On 15 June 2021, the Queensland Treasurer announced the state budget for 2021-22. Broadly, the budget builds on the Queensland Government’s Economic Recovery Plan with a transition over time from shorter-term support and stimulus, to measures aimed at enhancing productivity and competitiveness to drive ongoing private sector growth and jobs.
Surprisingly, the budget has not brought any significant reform to the state tax base, or changes to the tax rates. However, there was significant focus directed towards a number of grant and funding initiatives. The Government expects to be able to pay for these initiatives through increased land tax and payroll tax revenue in FY22 as a consequence of removal of COVID-19 stimulus packages and general improvement in the economy. The Government is also banking on a rebound in the economy to boost transfer duty revenue by AUD 905 million to around AUD 4.6 billion in 2021-22, being about a 25% increase on estimated actual transfer duty revenue for FY21.
Taxation changes in the budget were limited to a further extension to the 50% payroll tax apprentice and trainee rebate scheme, which will now see this scheme continue to operate until 30 June 2022. Briefly, the scheme provides an additional 50% rebate to taxable wages for wages paid to eligible apprentices and trainees, in addition to those wages being exempt from payroll tax.
We are currently engaging with the relevant departments and program owners to further understand key eligibility requirements for the above grants and programs.
Should you have any questions or would like to discuss any of the above announcements, please feel free to contact us.
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