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January 30, 2026 — 12:12pm
More than 100,000 Queensland public servants are on track to pocket an inflation-driven pay bump of up to $500, heaping further pressure on the state’s ballooning debt.
Following higher-than-expected inflation figures this week in which Brisbane led the nation on 5.2 per cent, analysis suggests several workforces are set for a topped-up annual wage rise.
The potential for inflation uplift included in state wage deals inked last year forced the Crisafulli government to set aside $169 million in its December budget update – amid concern from ratings agencies and economists.
Bargaining concessions from government last year added $345 million above the budgeted cost of its blanket wage policy, dictating rises of 3 per cent in 2025-26, and 2.5 per cent in the following two years of the deals.
But the finalised deals spanning police, firefighters, paramedics, nurses, doctors, health administration staff, and non-teaching school staff and others, also featured potential inflation-related pay bumps.
Should the March inflation figure for Brisbane pass the agreed pay rise for that financial year, pay will instead be matched to inflation – to a 2025-26 cap of up to 0.5 per cent.
For a public servant on the average sector salary of about $100,000, this could add up to $500 to their base annual pay.
Any inflation-adjusted increase to pay rises will also be backdated across the entire financial year, and form the base pay rate from which future rises are also calculated.
Independent economist Saul Eslake said while the December quarter spike in Brisbane inflation was essentially an anomaly caused by energy rebates ending, the March figure was likely to be above the 3 per cent pay bump trigger.
He said that meant the spike was essentially caused by the former Miles government’s extensive pre-election rebates, criticised by some as an inflation-driving attempt to buy votes.
Because of this, he believed it was “ludicrous that the unwinding of that is the catalyst for the paying of more taxpayer money to a smaller group of public servants”.
“I would think the Queensland government probably needs to prepare itself to have a stoush over that,” Eslake told this masthead.
“Queensland isn’t in the worst [budget] position of Australian states … but Queensland’s financial position has deteriorated quite significantly from what was the best in the country.
“And this would be another serious blow to that.”
Treasurer David Janetzki’s office stressed the headline annual inflation rise in Queensland to November was below the national headline figure, which meant the growth revealed this week was caused by short-term factors – primarily the end of electricity rebates.
He also criticised Labor for enacting temporary cost-of-living measures, saying his government was “doing its bit to ease cost pressures facing families”.
Deputy Opposition Leader Cameron Dick blamed the government for high inflation and said while the extra pay bump might help some, many people were struggling.
“David Crisafulli is delivering the highest state inflation in the country as his affordability crisis deepens, and it will cost the state’s budget hundreds of millions of dollars,” he said.
While in government, Labor had argued its power bill rebates had helped ease inflation by reducing the electricity bill element of the official figures.
In December, the state government revealed in its midyear budget update the state operating balance fell almost $400 million further into deficit.
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