The Queensland Government has announced an employment growth rebate on payroll tax for eligible employers as part of the 2019-2020 State Budget. A rebate of up to $20,000 can be claimed in the employer’s annual return for the 2019-2020 and/or 2020-2021 financial year if they have employed more than their level of full-time employees.

Payroll Tax

All employers or groups of employers that exceed the annual exemption threshold of $1.3 million in total Australian employee taxable wages must meet the payroll tax requirements and lodge periodic returns of all taxable wages (unless exemptions apply). If the employer is eligible for the rebate, it will form part of the annual return. These annual returns are due no later than 21 July for the 2019-2020 and 2020-2021 financial year.

Are you eligible?

Employers may be eligible for the rebate if they are able to demonstrate all the following conditions:

  • Increase in new full-time permanent positions
  • Employed in Queensland for the 2019-2020 and/or 2020-2021 financial year
  • Must be employed for the whole period of the relevant financial year

If the employer is eligible for the rebate, the Office of State Revenue requires substantiating documents in relation to the employment growth to be provided as part of their annual return. The substantiating documents include records of employer’s total number of employees that are full-time and based in Queensland as at 1 July 2019 and a monthly count on the last day of the month of each employee (excluding employees that are not eligible for payroll tax).

The Rebate

The rebate will be based on the eligible net increase of employment and the employer’s payroll tax amount for the relevant financial year.

If you would like further information or clarification on whether you are an eligible employer, and how much you are eligible for, please do not hesitate to contact our office.

Jemma Whitby