What the 2026-27 Federal Budget means for Qld motorists

Queensland roads: A bigger slice of the pie

While roads and transport weren't the centrepiece of this year's Budget, Queensland has done well compared to other states. 

Over the next four years, Queensland is set to receive around a third of all national road investment, well above our 21% share of the population.

Key investments for Queensland include:

• $812.5m for Stage 2 of the Bruce Highway upgrade between the Gateway Motorway and Dohles Rocks Road, north of Brisbane
• $251.2m towards the Bruce Highway Tiaro Bypass
• $10m for design and pre-construction work on the Pacific Motorway Exit 45 upgrade at North Ormeau – a project RACQ specifically called for in our pre-budget submission
• $869.5m over four years for Queensland's Roads to Recovery program, helping local councils maintain and improve local roads
• A boosted national Active Transport Fund of $500m over 10 years to support cycling and walking infrastructure

RACQ welcomes these investments, however, we need to see the Federal and Queensland Governments work better together to deliver the road, rail and bus investments to keep South East Queensland moving in the lead-up to the 2032 Olympics and beyond.

Fuel security: Relief now, but questions remain

With the conflict in the Middle East disrupting global oil supply and pushing fuel prices higher, fuel security was a major focus of this Budget.

The Government committed $14.8b to strengthen Australia's fuel resilience, including:

• $3.2b for a new government-controlled fuel reserve holding around one billion litres of diesel and jet fuel
• Expanding mandatory fuel stockholding requirements to 50 days
• $2.9b to temporarily halve the fuel excise and reduce heavy vehicle charges to zero, but only until 30 June
RACQ backs initiatives that help motorists save at the pump, but we believe an independent inquiry identifying where taxpayer money would be best spent to address fuel security and distribution is essential. 
We should also be prioritising immediate actions to reduce our nation’s reliance on imported oil and protecting us from future oil price shocks, including biofuels production and EV charging infrastructure investment in regional Australia.
Members should also be aware that the temporary fuel excise cut will end on 1 July, meaning the full excise rate of 52.6 cents per litre will return. 

RACQ will continue to monitor fuel prices closely and advocate for fair pricing for Queenslanders.

Safer Roads: a continued focus

The Budget includes modest increases to road safety funding, with Queensland's share of the national Black Spot Program rising slightly to $121.6m over four years. 

RACQ will continue to push for further increases to this consistently oversubscribed program.

Nationally, the AAA has welcomed the Government's commitment to fund no-blame road death investigations, a measure the motoring club sector has been championing for almost two years.

What’s happening with electric vehicles?

The Budget confirmed the EV Fringe Benefit Tax exemption will be wound back in two stages. 

From April 2027, the full exemption will only apply to battery electric vehicles priced under $75,000, with a reduced 25% discount for more expensive models. 

By 2029, the discount will be reduced to 25% for all new EVs. Existing lease arrangements won't be affected.

The Government also confirmed it is continuing to work with states and territories on a road user charge for electric vehicles, though no further details were provided.

Inland Rail: A setback for Queensland freight

The Budget confirmed that the Inland Rail project has been significantly scaled back due to cost blowouts. 

The rail link will now terminate at Parkes in central New South Wales, roughly halfway to its originally planned Brisbane destination.

For Queensland, this means more freight will remain on our road network for the foreseeable future, adding pressure to major corridors and the Port of Brisbane. 

The Federal Government says it will preserve the rail corridor north of Parkes for a potential future government to revisit.

The bottom line for Queenslanders

This Budget delivers some welcome investments for Queensland roads and takes initial steps on fuel security, but RACQ believes more needs to be done to future-proof our transport network and reduce our vulnerability to global fuel shocks. 

We'll continue to advocate on behalf of our 1.7m members for better roads, fairer fuel pricing and smarter long-term transport planning.