Payroll tax update for Queensland
Recent changes are outlined below:
July 1, 2022
- Loss carry back for eligible companies extended to cover 2023 income year.
- Professional firm profits diverted to the professional's spouse or other associates to be reviewed under new Tax Office guidance.
- Corporate collective investment vehicle legislative regime introduced.
- Temporary full expensing of depreciating assets extended to include 2023 income year.
- Depreciable assets of a company joining a tax consolidation group have tax costs setting rules modified for assets depreciated under temporary full expensing rules.
December 9, 2021
- Reduced Pandemic leave disaster payment of $750 per week made available through to 30 June 2022.
August 5, 2021
- COVID-19 Disaster Payments are non-assessable non-exempt income in 2021 income year and later. Payments phasing out as vaccination rates increase.
July 1, 2021
- New Investment Engagement Service launched for businesses planning significant new investments in Australia.
- Tax Office small business independent review service made permanent for businesses with turnover < $10m, for income tax, GST, exercise, luxury car tax, wine equalisation tax and fuel tax credits. Requested before amended assessment issued.
- Small business income tax offset for individuals increased to provide a reduction of 16% for a tax payable up to $1,000.
- Self-managed superannuation funds can now have six members, increased from four members previously.
July 1, 2021
- Some COVID -19 state and territory business grants received by small and medium enterprises are non-assessable, non-exempt income for 2021 and 2022 income years.
- Certain state, territory and local government financial support for individuals and businesses suffering COVID-19 impacts made exempt where businesses have turnover less than $50 million and only in eligible programs.
March 31, 2021
- JobKeeper payments scheme ended.
October 5, 2020
- Boosting apprenticeship commencements subsidy (up to 50% of apprentice's wages) is assessable income.
June 4, 2020
- Homebuilder grant for new home or substantial renovation construction is not subject to income tax.
April 1, 2020
- COVID-19 cash flow boost payments are not subject to income tax
This is good news for small and particularly regional employers, and includes the following changes:
• Reduction in tax payable for small businesses by increasing the exemption threshold to $1.3m
• A 1% rate reduction for regional employers
• A temporary rebate of up to $20,000 for businesses taking on new employees
• Continuing the 50% payroll tax rebate on the wages of apprentices and trainees until 30 June 2021 and
• Increasing the payroll tax for employers with taxable wages above $6.5m.
The Government is delivering a package of targeted payroll tax measures to drive employment in Queensland businesses, particularly small, medium and growing businesses in regional Queensland.
These measures include:
• a higher payroll tax exemption threshold
• reduced payroll tax rates for regional employers over the forward estimates
• a two year extension to the 50% apprentice and trainee rebate and
• rebates to Queensland employers (capped at $20,000 annually per employer) will be available where employee numbers are increased.
The Government is committing $885 million over four years to these measures, which are being partially funded by an increase in the payroll tax rate applying to employers with annual taxable wages above $6.5million. Combined, the reforms to payroll tax are estimated to have a net revenue reduction of $341 million over the four years ending 2022-23.
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