Palaszczuk leaves behind a profligate legacy

By quitting before being pushed out by the union bosses, Annastacia Palaszczuk has protected her political legacy as a Queensland Labor hero who led the party to three election wins, including a final victory in 2020 assisted by her overly harsh and highly parochial state border closures during the global pandemic.

But having served for nine years after unexpectedly becoming the “accidental premier” at the 2015 election, when the electorate revolted against the economic reform and privatisation agenda of Campbell Newman, the question now is: what foundations for future prosperity does Ms Palaszczuk leave behind for her successor in the Sunshine State?

Ms Palaszczuk bequeaths the next premier a temporary budget surplus built on a populist jacking up coal royalties that cast sovereign risk over the resources sector, which has traditionally powered the Queensland economy.

Ms Palaszczuk’s successor will also inherit a state-owned electricity network and Clean Co. renewables investment vehicle, which along with an aggressive plan to phase out of the coal-fired generation entirely by 2035, is set to plunge the state budget back into deficit next year and push up borrowing and debt to $147 billion by 2026-27. Meanwhile, billions of dollars are being poured into clean energy projects, especially pumped-hydro storage.

She also leaves behind a predilection for ad hoc taxes to pay for a bigger public sector – such as the aborted land tax hit on interstate property investors – which has undermined Queensland’s reputation as a business-friendly and lower-taxing jurisdiction.