Last night, the Queensland Government handed down the 2019-20 state budget. The budget provides payroll tax relief for small business, and a reduction in payroll tax for regional employers. This is partly funded by an increase in the payroll tax rate for large business, and an increase in the land tax payable by companies and trusts.We have included details below of the key changes to payroll tax that are proposed to start from 1 July 2019, and for land tax on property held at 30 June 2019.
Employment changes
- The tax free threshold for payroll tax will increase to $1.3M (up from $1.1M). This should exempt a further 1,500 Queensland businesses from paying payroll tax
- Large businesses with a payroll over $6.5M will have a new payroll tax rate of 4.95% (up 0.2%)
- The payroll tax rate for Regional businesses will decrease by 1% to 3.75% or 3.95% ($6.5M and over)
- Employers that have net growth in full-time employees over a year can receive a payroll tax rebate of up to $20,000
- The back to work initiative has been extended. This program provides up to $20,000 in financial support for businesses that employ eligible job seekers in regional Queensland and some areas of South East Queensland. Further details on the program are available at https://backtowork.initiatives.qld.gov.au/for-employers/
Land Tax
- Land tax only applies to commercial and investment properties, and there are no changes to the rates of land tax paid by resident individuals.
- Australian citizens and permanent residents living overseas will be assessed as resident individuals, and will no longer have to pay the higher foreign rates or absentee surcharge
- The rate of land tax will increase by 0.25% for companies and trustees with landholdings of more than $5m. The new land tax rates will be:
| Total taxable value | Rate of tax | Change |
| less than $350,000 | 0 | Nil |
| $350,000 or more but less than $2,249,999 | $1,450 plus 1.7 cents for each $1 more than $350,000 | Nil |
| $2,250,000 or more but less than $5,000,000 | $33,750 plus 1.5 cents for each $1 more than $2,250,000 | Nil |
| $5,000,000 or more but less than $10,000,000 | $75,000 plus 2.25 cents for each $1 more than $5,000,000 | Increase of 0.25% |
| $10,000,000 or more | $187,500 plus 2.75 cents for each $1 more than $10,000,000 | Increase of 0.25% |
Talk to our friendly team today if you have queries about the above which may affect you. Contact us on +61 7 3378 7399 or via email at info@gillmckerrow.com.au
