Queensland businesses affected by the coronavirus will now not have to pay payroll tax on the federal government’s JobKeeper payments, thanks to the state government.
Under the Palaszczuk government’s $4 billion coronavirus assistance package has already refunded around $30 million of payroll tax paid by Gold Coast businesses alone, over the months of January and February.
Though now, further steps have been taken to ensure that heavily affected small and medium businesses won’t have to pay payroll tax for the rest of 2020.
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Premier Annastacia Palaszczuk has revealed that businesses won’t have to pay payroll tax on the JobKeeper payments either.
“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.
“But 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 says 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.
Assistant Minister for Tourism Industry Development and Member for Gaven Meaghan Scanlon MP says around 1,099 Gold Coast businesses have already been refunded payroll tax pay, and will continue to receive the help that they need.
“One of my top priorities has been to fight hard to protect local jobs, and give businesses a break during these unprecedented times.
“Payroll tax paid by businesses this year has been refunded to help ease cash-flow challenges that they are facing, keeping locals in a job and local suppliers paid.
“In addition to the refunds for these locally-based businesses, significant payroll tax refunds have also been paid to large state and national companies which employ locals,” says Ms Scanlon.
No Queensland business will have to pay payroll tax for the rest of the year, with the state government offering a payroll tax holiday for March through to May 2020, and payroll tax payments from June until the end of December will be deferred until January next year.
“No small or medium sized business on the Coast who has been adversely affected by COVID-19 will need to make a single payroll tax payment for the rest of 2020.
“We’re doing the heavy lifting to help local businesses when it’s needed the most to save local jobs.
“These initiatives are part of a $4 billion relief package for Queenslanders – the biggest single investment of any Australian state or territory – to support health, jobs, households and businesses,” says Ms Scanlon.
COVID-19 assistance already announced by the Palaszczuk Government includes:
• $300 million household relief package already delivering households $200 off power bills
• $500 power account rebate being paid to sole traders and small and medium businesses
• $500 million to help workers who have lost their income to find jobs in industries getting us through COVID-19 – healthcare, agriculture, food production, transport, cleaning and mining
• $500 million in concessional loans for business; and
• $400 million in land tax relief for property owners to pass on to tenants
For more information on the state government’s coronavirus assistance package, click here.