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Queensland announces extra $249m in tax relief for SMEs

Adrian Flores
Adrian Flores
08 September 2020 1 minute readShare
Queensland

The Queensland government has announced an additional $249 million in tax relief to small and medium businesses across the state to help them navigate the economic effects of the coronavirus crisis.

The measures include a two-month waiver for payroll tax for July and August 2020 for businesses with annual Australian taxable wages up to $6.5 million.

JobKeeper subsidy payments will also be exempt from payroll tax, while businesses will be allowed to pay off existing payroll tax deferred liabilities over the course of 2021.

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In addition, businesses renting state government premises and incurring a demonstrable COVID impact will have their rent relief extended to the end of 2020.

The measures follow the Queensland government announcing in May a payroll tax exemption on JobKeeper payments, which it estimated would put $360 million back into the accounts of the state’s businesses over the next six months.

 

Queensland Treasurer Cameron Dick said the measures will help protect small and medium Queensland businesses that continue to bear the brunt of COVID impacts.

“For some workers and businesses, conditions have improved since March,” the Treasurer said.

“But we know that thousands of Queensland businesses, particularly in exposed industries, are still doing it very tough.”

The Queensland government also announced it will work with regional councils to help them refinance their existing debt on more favourable terms.

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“A number of councils have fixed interest loans with rates as high as 8.82 per cent,” Mr Dick said.

“With Queensland Treasury Corporation’s 20-year loan rate currently at 1.92 per cent, refinancing could release as much as $280 million, equivalent to 5 per cent of total council operating expenditure across the state.

“We expect councils to use this funding for job-creating capital works programs across Queensland.”

Queensland announces extra $249m in tax relief for SMEs
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Adrian Flores
Adrian Flores

Adrian Flores is the deputy editor of MyBusiness. Before that, he was the deputy editor for SMSF Adviser as well as features editor for ifa (Independent Financial Adviser), InvestorDaily, Risk Adviser, Fintech Business and Adviser Innovation.

You can email Adrian at [email protected].

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