Queensland Budget

|by Jason Cordner|Taxation and Compliance

Queensland Treasurer Jackie Trad set down the 2019 / 2020 Queensland Budget yesterday and there were some changes to payroll tax and land tax to be aware of. For a more complete overview of the budget impacts for small business, see this link: https://budget.qld.gov.au/files/Budget%20Statements%20-%20SMALL%20BUSINESS.pdf

Payroll tax

Small business initiatives include (subject to review of regulations / legislation):

• Increase in the threshold for the application of payroll tax from $1.1 million in taxable wages to $1.3 million;

• A payroll tax rebate for new full time employees of up to $20,000 (as far as it applies to those new employees);

• Reducing payroll tax rate by 1% for regional employers (i.e. employers with 85% of their employees outside of South East Queensland)

• An extension of the rebate scheme for trainees and apprentices

On the flip side, large businesses (payroll above $6.5 million) will have an additional amount to pay.

Land tax

Some changes to land tax were announced however it is not expected to have widespread impact. These changes include:

• Increases in rates for companies or trustees with Queensland land holdings worth more than $5 million;

• Australian citizens and permanent residents will be assessed as residents even if living overseas;

• Absentee surcharge (applying to foreign residents that do not ordinarily reside in Queensland) increased from 1.5% to 2%

• Foreign surcharge of 2% will be applied to foreign companies and trustees with Queensland land holdings of more than $350,000

For full details on the budget, follow this link: https://budget.qld.gov.au/budget-papers/

If there are any budget measures that you think may impact on your circumstances, please contact us on (07) 5504 5700

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