What the New Qld State Budget Means for Your Business

by Dominique Schuh

Last week the Treasurer, Jackie Trad, delivered the 2019-20 Queensland State Budget. The Government provides for a $189 million surplus in 2019-20, with surpluses averaging $443 million over the four years to 2022-23. The State Government's outlook indicates Queensland's economy is on track to grow by 3.0% in 2019-20 but is likely to slow to 2.75% p.a. in each of the three years to 2022-23. In a budget strongly focused on infrastructure spending and support for regional areas, there are several new initiatives for business. These include:

Taxation

  1. The tax-free threshold for businesses having to pay payroll tax will increase from $1.1m to $1.3m (effective 1 July 2019). The payroll tax rate for businesses with payroll up to and including $6.5m will remain at 4.75%

  2. The payroll tax rate for large businesses with a payroll above $6.5m will have a new rate of 4.95%, up 0.2%. (effective 1 July 2019).

  3. The payroll tax rate for medium-size businesses in regional Queensland* (up to and including $6.5m) will decrease by 1% to 3.75% (effective 1 July 2019).

  4. The payroll tax rate for large businesses in regional Queensland* ($6.5m and over) will be reduced by 1% to 3.95% (effective 1 July 2019).

  5. A payroll tax rebate up to $20,000 for businesses who have a net growth in total full-time employees will be provided for the 2019-20 and 2020-21 financial years.

  6. A "Back to Work" initiative providing up to $20,000 in financial support for businesses that employ eligible jobseekers. Full details of this continued program at backtowork.initiatives.qld.gov.au

  7. The Apprentice and Trainee payroll tax rebate, which is paid at 50% of apprentice and trainee wages will be extended for two more years. Details of the rebate are available at business.qld.gov.au

  8. From 30 June 2019, land tax rates will increase from 2% to 2.25% for companies and trustees with landholdings of more than $5,000,000 but $10,000,000 or less.

  9. From 30 June 2019, land tax rates will increase from 2.5% to 2.75% for companies and trustees with landholdings of more than $10,000,000.From 2019-20, the land tax absentee surcharge rate will be harmonised with Victoria and New South Wales with a 0.5% increase, and application of the surcharge widened to include foreign corporations and trustees of foreign trusts.

    Skills

  1. $80 million in 2019–20 as part of a $420 million, six-year commitment to the Skilling Queenslanders for Work program.

  2. $105.8 million in 2019–20 for upgrades and improvements in Queensland's training infrastructure.

  3. Additional funding of $5.5 million over three years for the Micro-Credentialing Pilot to support industry-led skills development designed to address emerging workforce skills requirements.

  4. $4.6 million over five years for the Digital Engagement Strategy to improve the online accessibility of vocational education and consumer training information for young people.

  5. $300,000 over two years to establish a Higher Level Apprenticeship Pilot, to provide opportunities to partner with industry to develop new pathways to layer specialised skills and knowledge with the traditional apprenticeship model.

    Innovation

  6. $19 million over four years to support the Queensland Hydrogen Industry Strategy, with Gladstone being a key focus for hydrogen development.

  7. Additional funding of $105 million from 2018-19 in the Advance Queensland initiative

  8. $8.6 million over two years to establish FibreCo, to improve internet speed in regional Queensland.

    Infrastructure

  9. Government capital works program totaling $12.9 billion in 2019-20 and $49.5 billion over the next four years.

  10. The Budget provides $5.6 billion in transport infrastructure in 2019-20, including $1.480 billion to commence major construction work on Cross River Rail.

  11. $1.227 billion in 2019–20 for the construction of new schools and education facilities, as well as significant enhancements to existing buildings.

  12. $2.66 billion in energy and water infrastructure in 2019-20, including $153.6 million to upgrade dams and water supplies in South East Queensland

  13. $777.7 million in 2019–20 on investment in hospitals and health facilities.

    Regional

  14. $70 million additional funding for local government regional infrastructure projects

  15. $1.599 billion in capital grants in 2019–20, including $50 million as part of the Works for Queensland program for infrastructure in regional communities.

  16. $30 million over two years to contribute towards the construction and operation of a new common user terminal at the Port of Townsville

  17. $193.5 million for the Port of Townsville Limited, Channel Capacity Upgrade project.

    Further important changes for small businesses to note:

The Fair Work Commission has announced a 3.0% increase to minimum wages. The increase applies from the first full pay period starting on 1 July 2019. The new national minimum wage will be $740.80 per week or $19.49 per hour.

*for eligible employers with 85% of their employees outside of South East Queensland

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