Queensland Treasurer unveils payroll tax changes in budget
The Queensland government plans to adjust the eligibility criteria for the regional payroll tax discount and extend the 50 per cent payroll tax rebate for apprentices.
The Miles Labor government has handed down its first budget for Queensland containing a raft of cost-of-living relief measures and various tax measures.
The government plans to adjust the eligibility criteria for the regional payroll tax discount to exclude large businesses with more than $350 million in taxable wages on an annual basis.
The Budget papers noted that these businesses have “substantially greater financial capacity to contribute to state revenues compared to smaller, regional employers”.
“From 2024-25, businesses with Queensland taxable wages of more than $350 million on an annual basis will not be eligible for the discount,” the papers said.
The measure, which is subject to the passage of legislative amendments, is estimated to raise approximately $20 million in additional taxation revenue over four years.
The government also announced a measure to extend the 50 per cent payroll tax rebate on the exempt wages of apprentices and trainees until 30 June 2025.
“The extension of the rebate provides $54.9 million in additional support for businesses employing trainees and apprentices, and forms part of the government's ongoing commitment to building Queensland's skills base, including for Queensland's youth, across all regions of the state,” the government said.
Land tax measures and relief for first homes buyers
The government has also delivered additional relief for first home buyers by extending eligibility for the first home concession to properties valued up to $800,000.
If passed, no duty will be payable on homes valued up to $700,000 and a partial concession will apply for homes between $700,000 and $800,000.
“Eligibility for the first home vacant land concession will be extended to $500,000, with no duty payable on land valued up to $350,000 and a partial concession for land valued between $350,000 and $500,000,” the papers said.
“It is estimated that these changes will provide $360 million in tax relief for first home buyers over the 4 years to 2027-28, and benefit around 10,000 first home buyers per annum.”
However, the government will also increase the surcharge rate of land tax applied in addition to land tax rates for foreign companies and trustees of foreign trusts, and absentees, from 2 per cent to 3 per cent.
“Ex gratia relief will continue to be offered for Australian-based foreign entities whose commercial activities make a significant contribution to the Queensland economy and community,” the papers said.
“It is estimated this measure will result in additional taxation revenue of approximately $330 million over the 4 years ending 2027-28.”
CPA Australia business investment and international lead, Gavan Ord said CPA Australia welcomes the move to increase relief for first home buyers.
“This will make a difference to first home buyers in Queensland,” said Mr Ord.
"As property prices have skyrocketed, the increase in the stamp duty threshold for first home buyers has been long-overdue.
“CPA Australia wants governments to move away from inefficient taxes such as stamp duty. There is widespread agreement among tax experts and professionals that stamp duty should be replaced with a smaller, annual fee for all home buyers.”
Premier Steven Miles said the budget delivered major funding for households, health and infrastructure to support the state of Queensland.
“I am doing what matters for Queenslanders, which is why today’s budget has delivered record cost-of-living relief for our communities,” said Miles.
“Making sure everyone has a safe place to call home, can keep the lights and put food on the table is a key priority for me.”
Treasurer Cameron Dick said while the government has forecast a deficit of $2.6 million for 2024-25, it will ensure that more Queensland families keep their budgets in balance.
“If a deficit is the price to be paid to provide nation-leading cost-of-living relief, then that is a price we are willing to pay,” he said.
