14 June State Budget will keep Queensland competitive on tax

Published Tuesday, 07 June, 2016 at 10:03 AM

Treasurer, Minister for Aboriginal and Torres Strait Islander Partnerships and Minister for Sport
The Honourable Curtis Pitt

Treasurer Curtis Pitt says next week’s State Budget will see Queensland become even more competitive when it comes to state taxes. 

“The State Budget on 14 June will generate economic growth, attract investment, build infrastructure, and create jobs now and for the future,” Mr Pitt said. 

“We will maintain Queensland’s competitive state tax framework which can be an important consideration for businesses or individuals wanting to move here and help create jobs. 

“Despite the challenges we face as we transition to a post-mining boom economy, we will maintain our competitive edge over other states while investing in services and job-creating infrastructure across our state. 

“In the 2016-17 Budget state taxes per person in Queensland are forecast to be $2,697 — that’s a full $766 per person less than the $3,463 average for other states and territories. 

“This is good news for Queensland taxpayers and for Queensland business and helps to promote our state as a great place to live and work and do business. 

“By comparison the budgets or mid-year updates of other jurisdictions show per capita taxes in the ACT are $4,025; NSW $3,708; Victoria $3,542; and WA $3,357.” 

Mr Pitt said Queensland’s attractive tax status had improved since 2015-16 when its estimated per capita average of $2,666 was $677 less than the $3,343 average of other states and territories. 

“It is notable that under the LNP with Tim Nicholls as Treasurer we were less competitive on state tax. At the December 2014 mid-year review Queensland’s taxes were only $539 below the average of the other states and territories,” he said. 

Mr Pitt saidthe Palaszczuk Government will ensure Queensland’s tax competitiveness would remain in the 2016-17 State Budget despite forecast write-downs in revenue from state taxes and royalties. 

“Potential write-downs have been well canvassed and were factored in at the time of the Mid-Year Fiscal and Economic Review in December,” he said. 

“Since then Queensland has been faced with soft domestic and global economic conditions and a further $3 billion in expected write-downs have occurred including a further $2.7 billion drop in royalties and state taxes expected to be a further $350 million lower than at MYFER. 

“The write-downs mean that since last year’s Budget expected royalties and state taxation revenue over the four years to 2018-19 is estimated to be down $4.7 billion. 

“They are largely the result of low world prices for our export resources and the tailing off of major upfront investment in the mining sector. 

“By comparison write-downs in the State Budget totalled $10.5 billion in the four years 2008-09 to 2011-12 as a result of the global financial crisis — $7.8 billion tax and $2.7 billion royalties.” 

Mr Pitt said write-downs were not unique to Queensland. 

“Excluding GST, Federal Budget tax receipts are forecast to be $4.6 billion lower in 2016 17 and $14.2 billion lower over the four years to 2018 19,” he said. 

“In the WA Budget, taxes were revised down by $2.2 billion over four years relative to their mid-year review, but royalty revenue was revised up by $851 million over four years due to a rebound in the ore price since mid-year.” 

Mr Pitt said the WA Budget was roughly half the size of Queensland’s approximate $50 billion State Budget and the Federal Budget was about seven times larger than Queensland’s. 

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