Qld regional payroll tax discount to be extended, Treasurer confirms

A lucrative payroll tax discount in the regions meant to expire in June, will be extended, Treasurer Cameron Dick has confirmed.

A LUCRATIVE payroll tax discount in the regions meant to expire in June will be “enshrined for the long-term” Treasurer Cameron Dick has confirmed, in a massive coup for business confidence.

In 2019, then-Treasurer Jackie Trad announced a payroll tax discount for businesses outside the southeast corner, in a move designed to attract companies to the regions by slashing tens of thousands of dollars off their tax bill.

The measure, which benefited thousands of businesses, was set to expire on June 2023.

Townsville-based accountancy firm PVW Partners, which had barracked for a regional payroll tax discount in 2019, signalled the measure had been beneficial to businesses and dropping it amid tough economic times would be a major blow.

Treasurer and Minister for Trade and Investment Cameron Dick. Picture: Lyndon Mechielsenl

Treasurer Cameron Dick confirmed the government would be keeping the discount.

Queries around the future of the regional payroll tax measure had been raised with Opposition Treasury spokesman David Janetzki when he met with businesses in Townsville recently.

PVW Partners managing partner Carl Valentine said the payroll tax concession had allowed regional businesses to build a “buffer”.

“All the pressure on costs and price increases, doing business is getting more and more expensive all the time, so that relief from higher rates of payroll tax with hindsight has really helped regional business,” he said.

Treasurer Cameron Dick, asked what he planned to do with the discount, confirmed it would be continued.

“Legislative changes are being prepared to enshrine it for the long-term,” he said.

Mr Dick also pointed to the forward estimates of each state budget since 2019 which “do not include any revenue that would flow from the removal of the regional payroll tax discount” — signalling the government had always planned to keep the measure going.

Regional businesses with a payroll of less than $6.5 million and an 85 per cent local workforce will pay the tax at a rate of 3.75 per cent instead of 4.75 per cent.

Those with a payroll higher than $6.5 million will be taxed at a rate of 3.95 per cent.