June 24, 2019
Andrew Lovett


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.

Australian Tax Insight|Queensland payroll tax

Disclaimer: We believe this information to be correct at the time of publication. It is general in nature, for guidance only and is not intended to be personal advice. It should not be relied upon without obtaining professional advice regarding your direct circumstances. No responsibility can be accepted by any publisher, author, editor, contributor or consultant for loss occasioned directly or indirectly to any person acting or refraining from acting wholly or partly upon or resulting from the material in this publication nor for any error in, broken link or omission from the publication.

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