Pay-roll tax changes to cut red tape for Queensland business: Fraser

14 December 2007

Pay-roll tax changes to cut red tape for Queensland business: Fraser

A significant reform program to cut red tape for business by “harmonising” Queensland’s pay-roll tax system with those of New South Wales and Victoria was announced today.

Treasurer Andrew Fraser said the package would significantly reduce compliance costs and red tape for more than 7,000 Queensland businesses operating in more than one state.

“These reforms are about harmonising systems with NSW and Victoria – but we won’t be adopting their tune when it comes to rates.

“We are keeping Australia’s lowest pay-roll tax rate of 4.75 per cent and retaining the $1,000,000 threshold.

The Treasurer said the suite of reforms is designed to be Budget neutral.

“These harmonisation initiatives will reduce the costs of doing business in multiple states.

“Business will get the benefit of these reforms, not the State Budget,” Mr Fraser said.

Key aspects of Queensland’s harmonisation package include:

• Reducing pay-roll tax liability for business through increased motor vehicle and accommodation allowances by aligning with ATO rates.
• Aligning Queensland’s grouping provisions, contractor provisions, employment agent provisions and employee share schemes with Victoria and New South Wales
• Reducing pay-roll tax liability through a number of new exemptions including maternity and adoption leave, and wages paid to volunteer firefighters and emergency services workers

The reform package was foreshadowed at the last Budget, with today’s announcement setting out the detail.

Legislative changes to support the harmonisation package will be introduced to Parliament early next year with the measures to take effect from 1 July 2008.

Further detail about the Queensland pay-roll tax system changes is available on the OSR website at www.osr.qld.gov.au

Media contact: Chris Taylor/Chris Ward 322 44379