CHRONICLE COLUMN –6 AUGUST 2024 – PAYROLL TAX RATE
I think my view is clear, around the discount on the payroll tax rate.
Our identity lies as Australia’s biggest inland city (other than the Capital), built on its rich traditions of country. We are the Capital of the great Darling Downs and Southwest and we are not southeast Queensland.
From a business perspective, this is a critical matter that needs clarification and leadership from all our elected officials. Why? Because I believe, the confusion over being regional or part of southeast Queensland, makes us an easy political pawn, for government regulatory drafters and policy makers, and here are 33 million reasons why.
Payroll Tax Rate discounts for “Regional” Employers
In Queensland, there is a discount from the regular payroll tax rate for “regional” employers. There are significant, onerous requirements which employers must satisfy to be eligible for the discount. These include the employer must:
- have a “principal place of employment” in “regional Queensland”; and
- pay at least 85% of taxable wages to “regional employees”.
Under the current State Government arrangements “Regional Queensland” is the following areas Cairns, Central Queensland, Darling Downs Maranoa, Mackay – Isaac – Whitsunday, Queensland – Outback, Townsville, and Wide Bay.
Notably, Toowoomba is not included in any of these areas.
In my view, this is clearly an inequitable application of the law, filled with unfairness, reducing our local business competitiveness. Why? Because Toowoomba based employers face the same challenges that other “regional” employers encounter. Surely, if more than 50% of our region or more than 50% of Queenslanders think we are regional, than the payroll discount should apply to Toowoomba. Don’t you agree?
Did you know, that because of this inequitable application of the law, Toowoomba small business owners are an estimated 33 million dollars worse off? Our research indicates that our business community is an estimated 33 million dollars worse off because we are not considered regional. Money which could be reinvested directly back into local businesses and the community.
We need all members running for a state seat at the upcoming State Government election to commit to implement equity and fairness to our region, restoring our competitiveness.
What to see change?
Write or email the Toowoomba Chamber (admin@toowoombachamber.com.au) and cc, your local, state and Australian government elected official.
