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.