Payroll tax relief announced as part of the state budget means Queensland small and medium sized businesses will be incentivised to employ more people, supporting them to scale and grow, while starting a conversation for potential future reform.
Chamber of Commerce and Industry Queensland (CCIQ) chief executive officer Heidi Cooper said the changes recognised the payroll tax constraint on business and came after CCIQ called for payroll tax reform ahead of the state budget.
“We welcome today’s announcement as it means small-and-medium sized businesses have been afforded some incentive to grow their workforce without facing higher tax bills, supporting them to better meet consumer or market demand, diversify, scale and grow,” Ms Cooper said.
“CCIQ has long championed reform to payroll tax as we know the existing tax burden and structure was a significant constraint on business growth.
“CCIQ’s state budget submission called for payroll tax reform to address the impact on business growth, to ensure Queensland business is ahead of the game.
“The changes we have seen in today’s budget are a positive step forward in ensuring Queensland businesses can grow, particularly at a time when business costs are increasing.”
CCIQ data shows close to seven in 10 businesses reported an increase in business input costs during the last quarter, which are trending towards record highs. Businesses don’t expect relief in the June quarter.
At the same time, labour costs increased to record highs in the last quarter with little relief expected on the horizon.
“The payroll tax relief recognises the current day pressures on businesses and helps to alleviate some of the immediate business input costs,” Ms Cooper said.
“There is still work to do, including using national cabinet as a forum for advocating for broader holistic payroll tax reform at a federal level.”
