Cairns Economic Monitor - August 2025
Cairns Defies the Trend: Growth in Approvals and Employment
Building approvals in Cairns are slowly gaining momentum - a welcome sign even though numbers still fall short of easing the region’s housing shortage. Encouragingly, local growth is outpacing both State and National trends, with the 2025–26 Queensland Budget pledging significant investment in social and affordable housing for the region.
Meanwhile, the Reserve Bank surprised many by holding the cash rate at 3.85% in July, opting to wait for June quarter inflation data before making a move. That data is now in, and with both headline and core inflation falling within target, rate cuts could be on the horizon.
Nationally, there are early signs of a softening labour market, but Queensland remains resilient. In Cairns, full-time employment is thriving, workforce participation is near 15-year highs, and unemployment remains steady at 4.3%.
Commentary from Michael Wilson
August is shaping up to be an important month for tax reform in Australia. Following their election victory, the government is gauging public support for a range of significant changes. Topics under consideration include adjustments to superannuation, a possible reduction of the CGT discount, new limits on negative gearing, a potential GST increase, and company tax cuts for small businesses. With such major proposals on the horizon, it will be interesting to see whether the government also addresses spending efficiency, rather than focusing solely on raising additional revenue.