Queensland announces payroll tax exemption on JobKeeper payments

In a measure designed to support Queensland jobs and businesses to navigate the economic fallout of the COVID-19 pandemic, Premier Annastacia Palaszczuk this morning announced that businesses employing Queenslanders will not pay payroll tax on the Federal Government’s JobKeeper payments.

“We know businesses and workers have been doing it tough through the necessary restrictions we have put in place to come down hard on the spread of coronavirus,” the Premier said, adding that while the state hopes to soon ease some restrictions, “life will be tough for many businesses for months to come, so we will ensure they don’t have to foot the bill for payroll tax on the Federal Government’s JobKeeper payments which are now starting to flow.”

Deputy Premier and Treasurer Jackie Trad said administrative arrangements had been fast-tracked to ensure payroll tax assessments do not include JobKeeper payments, providing additional effective relief of $360 million over six months to businesses employing Queenslanders.

“The Federal Government has decided to make JobKeeper a taxable allowance – that is, it will count as income when recipients come to file their tax return,” Ms Trad said.

“Since COVID-19 started affecting Queensland businesses and jobs in January, we have been talking regularly to business.

“Measures to relieve payroll tax have been at the heart of the Queensland Government’s response, including tax holidays, tax deferrals, and payroll tax refunds that have put more than $345 million back into the accounts of Queensland businesses,” she continued. 

As well as the newly announced payroll tax measures, the QLD Government is supporting with $500 million in jobs support loans, $400 million in land tax relief for property owners to pass on to tenants, rebates on utility bills for households and small-to-medium businesses, and a range of other measures.

Ms Trad said Queensland Treasury’s Office of State Revenue would be adjusting its payroll tax information to ensure there is a smooth transition when the next payroll tax returns are due to be lodged next week.

Further details of the Queensland Government’s multi-billion dollar COVID-19 jobs and business support package is available at business.qld.gov.au