Australia: Tax measures in 2022-2023 budget (Queensland)

The 2022-2023 budget for Queensland includes payroll tax measures and proposals concerning the coal royalty rate. The budget does not contain any significant new revenue measures in relation to transfer duty and land tax.

Under the proposal, a mental health levy would be applied to payroll tax liabilities from 1 January 2023 as: 

• A 0.25% levy on the annual Australian taxable wages of employers (or groups of employers) above $10 million*
• An additional 0.5% levy on the annual Australian taxable wages of employers (or groups of employers) above $100 million

A new payroll tax relief measure would target small and medium-sized businesses. Under this measure, the Queensland government would adjust the existing payroll tax deduction framework from 1 January 2023.

The current payroll tax deduction would be extended from the current ceiling of $6.5 million in annual Australian taxable wages up to $10.4 million, reflecting an increase in the phase out rate of the deduction from $1 for every $4 to a rate of $1 for every $7 of taxable wages above the $1.3 million threshold.

The 50% payroll tax rebate for wages paid to apprentices and trainees would be extended for 12 months until 30 June 2023. The rebate would be in addition to apprentice and trainee wages generally being exempt from payroll tax and operates to reduce the overall payroll tax liability of the employer.

Additional tiers of coal royalty rate would also apply from 1 July 2022. The highest marginal royalty rate would increase to 40% (from 15%) on the excess of the average price per tonne over $300.

Read a June 2022 report [PDF 644 KB] prepared by the KPMG member firm in Australia

_{*$=Australian dollar}