Queensland now even more competitive on tax and forecast to grow strongly

Treasurer Curtis Pitt says Queensland’s competitive tax regime would be one of many features to be stressed to interstate businesses as part of the government’s plans to attract them to move here. 

Mr Pitt said the recent State Budget contained initiatives to improve services, generate jobs, build infrastructure, support home ownership, encourage employers to hire, and help businesses to grow and create jobs. 

“We have delivered the biggest forecast surplus in a decade without the need for asset sales and we’ve also improved Queensland’s competitive tax structure,” Mr Pitt said.

“As we promised, we have maintained the revenue policy settings as they stood prior to the election — the ones the Opposition now disowns — and committed not to introduce new taxes, fees or charges that impact Queenslanders. 

“Even in the face of challenging global economic conditions we have still managed to widen the gap on tax competitiveness in favour of Queenslanders. 

“In the 2016-17 Budget state taxes were reported to be $2,697 per capita or $766 lower than the $3,463 per capita for the average of all states and territories. 

“Since then all state and territory budgets have been delivered and the figure has improved and is now $808 lower per capita for state taxes than the updated average for all jurisdictions of $3,505.” 

“The $808 tax advantage compares well to much smaller gaps in State Budgets handed down by former Treasurer Tim Nicholls — $495 in 2012-13, $475 in 2013-14, and $536 in 2014-15. 

“Not only did Mr Nicholls make us less competitive on state taxes, over his first two Budgets he lifted the tax burden for the average Queensland household by more than $1,000. 

“In the first two Budgets of the Palaszczuk Government the comparable rise is slightly more than $380.

“Over the term of the Newman/Nicholls government he raised state taxes by more than $1,300 for the average household.” 

Mr Pitt said the competitive advantages that Labor had delivered in two State Budgets would be promoted as part of the Palaszczuk Government’s efforts to encourage interstate businesses to relocate to Queensland. 

“We said we would be taking an aggressive approach to business attraction and we mean it. 

“Details will be announced at a later date, but right now I can say the government will be actively promoting Queensland to interstate businesses as a place where they should relocate. 

“Those efforts will include me and other Ministers heading interstate to spread the positive message we have to those who might be keen to head north and take advantage of our Market-Led Proposals initiative, the Business Development Fund, the Industry Attraction Fund announced in the Budget, or other incentives. 

“Those incentives include our lower tax regime, lower cost of living, more affordable property prices, highly skilled work force, and our overall attractive standard of living, services, and infrastructure — not to mention our great climate, unique natural attractions, golden beaches, and the Great Barrier Reef. 

“All of those attractive elements exist in all of our regions which is where we also want to see new businesses settle or develop, not just the south-east corner.

“Our proactive approach is in stark contrast to the lazy attitude advocated by Tim Nicholls who has described our Industry Attraction Fund as an ‘industry welfare’, and ‘corporate welfare’, and ‘bribery’. He just doesn’t get it. 

“It is very clear he would take a do-nothing approach to growing our economy and creating jobs. His single policy remains asset sales.” 

Mr Pitt said the Industry Attraction Fund was also accessible to existing Queensland-based business looking to expand or shift operations, for example to regional areas. 

He said growth forecasts were now also available from the budget papers of all states and territories which reinforced Queensland’s strong, nation-leading growth. 

“Just this week we saw evidence that our economic plan is working with the latest Deloitte Access Economics Business Outlook forecasting Queensland to be the leading growth state in the nation in 2016-17 and to be second only to the Northern Territory and ahead of Victoria and NSW in 2017-18. 

“Deloitte says Queensland should grow faster than other states and territories from 2018-19 to 2020-21. 

“Their forecast trend is broadly in line with comparative forecasts drawn from the budget papers of all states and territories. 

“In other words, our economy is growing the fastest of all states and territories and will continue to grow under our economic plan. 

“A significant reason for that is the fact we have brought back the essential element of confidence in our economy and our future — something Tim Nicholls as Treasurer and the rest of the LNP went out of their way to shatter. 

“That is shown in surveys and analysis such as the National Australian Bank index which has consistently put us in the top performers in terms of business confidence for 11 out of the past 12 months,” Mr Pitt said.

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