The Queensland State Budget was handed down on 11 June 2019.
We have outlined below some of the changes that will affect Queensland businesses.
Payroll tax
The following changes are proposed for payroll tax:
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The payroll tax tax-free threshold will increase from $1.1 million to $1.3 million. This means that approximately 1,500 businesses will no longer have to pay payroll tax.
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The payroll tax rate for businesses with payroll up to $6.5 million will remain at 4.75%.
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The payroll tax rate for businesses with payroll above $6.5 million will increase to 4.95% (up 0.2%).
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There is a payroll tax discount of 1% for regional businesses (that is, businesses with a registered business address in a regional area and where 85% of taxable wages are paid to employees who reside in regional Queensland).
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A rebate of payroll tax of up to $20,000 is also available to employers who have a net growth in full-time employees over a year.
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The budget also provided two more years of the Apprentice and Trainee payroll tax rebate (which is paid at 50% of the apprentice and trainee wages).
Land tax
From 30 June 2019, land tax rates will increase as follows:
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for companies and trusts with landholdings of more than $5 million but less than $10 million – the rate increases to 2.25%
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for companies and trusts with landholdings of more than $10 million – the rate increases to 2.75%.
Australian citizens and permanent residents living overseas will now be assessed as resident individuals from 30 June 2019 (so they will benefit from the higher tax-free threshold and lower rates of land tax that apply to resident individuals).
The absentee surcharge will increase to 2%. This applies to foreign individuals who own land and do not ordinarily reside in Australia (except for Australian citizens and permanent residents).
From 30 June 2019, a new land tax foreign surcharge of 2% will apply to foreign companies and trustees of foreign trusts that own land. The surcharge will apply to the portion of the taxable value of the land that is over $350,000.
If you would like to discuss the impact of the Queensland state budget on your business, please call us on (07) 56656469.
DISCLAIMER: The information in this article is general in nature and is not a substitute for professional advice. Accordingly, neither TJN Accountants nor any member or employee of TJN Accountants accepts any responsibility for any loss, however caused, as a result of reliance on this general information. We recommend that our formal advice be sought before acting in any of the areas. The article is issued as a helpful guide to clients and for their private information. Therefore it should be regarded as confidential and not be made available to any person without our consent,
Jeanette has over 20 years experience as an accountant in public practice. She is a Chartered Accountant, registered tax agent and accredited SMSF Association advisor. When she is not helping business owners grow their empires, you will likely find her out running on the trails or at the gym. Book in to see Jeanette today.
