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Queensland businesses will continue to receive payroll tax relief for the rest of the year as the state government delivers its budget.
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Queensland hands down state budget
01 December 2020
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While there were no new payroll tax relief measures announced in Tuesday’s state budget, the Queensland government has confirmed that ongoing deferrals for eligible businesses will continue for the rest of the calendar year, with deferred liabilities to be paid throughout 2021.
Queensland Treasurer Cameron Dick also revealed that the $500 million Backing Queensland Business Investment Fund will assist relatively mature businesses that have a proven product and defined market opportunity but require significant capital to aggressively build scale or grow market share.
Of the $500 million fund, $100 million will be allocated to small and medium-sized businesses that have significant growth potential and will create Queensland-based jobs.
CPA Australia general manager of external affairs Dr Jane Rennie said that while the budget demonstrated long-term thinking by focusing on building health, education and emergency services infrastructure, it failed to consider tax reform in the manner that NSW was pursuing through a move away from stamp duty.
Dr Rennie also said that while small businesses in Queensland had received significant out-of-cycle support during the pandemic, they would likely feel neglected from Tuesday’s announcement.
“The $500 million Backing Queensland Investment Fund targets businesses that are in a position to aggressively expand their operations, that is, businesses which have come through the pandemic relatively unscathed. Most small businesses are unlikely to be in a position to take advantage of this fund,” Dr Rennie said.
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“Payroll tax relief provides a short-term win for businesses but will still have to be repaid later. As a practical matter, it merely pushes the liability down the road.
“The budget is a missed opportunity to implement long-term structural reform, like the property tax reform the NSW state government is pursuing.”
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