Revenue Legislation Amendment Bill 2022
Bill Journey
Referred to Economics and Governance Committee
Referred to Ethics Committee
Referred to Transport and Resources Committee
Plain English Summary
Overview
This bill implements major revenue changes from the 2021-22 and 2022-23 State Budgets. It reforms land tax to account for interstate property holdings, introduces higher coal royalties during high price periods, creates a mental health levy on large employers, and provides various stamp duty exemptions for small businesses, retirement visa holders, and deceased estates.
Who it affects
Property owners with interstate holdings face potential land tax increases. Coal mining companies pay higher royalties when prices are elevated. Large employers must fund a new mental health levy, while small and medium businesses benefit from extended payroll tax relief.
Land tax reform
From the 2023-24 financial year, Queensland will consider the value of landholdings in other states when calculating land tax. This determines which rate bracket applies, though tax is still only charged on Queensland land.
- Interstate landholdings included when determining tax-free threshold and rate brackets
- Owners must notify Queensland Revenue Office of interstate land details by 31 October each year
- Exemptions for homes, primary production and charitable uses extended to interstate land
- Land tax continues to apply only to Queensland land, but at potentially higher rates
Coal royalty increases
Three new royalty tiers apply when coal prices exceed $175 per tonne, capturing more value for Queenslanders during periods of high commodity prices.
- 20% royalty rate on coal prices between $175-225 per tonne
- 30% royalty rate on coal prices between $225-300 per tonne
- 40% royalty rate on coal prices above $300 per tonne
- New rates apply to coal sold from 1 July 2022
Mental health levy
A new levy on large employers funds mental health services across Queensland, with proceeds dedicated to services consistent with the Mental Health Act 2016.
- 0.25% levy on Queensland taxable wages for employers with annual wages over $10 million
- Additional 0.5% levy on wages exceeding $100 million (total 0.75%)
- Levy applies from 1 January 2023
- Funds dedicated to mental health services and infrastructure
Payroll tax relief for business
Small to medium businesses benefit from extended payroll tax deductions and continued rebates for employing apprentices and trainees.
- Payroll tax deduction ceiling raised from $6.5 million to $10.4 million in wages
- 50% rebate for apprentice and trainee wages extended to 2022-23 financial year
- Deduction phase-out rate changed from $1 per $4 to $1 per $7 of wages above threshold
Stamp duty exemptions
Various exemptions reduce the burden on home buyers with retirement visas, small businesses changing structure, and deceased estates.
- Retirement visa holders (subclass 405 and 410) exempt from 7% additional foreign acquirer duty on their principal residence
- Small businesses can transfer assets worth up to $10 million to a company without stamp duty
- Deceased estate transfers under certain legislation now explicitly exempt
- Transactions for the Debt Retirement Fund exempt from transfer and landholder duty
Gaming machine transfers
A temporary reduction in government commission on gaming machine authority sales encourages hotels to sell unused authorities rather than hold them.
- Transfer commission reduced from 33% to 15% for 12 months
- Applies only to category 1 licensed premises (commercial hotels)
- Does not increase overall gaming machine caps
- Trial to be evaluated by Queensland Treasury