- June 11, 2019
- Posted by: Sandeep Singh
- Category: Business & Finance, Business plans, Tax Deductions, Tax planning
The Queensland Treasurer, Ms Jackie Trad, handed down the State’s 2019/20 Budget on 11 June 2019. It includes the following tax-related measures.
Payroll tax changes
The following changes to payroll tax will be introduced:
- reducing tax payable for small businesses by increasing the exemption threshold to $1.3m
- introducing a 1% rate reduction for regional employers
- providing a temporary rebate of up to $20,000 to 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 rate for employers with taxable wages above $6.5m.
Land tax rate increase
The following changes to land tax will be introduced:
- changes to the definition of absentee for land tax to ensure that Australian citizens and permanent residents who hold permanent visas are not absentees
- increases to land tax rates for companies and trustees with aggregated landholdings over $5m
- an increase in the absentee land tax surcharge from 1.5% to 2%, and
- introduction of a foreign land tax surcharge of 2% applying to foreign companies and trustees of foreign trusts.
Petroleum royalty rate increase
The petroleum royalty rate will increase from 10% to 12.5% of wellhead value from 2019/20 onwards, with a transitional arrangement for one year for royalty payers who lodge and pay on an annual basis ending on 31 December 2019.