Payroll tax reform centrepiece in Budget dedicated to regional Queensland

Townsville will reap the rewards of an “unashamedly” regional Queensland focused State Budget through its centrepiece tax reform, set to benefit 500 local small businesses.

TOWNSVILLE will reap the rewards of an “unashamedly” region-focused State Budget through its centrepiece tax reform.

Treasurer Jackie Trad, in handing down her second budget yesterday, said it was a Budget “for regional Queensland”.

“Queensland is the most decentralised state in the federation,” she said.

“A state that relies — more than any other — on the strength of its regional cities and towns.”

Townsville Mayor Jenny Hill dubbed it the “steak and potatoes” budget; a “safety budget” that focused on schools, roads, and existing projects like the North Queensland Stadium.

But the dessert is the centrepiece payroll tax reform targeted at the regions, according to Townsville civic leaders.

“There appears to be a commitment to try and move industry out of south east Queensland,” Cr Hill said.

Regional businesses with a payroll of less than $6.5 million and an 85 per cent local workforce will pay 1 per cent less tax. Those with a payroll higher than $6.5 million will be taxed at a rate of 3.95 per cent.

Businesses with a payroll of less than $1.3 million will pay not tax, after the threshold was increased by $200,000.

It is estimated 500 Townsville small businesses will benefit from the increased threshold.

Carl Valentine, Partner PWC.

PVW Partners managing partner Carl Valentine said the reform didn’t go as far as the accounting firm would like but was a “step in the right direction”.

“For far too long Payroll Tax has been hindering the growth of businesses across Queensland, sending a clear message to employers that if they hire additional employees, they will quite literally pay the price,” he said.

Townsville Enterprise chief executive Patricia O’Callaghan said the tax package would support local businesses and allow them to “keep money in their pockets” and encourage investment into operations and workforce.

Townsville MP Scott Stewart said it would give small businesses knocked around during the floods a bit of breathing space.

“It now gives them the opportunity to expand and maybe employ another person,” he said.

Meanwhile, the Budget also revealed the State Government would hand $9.4 million to the Queensland Police in 2019-20 to increase bail checks of young people at six location across the state, including Townsville.

Major General Stuart Smith.

A total of $18.5 million will be provided to expand the Townsville Community Youth Response and address the recommendations of the youth crime report by Retd Major General Stuart Smith.

The North Queensland Stadium, which is officially $43.5 million over budget, will be provided with $14 million across four years to pay for operating costs.

A total of $930.7 million will be spent in infrastructure in Townsville, including $30 million for a new terminal at Townsville Port.

Funding of $80 million across four years has been allocated to discounting how much it costs resource companies to use the Mount Isa to Townsville rail line.

On the Bruce Highway, between Horseshoe Lagoon and Palm Creek, $108 million will be spent this financial year to construct bridges, approaches and upgrade intersections.

There are more than $1.7 billion in new or increased taxes in the Budget, including royalty increases for gas companies.

Debt is on track to hit $90.7 billion by 2022/23.

Originally published as Payroll tax reform centrepiece in Budget dedicated to regional Queensland