Pay-roll tax reform introduced into Parliament: Fraser

Treasurer Andrew Fraser has today introduced into State Parliament significant reforms to Queensland’s pay-roll tax system bringing it into “harmony” with those of New South Wales and Victoria.

Mr Fraser said the reforms would significantly reduce compliance costs and red tape for more than 7,000 Queensland businesses operating in more than one state, making the system consistent between the eastern states.

He said Queensland would retain Australia’s lowest pay-roll tax rate of 4.75 per cent and its $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 stands to be the real beneficiary,” 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 legislative changes introduced today will 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