Employing Queensland

Payroll Tax

Employing Queensland

What is the issue?

Payroll tax is a direct tax on an employer for giving someone a job. Payroll tax is a tax on the fair go. It prevents young people entering the workforce, mature age workers gaining employment later in life, and acts unequivocally as an impediment to business growth.

At CCIQ, we’ve done the numbers. Our modelling shows that by lifting the payroll tax threshold from $1.1 million to $1.5 million, tax relief could be offered to approximately 15,500 Queensland businesses. By lifting the payroll tax threshold, these changes will deliver 2000 direct jobs in addition to flow on effects for indirect jobs across Queensland.

What policy commitments do we want from candidates?
  • Commit to lifting the payroll tax threshold from $1.1 million to $1.5 million to create more than 2,000 jobs in the private sector.
  • Commit to progressively lifting the threshold by increments of $100,000 to $2 million over the 5 years following, at which time payroll tax should be completely abolished.
  • Commit to not introducing any new taxes or charges for business in Queensland.

Red Tape

What is the issue?

One step forward, two steps back. Red tape has increased in the past two years to the detriment of businesses across Queensland. 7 in 10 businesses believe their businesses to be majorly impacted by government regulatory requirements. More than 50 per cent of businesses saw an increase in cost and time when dealing with government red tape. What makes the situation worse is that over 50 per cent businesses across Queensland rated the State government very poor when it comes to consultation. 

Red tape costs businesses a projected $100 billion a year, a real handbrake on the economy. Over 40% of small business owners are saddled with regulation compliance and spend up to 5 hours a week completing paperwork and understanding their obligations. That is 5 hours not dedicated to growing a business, spending time with family and actively contributing to communities.

Dealings with the Queensland Industrial Relation Commission has risen to the third highest burden, up from 6th two years ago. Workplace Health and Safety compliance is the 2nd most burdensome regulation compliance behind the Australian Tax Office in first place. Regulation needs to be more flexible as one size does not fit all. Applying old economy regulation to new economy businesses is detrimental to business vitality and innovation. Red tape must be efficient and necessary; not cumbersome and ineffective.

What policy commitments do we want from candidates?
  • Set targets within each department to reduce red tape by 25% every year.
  • Set a ‘one on, two off’ policy by repealing two policies and replacing with one efficient streamlined policy.
  • Enforcing regular reporting by Directors and Ministers of Departments on progress of red tape reduction.
  • Make information on regulatory obligations and proposed legislation more open, accessible and easier to understand.
  • Reduce delays on approvals.
  • Tender for share of $300 million of Federal funds to reduce red tape for small businesses.

Workforce Skilling  

What is the issue?

Businesses are constantly frustrated by lost opportunities when they have difficulty recruiting appropriately skilled staff. Youth unemployment has been a pressing issue for Queensland, with the youth unemployment rate remaining stubbornly high across Queensland’s regions. Queensland’s education and training system will need to keep pace with economic and technological changes, and provide the right teaching structure and courses to allow for continual upskilling. This will be vital given lifelong learning will apply to both low-skilled and high-skilled employees in a 21st century global economy.

What policy commitments do we want from candidates?
  • De-risk businesses when they take on apprentices and/ or trainees through providing more attractive incentives, reducing the amount of red tape associated with taking on an apprentice/trainee, and providing more support programs for employers taking on apprentices and trainees.
  • Commit to tangible funding incentives to address unemployment, particularly youth unemployment in the regions.
  • Re-introduce the Queensland Apprenticeship Pledge, which incentivised businesses that had not previously employed an apprentice to consider taking on an apprentice / trainee.