Earlier this afternoon, the Queensland Government released its 2022-23 Budget. For more details and information about this, head to the Qld Government’s Budget Website, here: https://budget.qld.gov.au/ (Sorry, no #jerotweetsthebudget for the Qld Budget)
Buried deep in Budget Paper 4 were some changes to Payroll Tax, which I wanted to highlight for you.
Payroll Tax – Mental Health Levy
The Government is introducing a mental health levy on large employers (or groups of employers) with annual Australian taxable wages over $10 million, to provide a sustainable funding source for mental health services.
Subject to the passage of legislative amendments, it is proposed that for payroll tax liabilities arising on or after 1 January 2023, a 0.25 per cent levy will apply to an employer’s (or group of employers) annual Australian taxable wages above $10 million, and an additional 0.5 per cent levy will apply to annual Australian taxable wages above $100 million of the employer (or group of employers).
Payroll Tax – Extending Deduction Phase Out
The Government will provide tax relief to small and medium businesses, through adjustments to the existing payroll tax deduction framework.
Subject to the passage of legislative amendments, it is proposed that for payroll tax liabilities arising on or after 1 January 2023, the payroll tax deduction will be extended from the current ceiling of $6.5 million in annual Australian taxable wages up to $10.4 million. This reflects an increase in the phase out rate of the deduction from $1 for every $4 to a rate of $1 for every $7 of taxable wages above the $1.3 million threshold, benefitting over 12,000 businesses.
Payroll Tax – Apprentice and Trainee Rebate
The Government is extending the 50 per cent payroll tax rebate on the exempt wages of apprentices and trainees until 30 June 2023. The extension of the rebate is part of the Government’s ongoing commitment to support Queensland businesses and build Queensland’s skills base, including for Queensland’s youth, across all regions of the state.
The change is subject to the passage of legislative amendments.
For more information about these proposed changes, please don’t hesitate to get in touch.
