Queensland State Budget tax snapshot

Payroll tax

Proposed changes to payroll tax include the following:

• Mental health payroll tax levy: this levy is proposed to be introduced from 1 January 2023. This will apply to employers with annual Australian taxable wages over AUD 10 million, with an additional levy applied to taxable wages over AUD 100 million. The levy would be applied to the amount of wages exceeding the relevant threshold:
  • 0.25% on annual Australian taxable wages above $10 million; and
  • An additional 0.5% on annual Australian taxable wages above $100 million.
• Payroll tax relief: this relief will also assist small and medium businesses, by increasing the phase out rate for the payroll tax deduction from AUD 6.5 million to AUD 10.4 million, from 1 January 2023.
• Payroll tax rebate: a 50% payroll tax rebate for wages paid to apprentices and trainees will be further extended for 12 months through 30 June 2023.

Stamp duty

Proposed stamp duty changes include the following:

• Exemption from additional foreign acquirer duty (AFAD) for retirement visa holders (i.e., subclass 405 and 410 visa holders) purchasing their principal place of residence on or after 1 January 2023.
• Legislation for the small business corporate restructure exemption, which previously has been administered as an administrative concession only.  This will provide more certainty to businesses wishing to avail that concession.

Land Tax

As announced in the Mid-Year Economic and Fiscal Outlook, the Treasury has released draft legislation in relation to land tax to include the value of interstate landholdings when assessing the rate of land tax payable in Queensland, from the 2023-24 financial year. This will impose an obligation on Queensland landholders to provide details of their interstate landholdings to the Government and will likely result in an increased land tax liability in Queensland.

Coal royalty

An increase in coal royalty rates has been proposed on a sliding scale: Currently a royalty of 15% applies above an average price of $150 AUD per tonne.  This is proposed to be increased as follows:

• 20% for prices exceeding $175.
• 30% for prices exceeding $225.
• 40% for prices exceeding $300.

The increased royalty will only apply to the price in excess of the relevant threshold.

Gaming tax

The current 15% betting tax rate is being increased with a 5% racing levy. The taxes will also apply to bonus/free bets and is proposed to commence from 1 December 2022. 80% of the revenue will be provided back to Racing Queensland to assist the ongoing sustainability of the racing industry.

How we can help

If you require assistance or would like to know more about the proposed tax changes in the recent State budget, please contact your usual Mazars advisor or alternatively our Tax specialist, Jamie Towers, via the form below or on:

Author: Jamie Towers

Published: 23/06/2022

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