2015/16 Queensland State Budget

The Queensland Government State Budget was handed down on 14 July 2015.

Budget papers are available here: http://www.budget.qld.gov.au/

This year’s budget includes developments relating to payroll tax and research and development initiatives. The key revenue measures are detailed below.

Payroll Tax

Apprentices & Trainees Rebate

  • A payroll tax rebate of 25 percent on the wages paid to eligible apprentices and trainees will be available from 1 July 2016. The rebate is in addition to these wages being exempt from payroll tax.
  • The rebate scheme will be available until 30 June 2018 and will be used to offset against payroll tax payable on the wages of other employees.
  • This measure is expected to cost $45m over the three year period to 30 June 2018.

Deferral of the threshold increase

  • The Government confirmed that it has deferred implementation of planned increases in the payroll tax threshold by $100,000 on 1 July 2015 and each year thereafter until the threshold reached $1.6m on 1 July 2019. The current threshold is maintained.
  • This measure is expected to cost $400m over the four year period to 30 June 2019.

Payroll tax exemption – Advance Queensland research programs

  • The Queensland Government will provide a 3-year payroll tax exemption for new companies established in Queensland as part of Advance Queensland research programs.

Other – Research and Development

  • This year there is a large focus on Research and Development initiatives. The Government is willing to examine opportunities to offer time-limited R&D tax credit matching program for technology start-ups establishing or relocating to Queensland.
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