State Tax measures from the QLD Budget

State Tax measures from the QLD Budget

On 14 June 2016, the Queensland Treasurer, Curtis Pitt, delivered the 2016–17 Queensland State Budget. The Budget focuses on the three I’s: innovation, investment and infrastructure. Sam Mohammad, State Taxes Specialist, looks at the Queensland State Budget 2016–17 from a State Taxes perspective.

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Key measures

The Queensland State Budget contains the following key State tax measures:

  • Imposition of a 3 percent transfer duty surcharge for foreign purchasers of residential property from 1 October 2016. This measure is expected to raise $90 million over the next 4 years and is intended to be similar in scope to the existing 7 percent transfer duty surcharge in Victoria and the proposed 4 percent transfer duty surcharge to be included in this year’s New South Wales’ (NSW) Budget.
  • Two-year $100 million “Back to Work” package that seeks to encourage employers to take on new staff in regional Queensland. The package continues the existing payroll tax rebate for apprentices and trainees and will now include support payments for regional employers of $10,000 for hiring (and retaining for 12 months) an unemployed person. Payments will increase to $15,000 where that person is a long-term unemployed person. 
  • Extension of the family farm transfer duty concession to allow for the transfer of the family farm to the next generation without duty 
  • An additional $10 million in funding for the Office of State Revenue to increase its compliance activities. One area of increased focus will include taxpayers who may have incorrectly claimed not-for-profit status in order to access land tax and payroll tax exemptions. 
  • A temporary, 12-month increase in the First Home Owners’ Grant from $15,000 to $20,000. The increased grant will be available for contracts signed between 1 July 2016 and 30 June 2017 for new houses, units or townhouses valued at less than $750,000.
  • There are no intended changes to either the rate or scope of the Queensland royalty regime.

References

Media Release | Queensland Cabinet and Ministerial Directory website | http://statements.qld.gov.au

Budget Papers | Queensland Budget website | http://budget.qld.gov.au

Appropriation Bill 2016 (PDF 382KB) & Appropriation (Parliament) Bill 2016 (PDF 256KB) | QLD Legislation website | www.legislation.qld.gov.au

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