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Queensland Budget 2019/20

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.

Source: Queensland Budget websiteBudget Papers No 2 and 4, 11 June 2019.