–27 Queensland Budget 

On 23 June 2026, Treasurer David Janetzki delivered the Crisafulli Government’s second Queensland Budget. Framed against a backdrop of global economic uncertainty (including the geopolitical disruption to oil supply through the Strait of Hormuz) the Budget commits to no new or increased taxes and emphasises restoring Queensland’s sovereign capabilities in energy and resources.

At a glance, the Budget includes:

• a $19 million investment in the Queensland Fuel Security Plan (including fast-tracking the Taroom Trough Development Plan) alongside initiatives to attract renewed investment in Queensland’s coal and gas resources;

• continuation of the $5.2 billion Energy Roadmap (inclusive of an increase in the Electricity Maintenance Guarantee to $1.8 billion over the next five years to maintain and extend the longevity of existing state-owned coal fired, gas and pump hydro generation assets);

• $146 million to accelerate the extraction, processing and export of critical minerals through a mixture of capital investment and the $100 million Queensland Critical Minerals Fund; and

• increased funding for State departments tasked with implementation of the suite of new regulatory obligations for renewables assessment forming part of the recent changes to impact assessments for wind and large-scale solar projects arising from the Planning (Social Impact and Community Benefit) and Other Legislation Amendment Act 2025 (Qld).

Proponents of energy and resources projects in Queensland should:

• assess the impact of new regulatory obligations for renewables assessment on current and planned wind and large-scale solar energy projects;

• consider the implications of enhanced Queensland Revenue Office compliance focus in respect of royalties; and

• evaluate opportunities arising from the Taroom Trough Development Plan, Abandoned Mine Lands Program, the Critical Minerals Fund and new exploration area releases.

Taroom Trough and the Queensland Fuel Security Plan

A centrepiece of the Budget’s economic strategy is the Queensland Fuel Security Plan, which represents a total funding package of $19 million over two years. The plan has three stated objectives:

1. to fast-track development of the Taroom Trough;

2. to optimise production in the Cooper-Eromanga Basin; and

3. to invest in new refining capability in Queensland.

Of the $19 million allocated to the Queensland Fuel Security Plan, $11.9 million over two years has been allocated to the Department of State Development, Infrastructure and Planning (DIP) specifically for the development of the Taroom Trough Development Plan. A further $5 million in additional funding (with $2.1 million met internally by the Department of Natural Resources and Mines, Manufacturing and Regional and Rural Development (DNRM)) has been allocated to accelerate domestic fuel supply priorities, undertake targeted assessment of Queensland’s oil resource potential and evaluate domestic refining capability.

The Government intends to accelerate mass production at the Taroom Trough, through the release of 18 new prospective petroleum and gas, coal, and mineral exploration areas.

The Budget also references boosting Queensland’s onshore fuel storage capacity by "unlocking land" near ports and fast-tracking new investment, including by fast-tracking the renewal of BP's lease of the Bulwer Island Refinery in order to enable it to expand its liquid fuel storage by an additional 54 million litres.

These measures signal that:

• petroleum and gas explorers and producers seeking an interest in the Taroom Trough and/or with interests in the broader Surat and Bowen Basins, can expect the policy direction to shift toward accelerated development; and

• the Queensland Government may be willing to fast-track or otherwise "unlock" land for proponents of potential liquid fuel storage or refinery facilities.

Participants should monitor the release of the Taroom Trough Development Plan for details of any specific regulatory facilitation, infrastructure commitments or fiscal incentives that may accompany the Plan’s implementation.

Critical minerals

Critical minerals^[1] continue to play a central role in the Budget's strategic outlook for the Queensland resources sector. The Budget flags investment in critical minerals projects in Queensland via:

• the $100 million Queensland Critical Minerals Fund managed through the Queensland Investment Corporation, which is intended to accelerate strategically important projects through equity, debt, royalty or hybrid investments of up to $30 million in critical minerals projects;

• $32.3 million (including $21.3 million of internal funding) of funding for the "Unlocking Resources Potential and Management of Key Risks Within the Abandoned Mine Lands Program", which supports re-commercialisation at viable sites, including opportunities for reprocessing critical minerals or other high-value minerals, and essential operating and safety works at high-risk mine sites;

• a $4.5 million capital investment in common-user infrastructure, including the Cleveland Bay Industrial Park in Townsville which is a common-user facility focused on trial production processes for critical minerals such as vanadium;

• $41.6 million of internal funding over three years to enhance investment attraction, build value chains for critical minerals growth and ensure big mineral projects come online in a timely manner, especially in the North West Minerals Province and surrounding regions.

Coal and other resources

No new royalties, but an increased focus on compliance

The Budget contains no new or increased royalties, taxes or levies affecting the resources sector. The Government has emphasised investment certainty and stability as key themes, with the Treasurer noting that Queensland is “attracting renewed interest in Queensland’s world-class metallurgical and thermal coal assets, underpinned by streamlined approvals and a stable operating environment.”

Resourcing for the Queensland Revenue Office’s compliance and debt recovery activities has been increased by an additional $60 million over four years as part of an increased focus on compliance with existing revenue laws (including royalty obligations).

This is forecast to net an estimated $220 million in additional revenue and $612 million in increased collections of revenue and penalty debt over four years, noting this figure includes non-resources-based based revenue such as the payment of transfer duties on land. Nonetheless, resources sector participants should be aware that enhanced compliance activities may result in more rigorous scrutiny of royalty calculations and payments.

Smelting and refining

A major investment of up to $300 million over four years has been allocated to secure the ongoing operations of the Mount Isa copper smelter and Townsville refinery. This is subject to the completion of a transformation study and is matched by the Commonwealth Government under a Federation Funding Agreement, for a total package of up to $600 million.

Key deliverables and focus of DNRM

The Service Delivery Statements released by DNRM as part of the budget papers offer the following insight into the focus areas for that department in the 2026-27 financial year which may be relevant to the energy and resources sector:

• progressing initiatives and reforms to improve competitiveness, reduce delays and improve approval timeframes;

• undertaking the Mount Isa Transformation Study to identify strategic opportunities that support the North West Minerals Province;

• placing an increased focus on strengthening the resilience and competitiveness of the Queensland manufacturing industry; and

• supporting cross-government partnerships to progress fuel initiatives.

Accordingly, proponents of energy and resources projects which may touch upon these focus areas may wish to frame engagement with DNRM in the context of these key focus areas and deliverables.

Renewable electricity generators and the Energy Roadmap

While the Budget continues the rollout of the $5.2 billion Energy Roadmap (inclusive of an increase in the Electricity Maintenance Guarantee to $1.8 billion over the next five years to maintain and extend the longevity of existing state-owned coal fired, gas and pump hydro generation assets) , there are few inclusions aimed at promoting investment in renewable energy generation. Rather, the focus of the budgetary measures for renewable energy is on increasing the funding allocated to the Department of State Development, Infrastructure and Planning to facilitate the implementation of new regulatory obligations for renewables assessment and for new infrastructure planning commitments.

This largely falls off the back of the Planning (Social Impact and Community Benefit) and Other Legislation Amendment Act 2025 (Qld) which provided that proponents of:

• all wind farms;

• solar farms with a maximum instantaneous electricity output of 1MW or more; and

• battery energy storage systems with a maximum instantaneous electricity output of 50MW or more,

must now satisfy additional obligations before their development application can be lodged.

Queensland Government capital investments

Borumba Dam

The Budget allocates $324 million in 2026–27 to progress investigations to increase the capacity of Borumba Dam, alongside progressing the delivery of the Borumba pumped hydro project.

CopperString Energy Project

The Budget also includes provision for a $3.2 billion investment in the CopperString energy project, which is a high-voltage transmission line connecting the North West Minerals Province to the national electricity grid.

For generators, CopperString represents both a potential connection pathway for projects in north and north-west Queensland and increased competition for network access as the transmission network expands.

For proponents of critical minerals and other resource projects in the North West Minerals Province, CopperString may allow for the connection of their projects to the national electricity grid, rather than relying on local or project-specific generation.

Electricity Maintenance Guarantee

The Budget signals additional investment in Queensland State-owned fossil-fuelled electricity generation. This includes an increase of $520 million invested in the Electricity Maintenance Guarantee ($1.8 billion total over five years) in respect of major unit overhauls at the Queensland State-owned Wivenhoe, Stanwell, Tarong and Kogan Creek power stations in 2026–27.

Brigalow Gas Peaker

The Budget references the Brigalow Gas Peaker as a capital project in the Darling Downs region. This 400MW capacity, 12-turbine gas peaking project is expected to be delivered via the Queensland State-owned CS Energy by 2029.

At a glance...

The 2026–27 Queensland Budget presents a broadly positive outlook for the energy and resources sector in Queensland, characterised by fiscal stability (no new or increased taxes or royalties), targeted investment in fuel security and critical minerals, and a stated commitment to regulatory streamlining and investment attraction.

The Budget does, however, signal a shift away from the previous Queensland Labor Government's focus on renewable energy, in favour of more traditional, fossil-fuelled energy sources and projects.