Tax break for emergency services volunteers

Employers whose staff devote their time as emergency service volunteers will be given a new tax break by the State Government.

Treasurer Andrew Fraser today announced employers whose workers are deployed as volunteers – for outifts including the State Emergency Service and Rural Fire Service – will be exempt from paying pay-roll tax for the hours they spend away from their jobs in the field.

“I think we’ve all seen over the past week the tireless, selfless and exceptional effort more than 500 SES volunteers put in to help communities across the state deal with the rain and floodwaters,” Mr Fraser said.

“The hours these volunteers devote to helping others is time away from their families, it’s time away from their jobs.

“This exemption recognises the importance of those volunteers and the commitment of their employers for allowing their staff to take time away to clean up after floods or battle fires or help communities rebuild.

“It should also act as an incentive to employers to support and encourage their staff to take part and volunteer with the SES or their local fire brigade.

“In addition, the Queensland Government is providing an extra $24.5 million over five years for SES training and equipment.”

Mr Fraser said the exemption would take effect from July 1.

In the past financial year, SES volunteers have provided more than 65,000 hours of assistance, or the equivalent of more than 1700 working weeks.

Queensland has more than 6400 SES members and about 36,000 volunteers in the Rural Fire Service.

Mr Fraser said the exemption would apply for employers if staff are involved in:

§Bushfire fighting activities as a volunteer

§Emergency activities as a volunteer emergency worker

The exemptions do not apply to wages for recreation leave, annual leave, long service leave or sick leave.

Mr Fraser said the exemption was part of 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.

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

“The Queensland Government will retain Australia’s lowest pay-roll tax rate of 4.75 per cent and retain the $1,000,000 threshold,” Mr Fraser said.

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 0419 710 874