QLD BUDGET '10-11: Payroll tax rebates to help business


Queensland businesses are expected to benefit from payroll tax rebates and land value caps outlined in today’s Budget, yet will be hit in the pocket under the State’s new waste levy

June 8, 2010

Queensland business owners are expected to benefit from payroll tax rebates and land value caps outlined in today’s Budget, yet will be hit in the pocket under the State’s new waste levy.

The Bligh Government says it has been working to strike a balance between maintaining a competitive tax regime, promoting economic development and raising sufficient revenue.

Total revenue from taxation is expected to increase by 7.6 percent in 2010-11 on 2009-10 estimated actuals.

However, taxation per capita in Queensland will reportedly be $418 lower than the average of the other states.

PAYROLL TAX

The 2009-10 Budget introduced a payroll tax rebate of 25 percent of the eligible wages of apprentices and trainees until June 30, 2010.

Today’s Budget provides for the continuation of this measure until June 30, 2011 to assist businesses which employ apprentices and trainees as they continue their recovery.

The Government says this measure will save businesses about $8 million in 2010-11.

"Already, Queensland can boast the lowest payroll tax rate in the nation of 4.75 percent, and the highest threshold of the mainland states of $1 million," Treasurer Andrew Fraser says.

"We have kept our commitment to skilling up tomorrow’s workforce by extending our 125 percent payroll tax rebate for apprentices and trainees.

"Now is not the time to take away incentives for employers to train the next generation of Queenslanders."

LAND TAX

A 50 percent cap on the annual increase in land values used for the purpose of calculating land tax liabilities commenced from July, 2007 for a period of three years.

The 2010-11 Budget provides for the continuation of the 50 percent land value cap, reportedly saving land tax payers $9 million.

To assist in alleviating the cash flow issues associated with annual land tax liabilities, an instalment payment option will also be introduced in 2010-11.

From July 1, land tax payers will be able to either pay their full amount of tax 90 days after they are given their assessment, or in three equal instalments at 45, 90 and then 150 days after assessment.

The Government will also be providing a land tax exemption for ‘Level 3’ supported accommodation facilities.

WASTE MANAGEMENT LEVY

The Government will introduce an industry waste management levy in July next year to encourage recycling and reduce the amount of industry waste being sent to landfills.

A $35 per tonne levy will apply to commercial and industrial waste; construction and demolition waste; regulated waste; and contaminated and acid sulphate soils.

The levy revenue is estimated at $379 million over four years.


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