QLD State Budget Overview 2022/23
The Queensland 2022/23 Budget includes increased mental health support, payroll tax relief and mining companies face higher coal royalty rates. Queensland Treasurer, Cameron Dick, has handed down his 3rd budget as part of the government’s plan for economic recovery from the Covid-19 pandemic.
Revenue measures announced as part of the 2022–23 Queensland Budget, include:
- a mental health levy on payroll taxes above $10m
- extension of payroll tax deduction for small and medium Queensland businesses with the deduction being extended from the current ceiling of $6.5m in annual Australian taxable wages up to $10.4m
- 50% payroll tax rebate for apprentices and trainees will be extended for a further 12 months to 30 June 2023, and
- foreign acquisition duty relief for foreign buyers who are retirement visa holders when purchasing their principal place of residence on or after 1 January 2023.
Mental health levy
A mental health levy will be introduced which will apply to payroll tax liabilities arising on or after 1 January 2023. This will be applied to large employers, or groups of employers, with annual Australian taxable wages over $10m, including an additional levy applied to taxable wages over $100m, providing funding for mental health services.
The mental health levy will be applied as follows:
- a 0.25% levy on the annual Australian taxable wages of employers, or groups of employers above $10m
- an additional 0.5% levy on the annual Australian taxable wages of employers, or groups of employers, above $100m.
The levy will only apply to the portion of the wages above the respective taxable wage amounts (i.e. on a marginal basis).
Payroll tax relief for small to medium employers
Payroll tax relief will be provided for small and medium businesses, by increasing the payroll tax deductions available to employers, or groups of employers, with annual Australian taxable wages of between $1.3m and $10.4m. These changes are proposed to apply to payroll tax liabilities arising on or after 1 January 2023.
A 5% racing levy will be applied to the betting tax rate and bonus or free bets will be incorporated into the calculation of betting tax for liabilities arising on or after 1 December 2022.
Progressive coal royalty rates
3 additional progressive coal royalty rates will apply. The new tiers will apply on that part of the average price per tonne of the coal sold, disposed of or used on or after 1 July 2022 as follows:
- 20% for prices exceeding $175 AUD,
- 30% for prices exceeding $225 AUD, and
- 40% for prices exceeding $300 AUD.
How can SW help?
Please reach out to one of our experts below for assistance navigating the implications and opportunities this Budget presents for you, your business and your industry.