Question on Notice
Asked on 14 June 2019
MR J KELLY ASKED DEPUTY PREMIER, TREASURER AND MINISTER FOR ABORIGINAL AND TORRES STRAIT ISLANDER PARTNERSHIPS (HON J TRAD)—
Will the Treasurer advise how small businesses in Queensland will benefit from the changes to payroll tax announced in the budget?
The Palaszczuk Government is backing Queensland jobs by committing $885 million over four years in targeted payroll tax measures to support small and medium-sized businesses as they grow, drive employment and boost the Queensland economy.
Small and medium-sized enterprises make up more than 99 per cent of all Queensland businesses. A centrepiece of the Budget is assistance for small and medium-sized businesses, especially in regional areas.
From 1 July 2019, the Government will increase the payroll tax threshold from $1.1 million to $1.3 million. As a result, around 1,500 fewer employers will be liable for payroll tax. This will put $77 million back in the hands of Queensland’s small to medium businesses in 2019-20, and $335 million over the four-year budget period.
Queensland’s payroll tax rate continues to compare favourably to the other large states, with the new threshold being twice that of Victoria’s in 2019-20. This means a business in Queensland can employ twice as many people – and operate at twice the size of a business in Victoria – before paying a single dollar in payroll tax.
Additionally, regional employers will benefit from a 1 per cent discount off the payroll tax rate where they have an ABN registered business address and at least 85 per cent of their wages paid to employees located outside South-East Queensland. Accordingly, for the four financial years ending 30 June 2023, eligible employers with Australian annual taxable wages up to $6.5 million in regional areas will pay a reduced payroll tax rate of 3.75 per cent, demonstrating the Government’s continued determination to create jobs in regional communities.
The combined payroll tax threshold increase and the regional discount will mean an estimated 13,000 businesses are better off. This demonstrates the Palaszczuk Government’s continued determination to back jobs in regional communities.
The Palaszczuk Government’s Budget also benefits businesses who back Queensland jobs by offering a payroll tax rebate of up to $20,000 per year to employers that can demonstrate a net increase in full-time employees for the 2019-20 and 2020-21 financial years, payable in the 2020-21 and 2021-22 financial years.
The Budget also extends the Government’s successful 50 per cent payroll tax rebate for the wages of apprentices and trainees for another two years.