Almost 450,000 small to medium businesses call Queensland home, and the 2019-20 Queensland Budget delivers a range of support offerings for Queensland businesses. Several initiatives aimed at helping small to medium businesses to increase job opportunities across the state. The initiatives will deal lower taxes for 13,200 small and medium businesses and offers new incentives to hire more Queenslanders.
The Government has introduced a new $1.3 million payroll tax free threshold for businesses which has increased from $1.1 million. The new threshold applies to all Queensland businesses, benefiting close to 1,500 Queensland businesses currently in between the old and new thresholds.
The payroll tax rate for businesses with up to and including $6.5 million payroll will stay at 4.75%, however, businesses over $6.5 million will have a new 4.95% (up 0.2%) rate.
Regional businesses will receive a 1% Payroll tax reduction across the board and applies to businesses with a registered business address in regional areas including Central Queensland, Cairns, Darling Downs – Maranoa, Queensland–Outback, Townsville, Mackay–Isaac–Whitsunday, and Wide Bay regions. This incentive creates a financial incentive to hire local, keeping jobs and money in local communities.
There will also be a Payroll Tax Rebate for all businesses hiring new employees. This rebate applies to employers who have growth in total full-time employees over a year. It will apply as a 100% rebate on payroll tax comparative to net growth in employees, up to a cap of $20000p/a.
The existing Back to Work initiative rebates will be continued, and the budget has included two years of the Apprentice and Trainee payroll tax rebate, which refunds 50% of trainee and apprentice wages.