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Ms Palaszczuk said such a large investment in the arts had not been made since the construction of the Gallery of Modern Art,which began in 2004 and was completed in December 2006.

"Brisbane is an important market for touring productions especially major musicals,"she said.

"Queenslanders love live theatre and performance,particularly musicals,and this new theatre will also meet the ever-growing demand to present multiple art forms including theatre,opera,ballet and musicals.

"QPAC is now the busiest theatre complex in Australia ... Building a new theatre is a must to ensure we can keep attracting even more big shows and more visitors to our capital city.

"I have said Queensland Ballet needs a new home,having outgrown the 850-seat Playhouse Theatre,the new larger theatre will enable the company to perform to an audience of double the size within a season."

Deputy Premier Jackie Trad said QPAC scheduled more than 1000 performances every year that saw 1.3 million visitors come through the doors in 2017.

Arts Minister Leeanne Enoch said she could remember QPAC first opening in 1985 and what an impact it had on the state.

"We have amazing small,medium and established companies and this will allow them to tell their unique,beautiful Queensland stories,"she said.

The announcement was held on the Aladdin stage. Left to right:Queensland Performing Arts Trust chairman Professor Peter Coaldrake,Arts Minister Leeanne Enoch,Aladdin's Princess Jasmine (Shubshri Kandiah),Premier Annastacia Palaszczuk,Aladdin (Ainsley Melham),Deputy Premier Jackie Trad,QPAC chief executive John Kotzas.Credit:Fairfax Media - Toby Crockford

Ms Enoch said the new theatre would feature state-of-the-art technology to allow shows to be live- streamed to regional Queensland,which accounts for 30 per cent of QPAC's attendance.

QPAC chief executive John Kotzas said on Sunday it was the"most exciting day for QPAC in a long,long time".

"The demand in Queensland is greater than our ability to deliver at the moment,"he said.

“This will be celebrated news for live performance in Queensland,for our creatives and artists practising in Queensland,for our technicians and specialists and for our audiences.

“The announcement of a new theatre expands what we have achieved over the past 30 years and broadens our thinking about the future.

“The possibilities are endless for deepening our engagement with audiences and the artists and companies we invite to QPAC. It expands the art-forms presented and how we present them.

“The digital and technological advances available in new theatre infrastructure also gives promise to QPAC’s intentions of growing the reach of its programs to audiences beyond Brisbane including regional Queenslanders.”

Mr Kotzas said the announcement would further consolidate Queensland and the state's south-east as a hub for theatre and the arts.

He added that the new theatre would allow the audience to be close to the performers and was the perfect size to take the strain off the 2000-seat Lyric Theatre.

However,LNP leader Deb Frecklington said her party had been pushing for a new theatre for years and was negotiating a deal which would see no cost passed onto the taxpayers.

“The LNP was in discussions with Star Entertainment to deliver the second theatre at no cost to taxpayers through the Queens Wharf development,"she said.

“Labor lost this deal. It’s a shame Labor has decided to slug taxpayers for this new theatre instead of working with the private sector.”

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