Revenue and Other Legislation Amendment Bill 2019
Plain English Summary
Overview
This bill implements revenue measures from the 2019-20 Queensland Budget. It raises land tax rates on large corporate landholdings and foreign owners, increases the petroleum royalty rate from 10% to 12.5%, adjusts payroll tax thresholds and rates, and provides targeted tax relief for regional employers and businesses that employ apprentices and trainees.
Who it affects
Large property-owning companies and foreign landowners face higher taxes, while small businesses benefit from a raised payroll tax threshold. Regional employers receive a temporary payroll tax discount, and petroleum producers pay higher royalties.
Land tax
Land tax rates increase for companies and trustees with landholdings above $5 million. A new 2% surcharge is imposed on foreign companies and trustees of foreign trusts. The existing absentee surcharge rises from 1.5% to 2%, but Australian citizens and permanent residents living overseas are now exempt from being classified as absentees.
- Land tax rates for companies and trustees with landholdings above $5 million increase by 0.25 percentage points
- New 2% land tax surcharge on foreign companies and trustees of foreign trusts
- Absentee surcharge increases from 1.5% to 2%
- Australian citizens and permanent visa holders living overseas are no longer classified as absentees
Payroll tax
The payroll tax exemption threshold rises from $1.1 million to $1.3 million, reducing the tax burden for smaller employers. Larger employers with payrolls above $6.5 million pay a higher rate of 4.95%. Regional employers receive a 1% rate discount for four years, and the 50% rebate for apprentice and trainee wages is extended.
- Payroll tax exemption threshold increases from $1.1 million to $1.3 million
- Higher payroll tax rate of 4.95% for employers with wages above $6.5 million
- 1% payroll tax discount for regional employers for four financial years ending 30 June 2023
- 50% payroll tax rebate for apprentice and trainee wages extended to 30 June 2021
Petroleum royalty
The petroleum royalty rate increases from 10% to 12.5% of the wellhead value of petroleum. A transitional rate of 11.25% applies for the annual return period ending 31 December 2019.
- Petroleum royalty rate increases from 10% to 12.5%
- Transitional rate of 11.25% for the annual return period ending 31 December 2019
Transfer duty and tax administration
The Duties Act is amended to clarify that consideration includes non-monetary consideration and to ensure partnership land-holdings count for landholder duty. The Auditor-General Act is amended to let the Treasurer access audit information for budgeting purposes. Tax and royalty administration is modernised with new online service provisions.
- Consideration for transfer duty purposes clarified to include non-monetary consideration
- Partnership land-holdings included in landholder duty calculations
- Treasurer gains access to Auditor-General information for whole-of-government budgeting
- New OSR Online portal provisions for electronic tax and royalty document management
Bill Story
The journey of this bill through Parliament, including debate and recorded votes.
▸Committee11 June 2019View Hansard
Referred to Economics and Governance Committee
▸Second Reading13 June 2019View Hansard
▸40 members spoke18 support19 oppose3 mixed
Criticised the budget for higher taxes, bigger debt, fewer jobs and less infrastructure. Attacked the government's handling of youth justice, Sunshine Coast infrastructure, homelessness funding and cost-of-living pressures.
“More taxes, bigger debt, fewer jobs, less infrastructure.”— 2019-06-14View Hansard
Delivered the opposition budget reply, arguing Labor's budget delivered higher taxes, more debt, fewer jobs and less infrastructure. Outlined the LNP's alternative plan including a no-new-tax guarantee, royalty freeze, new dams, and air-conditioning all state schools.
“It is clear that Queensland cannot afford Labor and Queensland cannot trust Labor either. Its fiscal principles are now in the waste bin and so are its forecasts.”— 2019-06-13View Hansard
Supported the budget as investing in environment, arts, science and her electorate. Highlighted $898 million for the Department of Environment and Science, national park revitalisation, koala conservation and the container refund scheme creating 640 jobs.
“For my portfolio, this is a budget that is investing in the protection of our unique biodiversity today and acknowledging the needs of our communities, our cities and our state for tomorrow.”— 2019-06-14View Hansard
Spoke as Minister for Agricultural Industry Development and Fisheries, highlighting the budget's increased investment in agriculture, biosecurity, drought support and fisheries reform, as well as local infrastructure for the Ferny Grove electorate.
“The increased 2019-20 budget for agriculture and fisheries is $525 million and contains ongoing funding to support producers grappling with serious and persistent drought conditions across much of the state.”— 2019-06-13View Hansard
Called the budget disappointing for the Gold Coast, criticising the lack of spending on schools in his electorate and road infrastructure. Raised concerns about law and order, debt burden and higher taxes.
“This budget is disappointing. Many members have risen in the House over the past 24 hours to talk about the debt burden, the higher taxes and the lack of critical spending in important areas.”— 2019-06-14View Hansard
Criticised the budget as delivering higher taxes, more debt, fewer jobs and less infrastructure. Raised concerns about health system failures, the waste levy's impact on local businesses, and lack of road and transport investment for the Moggill electorate.
“Under the LNP debt will always be lower and the LNP will always implement a responsible debt stabilisation plan, unlike the Palaszczuk Labor government.”— 2019-06-13View Hansard
Supported the budget as delivering for justice, courts and the Redcliffe community. Highlighted $57.7 million for courts, additional prosecution staff, QCAT funding and local infrastructure investments.
“I am proud to be a member of the Palaszczuk government that is delivering on health, education, infrastructure, community safety and social support services for Queenslanders and my local community of Redcliffe.”— 2019-06-14View Hansard
Congratulated the Treasurer on a budget that delivers for Ipswich West, highlighting education infrastructure including new classrooms at Ipswich State High School, road upgrades and health funding.
“This is a strong Labor budget and one that delivers for all Queenslanders.”— 2019-06-13View Hansard
Acknowledged the budget delivered well for schools and roads but criticised the lack of nation-building infrastructure such as dams and rail. Called it a good Labor budget but said regional Queensland needed more consultation and investment.
“In my opinion, this is a very good Labor budget. It has done very well in delivering funding for schools and roads.”— 2019-06-14View Hansard
Criticised the budget for failing small businesses and the Scenic Rim electorate, highlighting high electricity costs for farmers, neglect of the Mount Lindesay Highway, and Labor's appetite for taxing, spending and borrowing.
“There is no end to the Labor government's appetite for taxing and spending and borrowing and spending. All of this waste, incompetence and sheer mismanagement by the government is bad for business and bad for the people who employ people.”— 2019-06-13View Hansard
Supported the budget as delivering for fire and emergency services, Far North Queensland roads and schools. Highlighted new career firefighters, $104 million in QFES capital expenditure and the Smithfield Bypass.
“This is a fantastic QFES budget. It is a fantastic Palaszczuk government budget.”— 2019-06-14View Hansard
As former Treasurer, delivered a detailed critique comparing the budget to the Bligh-era debt crisis, highlighting record $90 billion debt, abandoned fiscal principles, tax revenue growth outstripping the economy, and zero new investment for the Clayfield electorate.
“The 2019-20 budget is a testament to the failures of the Palaszczuk Labor government. This year's budget serves to highlight yet again Labor's ineptitude and lack of a plan.”— 2019-06-13View Hansard
Attacked the budget as delivering higher taxes, record debt and nothing for the Sunshine Coast. Called Treasurer Trad the worst in Queensland's history and criticised nine new taxes ripping $1.25 billion from the economy.
“After 4½ years, Labor's legacy for Queensland is a massive debt bomb of $90 billion, nine new taxes, one of the worst unemployment rates in the country and a youth jobs crisis all over regional Queensland.”— 2019-06-14View Hansard
Praised the budget as delivering for Central Queensland and Keppel, highlighting record education spending, school infrastructure, the Rockhampton Northern Access Upgrade, and a new 42-bed alcohol and drug rehabilitation facility.
“I really think this is a budget for regional Queensland. It is a tourism budget and an agriculture budget. It goes to the heart of education and health and creating jobs in our regions.”— 2019-06-13View Hansard
Supported the budget as creating jobs and investing in skills, training and local infrastructure. Highlighted over 200,000 jobs created since 2015, payroll tax relief for small business and investment in health and education in his electorate.
“I am proud to be part of the Palaszczuk Labor government that has created over 200,000 jobs since being elected in 2015.”— 2019-06-14View Hansard
Argued the budget was more of an IOU than a love letter to the regions, with multiple reannouncements of partially funded projects in his electorate. Criticised wasted money on Brisbane cyclepaths while regional hospitals and schools are neglected.
“As a member who represents a quarter of Queensland's land mass in the heart of the state, let me tell members that this budget is more of an 'IOU' note than a love letter.”— 2019-06-13View Hansard
Criticised the debt trajectory towards $90 billion, the sensitivity of the budget to coal royalties, and new property taxes. Argued Labor had presided over 25 of 30 years of government and taken state debt from $2.4 billion to $90 billion.
“From $2.4 billion in 1989 we now have over $90 billion debt after 25 years out of 30 of Labor governments, and that is what we are now left with. What do we have to show for it? Nothing!”— 2019-06-14View Hansard
Criticised the budget for failing the fastest growing region in Queensland, with no funding for a police hub, no hospital, inadequate road exit upgrades, and key transport projects pushed out into the future.
“This minister continues to plan to plan, but he does not plan to build.”— 2019-06-13View Hansard
Supported the budget as delivering $885 million in payroll tax relief for small business, free TAFE, $105 million in TAFE capital works and local infrastructure for the Waterford electorate including M1 upgrades and Logan Hospital expansion.
“This is a budget for all Queenslanders—a budget that promotes at its core the belief that all Queenslanders deserve access to skills and training, the skills they need to participate in our economy and reach their full potential.”— 2019-06-14View Hansard
Supported the budget, highlighting education funding for local schools, health initiatives for the QEII Hospital area, road and busway improvements, and sport infrastructure in the Toohey electorate.
“The Palaszczuk Labor government is committed to ensuring that it delivers a transport system for all Queenslanders.”— 2019-06-13View Hansard
Criticised the budget for failing the Gold Coast, highlighting no funding for light rail, delayed Coomera Connector, neglected schools and inadequate health funding. Acknowledged suicide prevention funding as welcome.
“Overall this budget lacks understanding and care for the Gold Coast region. It fails to adequately provide for its current population, let alone the growth it is experiencing.”— 2019-06-14View Hansard
Called the budget irresponsible and ill-conceived, criticising the government's addiction to debt and taxes, failure to fund Sunshine Coast rail duplication, and lack of action on road congestion and community safety on the Sunshine Coast.
“It is a budget of waste and mismanagement. It is a budget of higher taxes, more debt and less jobs. It is a budget that shifts the responsibility for paying down Queensland's massive state debt to the next generation.”— 2019-06-13View Hansard
Praised the budget for delivering nearly $20 million for schools in Mansfield, creating 58 jobs on school sites and investing in education infrastructure. Contrasted Labor's vision with the Newman government's school closures.
“A quality education transforms the lives of individuals, families and whole communities.”— 2019-06-14View Hansard
Supported the budget as delivering for the bayside community, highlighting new classrooms at Darling Point Special School, health grants, TAFE upgrades, payroll tax relief for small business and cost-of-living concessions.
“We all want the very best education for our kids, we all want the very best health care, we all want a decent job and we all want to be able to pay our bills and to have some money left over. That is what the Palaszczuk Labor government gets.”— 2019-06-13View Hansard
Criticised the budget for delivering crumbs to the Gympie electorate through reannouncements and rebadging. Highlighted the $90 billion debt, $1.25 billion in new taxes, cuts to the Department of Agriculture and neglect of rural infrastructure.
“Labor is addicted to putting everything on the credit card, crossing its fingers and hoping that the problems will go away.”— 2019-06-14View Hansard
Criticised the budget for ignoring the Nicklin electorate, particularly the delayed Nambour Police Station project. Accused Labor of spending money saving the Deputy Premier's seat while taking billions in tax from Queenslanders.
“It seems that the only way you get any attention from this Labor government is if you are a prisoner who wants lobster at your wedding or a black-throated finch, because once again there is barely a nickel for Nicklin in this budget.”— 2019-06-13View Hansard
Criticised the budget for neglecting the Wide Bay-Burnett region, receiving the second lowest capital budget despite having the greatest population outside the south-east. Highlighted no funding for a new Bundaberg hospital business case, roads, flood mitigation or the Hinkler Regional Deal.
“For the second year in the row the Wide Bay-Burnett region has been allocated the second lowest capital budget in regional Queensland, despite having the greatest population outside of the south-east.”— 2019-06-14View Hansard
Supported the budget as delivering for north-side Brisbane, highlighting education funding for Aspley schools, the Linkfield Road overpass project, and sports infrastructure upgrades.
“This budget is also a great win for local schools.”— 2019-06-13View Hansard
Criticised the budget for failing to give security to businesses, boost jobs or keep the lid on cost-of-living pressures. Tabled multiple newspaper articles critical of the budget and highlighted the impact of new taxes on tourism and regional businesses.
“The budget brought down by this government does nothing to give security to small and large businesses, nor does it boost jobs or employment, nor does it keep the lid on cost-of-living pressures in Hervey Bay.”— 2019-06-14View Hansard
Criticised the budget as reckless, highlighting record $90 billion debt, failures in tourism, lack of ecotourism investment, declining koala populations, and inadequate funding for Gold Coast infrastructure including light rail stage 3.
“If there is a headline for this budget that every one of us should come in and hang our heads in shame that we are not debating every minute of every day, it is the fact that for the first time in this state our debt level will go past $90 billion.”— 2019-06-13View Hansard
Supported the budget as delivering significant health infrastructure including the $400 million Caboolture Hospital upgrade, education investment and transport improvements for the Morayfield electorate.
“The member for Pumicestone is criticising a $400 million investment in health infrastructure.”— 2019-06-14View Hansard
Strongly supported the budget as the best for Redlands in over a decade, highlighting the $37 million Cleveland Redland Bay Road upgrade, island jetty upgrades, TAFE expansion, school investments and Redland Hospital improvements.
“I promised to be a strong voice for our community, to listen, work hard and fight for the needs of our growing region, and that is just what I have been doing for the last 18 months.”— 2019-06-13View Hansard
As Treasurer, defended the budget in reply, highlighting the LNP's inability to deliver fiscal surpluses, Queensland's tax competitiveness, Cross River Rail delivery and $885 million payroll tax relief. Promoted investment in South Brisbane schools and infrastructure.
“Any day of the week I will stack up our track record on managing finances, on delivering to Queenslanders and, most importantly, on creating jobs in this state against those opposite.”— 2019-06-14View Hansard
Criticised the budget for failing rural and regional Queensland, highlighting deteriorating roads, overcrowded schools, agriculture sector neglect, rising crime, and electricity prices that have increased 130 per cent for farmers over 10 years.
“Just when I thought it could not get any worse than last year's budget for rural and regional Queensland, this budget has beaten it by a country mile.”— 2019-06-13View Hansard
Praised the budget as delivering strongly for Maryborough, highlighting school upgrades, road safety improvements including turning lanes on the Cooloola Coast road, a $29 million increase for the Wide Bay Hospital and Health Service, and sport and community infrastructure.
“This is the fourth budget. Every time I look at the budget for Maryborough I do not think it can get any better, but we have beaten it again.”— 2019-06-13View Hansard
Acknowledged health and education spending in his electorate but criticised the lack of nation-building infrastructure investment, particularly the failure to progress CopperString energy transmission, unsealed roads to key tourism sites, and the treatment of rail, water and energy assets as cash cows rather than industry enablers.
“If I were a punter sitting at home and I saw a government investing in dams, transmission lines, rail and road in our large industry base areas, I would start to wake up and say, 'These guys are serious about turning things around in industry.'”— 2019-06-13View Hansard
Defended the budget against opposition criticism, highlighting education, health and energy investments. Pointed to LNP hypocrisy on debt, noting federal coalition and Brisbane City Council debt levels. Highlighted local infrastructure including the Deception Bay Road overpass.
“This budget means more for Queensland—more jobs and more job security; more schoolrooms and more teachers; more hospitals beds, more doctors and more nurses.”— 2019-06-13View Hansard
Criticised the budget for raising taxes and debt while reducing infrastructure spending. Highlighted the Gold Coast receiving little funding, the building certifier insurance crisis, rising wholesale electricity prices, and struggling foundry businesses.
“This is a budget that raises taxes, debt is up, jobs are down and infrastructure spending is down. That just goes to prove that you cannot trust Labor.”— 2019-06-13View Hansard
Strongly defended the budget's investment in Logan, detailing $45.7 million for the Mount Lindesay Highway, new schools, ambulance stations and sports infrastructure. Contrasted it with the LNP's record of cuts, sackings and sell-offs.
“The Deputy Premier and Treasurer put forward a different vision of security, support, stability and services. For a growing area like Logan we need support, not the service cuts; we need stability, not the sackings.”— 2019-06-13View Hansard
Acknowledged some positive projects including the Walkerston bypass and Rookwood Weir, but criticised the budget for underwhelming road investment across his vast electorate, failure to progress the Upper Connors Dam, and inadequate support for agriculture, health and emergency services in regional areas.
“Reflecting on the budget, I feel the electors of Mirani are not getting their fair share.”— 2019-06-13View Hansard
▸In Detail14 June 2019View Hansard
▸6 members spoke1 support5 oppose
As shadow Treasurer, led opposition questioning during Consideration in Detail, opposing land tax surcharges on foreign companies, increased absentee surcharges and petroleum royalty increases. Argued these were job-destroying taxes introduced without consultation that blindsided industry.
“This tax is a job-destroying tax as are the other taxes that this government has introduced in this budget and the budget before it.”— 2019-06-14View Hansard
Spoke extensively during Consideration in Detail against land tax increases on foreign companies, highlighting the impact on regional employers including sugar millers Bundaberg Sugar and MSF Sugar. Argued the taxes would drive foreign investors away from Queensland.
“Are we honestly going to say to the global community that Queensland is now the highest taxed community to come and invest in? That is unacceptable.”— 2019-06-14View Hansard
As former Treasurer, opposed multiple clauses of the Revenue bill. Argued foreign investment taxes would increase rents for small businesses, that the petroleum royalty increase was driven by a revenue hole rather than good policy, and that Queensland needed to be more competitive than other states, not just match them.
“Queensland needs to be doing better than New South Wales and Victoria. We need to be cheaper than New South Wales and Victoria. We do not need to be the same as them.”— 2019-06-14View Hansard
Opposed the land tax and petroleum royalty increases, arguing they created sovereign risk and would drive foreign investors away. Spoke from personal business experience about how investors assess tax environments before committing capital.
“If foreign investors are looking at Queensland at the moment and have the target moved constantly on them by a government that does not understand what it is doing and thinks that it can tax its way everywhere, we will see such companies reassess whether they in fact want to invest in Queensland.”— 2019-06-14View Hansard
Opposed the petroleum royalty increase as a 25 per cent overnight cost increase that taxes the regions. Questioned what modelling was done on impacts to domestic gas prices and electricity costs, and highlighted the double dip of land tax and royalty increases on CSG companies.
“No business can afford a cost increase of 25 per cent overnight without some consequences.”— 2019-06-14View Hansard
Spoke briefly in support of the payroll tax clause, arguing Labor is the party of small business and commending the Treasurer for putting small business at the centre of the budget.
“Labor is the party of small business. For too long the Liberal National Party has taken small business for granted.”— 2019-06-14View Hansard