Revenue and Other Legislation Amendment Bill 2019
Bill Journey
Referred to Economics and Governance Committee
Referred to Health, Communities, Disability Services and Domestic and Family Violence Prevention Committee
Plain English Summary
Overview
This bill implements the 2019-20 Budget revenue measures, making significant changes to land tax, payroll tax, and petroleum royalties. It raises taxes on large landholders and foreign property owners while providing relief for small businesses, regional employers, and those who hire apprentices.
Who it affects
Large employers pay higher payroll tax, while small and regional businesses benefit from exemptions and discounts. Foreign property investors face new surcharges, Australian expats get relief, and petroleum producers pay higher royalties.
Land tax increases and foreign surcharge
Companies and trustees with landholdings above $5 million face higher rates. A new 2% surcharge applies to foreign companies and trusts, while Australian citizens living overseas are no longer treated as absentees and pay lower rates.
- Land tax rates increase by 0.25 percentage points for holdings above $5 million
- New 2% surcharge on foreign companies and trusts owning property
- Absentee surcharge increased from 1.5% to 2%
- Australian citizens and permanent residents abroad now taxed as residents, not absentees
Payroll tax reform
The exemption threshold rises, benefiting smaller employers, while large employers with payrolls above $6.5 million pay a higher rate. Regional employers and those hiring apprentices receive significant discounts.
- Exemption threshold increased from $1.1 million to $1.3 million
- New higher rate of 4.95% for employers with wages above $6.5 million
- 1% payroll tax discount for regional employers for four years
- 50% apprentice and trainee wage rebate extended to June 2021
Petroleum royalty increase
The petroleum royalty rate increases from 10% to 12.5% of wellhead value, with a transitional rate of 11.25% applying for the 2019 annual return period.
- Petroleum royalty rate increased from 10% to 12.5%
- Transitional rate of 11.25% for the 2019 annual return period
Tax administration modernisation
A new online portal (OSR Online) will allow taxpayers to manage their tax and royalty obligations electronically, with 24/7 availability.
- New OSR Online portal for managing tax and royalty obligations
- Documents can be given and received electronically through the portal
- Treasury granted access to Auditor-General information for budget monitoring