Queensland's new LNP Government has given former federal treasurer Peter Costello the job of going through the state's finances after Labor's crushing election defeat.

New Queensland Treasurer Tim Nicholls confirmed that Mr Costello would head the state's commission of audit at a news conference this morning.

"We indicated that one of the critical issues in regaining the state's fiscal strength was to have a commission of audit. We highlighted that commitment in our 100-day plan," Mr Nicholls said.

"In fact, we said we would get it done within the first seven days.

"The reason we need to do that is at the end of the financial year Queensland will be $62 billion in debt.

"We need to be able to put together a chart and a plan to restore Queensland's fiscal strength and its fiscal ability, to regain its AAA credit rating. That's why we have put together this commission of audit.

"I believe there is no better person to lead the audit than Peter Costello.

"If there is someone who knows the importance of having a well-maintained, well-managed government sector it is Peter Costello, and I am very, very proud he has accepted my invitation to come on board."

The former treasurer will be joined by Dr Doug McTaggart, who currently heads the Queensland Investment Corporation, an organisation with over $60 billion in assets.

Mr Nicholls says the commission of audit will be funded out of the state treasury's existing budget.

Public service

Mr Costello says he will spend about two days a week auditing Queensland's finances and provide economic advice for future decades.

"Preparing outside of the short electoral cycle will be good for the state," he said.

Mr Nicholls says the Government is yet to finalise how much the commissioners will be paid.

"They have all agreed to take this role on without any of that discussion. This is a matter of public service," he said.

An interim report into the current financial position is due by mid-June with the full report to be delivered in February.

Mr Costello currently serves on the Board of Guardians of the Federal Government's Future Fund.

Earlier this month the former treasurer was the centre of controversy when he was apparently overlooked as chairman of the fund in favour of David Gonski.

State Opposition Leader Annastacia Palaszczuk has criticised the latest appointment, saying the LNP should not have given Mr Costello the role.

Ms Palaszczuk says it is another example of Mr Newman handing jobs to Liberal "mates".

"I just don't believe that Peter Costello is the right person to be appointed to a Commission of Audit," she said.

"If a commission is to be undertaken in this state, and Premier Newman has said this, then it must be transparent. It must be transparent open and accountable. You cannot make a political appointment.

"Who else is going to be appointed next? Are we going to see [LNP president] Bruce McIver, are we going to see Clive Palmer?"