Business gets a break to fight economic downturn

The State Government has today committed to a major package of cost-saving measures for business including tax breaks and a reduction in administration costs in a bid to shore up jobs during the global economic downturn.

Premier Anna Bligh said businesses throughout Queensland stood to save hundreds of thousands of dollars due to the three-pronged initiative.

“As stand-alone measures, these initiatives will save business money - combined, they represent significant reductions in both costs and red tape so that businesses can keep their heads above water,” Ms Bligh said.

“These are the first instalments for business in our on-going battle against unemployment.”

Ms Bligh said the cost-cutting package includes:

• A freeze on land tax valuations in 17 key Queensland local government areas
• A reduction in compliance reporting time-frames for the successful Water Efficiency Management Plan (WEMP)
• An amnesty on payroll tax penalty payments

Ms Bligh said it was imperative the government act to give business a helping hand to stave off the effects of the economic crisis and sustain and create jobs.

“That’s the government’s number one priority – to save jobs – during this time of unprecedented global economic hardship,” Ms Bligh said.

“We are working closely with the Job Squad – which will meet for the second time today - to take on board ideas they are developing.

“These initiatives have come from the early work of our new Job Squad – the ideas of this business forum are already paying dividends.

“The one clear and consistent message from the Job Squad is that the immediate thing government can do is give business a break from regulatory burdens where possible and these three initiatives achieve just that.”

Ms Bligh said a freeze on land valuations should convince councils to limit unreasonable rate increases.

She said the government had last year undertaken an annual round of land valuations on the 17 areas.

“But this commenced before the true impact of the global financial crisis began to hit our shores, near the peak of the property market and so these valuations do not reflect the current economic reality.

“As a result, these valuations will not be issued for residential and industrial land because now is not the time for tax increases just as it is not the time for big rates increases.”

The average increase over these 17 local government areas was 69 per cent but in some areas, increases were much higher. For example one property in Redlands saw an increase of 700 per cent and the average increase in Mt Isa was 247 per cent.

The freeze will effect the local government areas of Balonne, Banana, Bundaberg, Cassowary Coast, Charters Towers, Croydon, Dalby, Etheridge, Lockyer Valley, Moreton Bay, Mount Isa, Rockhampton, Redland City, South Burnett, Southern Downs, Townsville and Whitsunday.

Treasurer Andrew Fraser said a relaxation of the Water Efficiency Management Plan – otherwise known as WEMPs – would cut down on administrative costs for business

“WEMPs were introduced in response to the drought as a measure to ensure larger water users were reviewing their water usage on an ongoing basis,” Mr Fraser said.

“The vast majority of businesses have drastically reduced their water consumption and although the drought’s not over, they’ve proven they have processes in place to save water.

“Instead of reporting quarterly on their water savings, they will now report annually, cutting down on expenses and freeing employees of both business and council up to focus on other jobs.”

Mr Fraser also announced new terms for a penalty amnesty by the Office of State Revenue for employers who haven’t paid the right amount of pay-roll tax on payments to contractors.

The amnesty will now apply until April 30 for employers who have not included payments to contractors in their pay-roll tax returns.

“Under the amnesty employers will not be liable for penalty tax and most importantly the amnesty will now only apply for the last year, not for last three years as was originally proposed.

“This will allow businesses to move forward confidently without spending time and money reaching back years to sort through their tax obligations.”

12 February 2009

Media: 3224 4500 (Premier’s office)

3224 6900 (Treasurer’s office)