The Australian Industry Group welcomed the opportunity to provide a submission to the Queensland state budget for 2025-26.

As an organisation that has represented and supported industry for over 150 years, the Australian Industry Group is keen to work with the Crisafulli government.

We believe Queensland would benefit from a robust commitment to manufacturing and a multi-year industry policy, coordinated with federal programs. Members tell us that state and federal tax and policy settings are combining to make business conditions extremely difficult. The economic data shows conditions are the worst since the 1990s. The case for decamping to locations like Asia or the USA is very compelling and compounded by the current geopolitical chaos. A clear industry policy, backed by constructive support for innovation and supply chain development would be a welcome and valuable counterbalance.

It is clear the financial and economic health of Queensland is under significant pressure.

Cost blowouts on infrastructure, the looming Olympic and Paralympic commitment and the three significant weather events this summer are just some of the pressures on state finances that we note.

Under a clearly articulated vision for Queensland the budget should define the government's priorities to give businesses the confidence to invest.

The key priorities that should be advanced in the 2025-26 Queensland budget comprise:

• A plan to diversify the economy including an industry policy, acknowledging the opportunity for technology-based industries (including Quantum), the need for sovereign capabilities, and more commercially successful innovation.
• A comprehensive strategy to improve our education and skilling system, starting from the participation in early childhood education through to the performance of schools, higher education and vocational education, noting the need for a skilling system that drives productivity and attracts investment.
• A commitment to ensuring taxation settings support Queensland's competitiveness, and foster investment, productivity and job creation.
• A wholistic vision around energy and climate policy that plots a pathway to the energy infrastructure, energy efficiency and markets of a net zero future.
• Efforts to tackle housing supply and internet coverage which stifle business productivity and growth.

The Australian Industry Group has deep expertise in a raft of policy areas including trade, defence and emerging industries, and the benefit of real time intelligence from businesses of all shapes and sizes about operating conditions, opportunities and challenges.

We welcome the pause on BPIC and the creation of the Queensland Productivity Commission as a show of leadership and a commitment to a modern and prosperous economy, and we look forward to collaborating with ministers and their staff, and departments to help Queensland flourish.