Payroll Tax Rebate, Revenue and Other Legislation Amendment Bill 2015

Introduced: 27/3/2015By: Hon C Pitt MPStatus: PASSED with amendment

Business & Economy Cost of Living Housing & Renting Government & Elections Environment

This summary was generated by AI and has not yet been reviewed by a human.

Plain English Summary

This is an omnibus bill covering multiple policy areas.

Overview

This bill is an omnibus package that amends nine Acts. Its centrepiece is a 25 per cent payroll tax rebate on apprentice and trainee wages for three years, backed by $45 million. It also sets up the legal framework for electronic property conveyancing, creates a stamp duty concession for mining exploration farm-in deals, delays anti-bikie licensing rules by 12 months, and requires licensed plumbers to install water meters.

Who it affects

Employers who hire apprentices or trainees, homebuyers settling property electronically, mining and petroleum explorers, charities, first home buyers, licensed plumbers, and workers in electrical, building and work-health-and-safety industries with past bikie associations.

Apprentice and trainee payroll tax rebate

Extends an existing 25 per cent payroll tax rebate on apprentice and trainee wages to cover the 2015-16, 2016-17 and 2017-18 financial years. The rebate tops up the existing payroll tax exemption on these wages and is funded at $45 million over three years.

Employers get a 25 per cent payroll tax rebate on wages paid to apprentices and trainees
Rebate runs for three years from 1 July 2015 to 30 June 2018
Groups of employers can share any excess rebate among group members
Definitions of certificate II and III traineeships updated to modern Australian Qualifications Framework

Electronic conveyancing for property transfers

Builds a stamp duty framework for electronic property settlements through an approved Electronic Lodgement Network. Buyers and their conveyancers will be able to settle online instead of attending a physical settlement, with duty paid from settlement funds.

Creates 'ELN transfer' as a new type of dutiable transaction for residential property
Allows duty to be paid via a 'payment commitment' out of settlement funds instead of up-front
New 200 penalty unit offences for improper endorsement of electronic transfer documents
Commissioner gets a first-ranking statutory charge over the property if duty is not paid after settlement

Mining exploration farm-in duty concession

Legislates a long-standing transfer duty concession for 'farm-in' agreements in the mineral and petroleum sectors. Money a farmee spends on exploration no longer counts in the dutiable value of the deal.

Exploration spending under qualifying farm-in agreements is excluded from transfer duty
Applies retrospectively to agreements from 13 January 2012
Covers both upfront (interest transferred first) and deferred (spend first, then transfer) farm-ins
New lodgement and notice duties for farmees, with reassessment events when exploration is completed or missed

Other revenue and first home owner grant tweaks

Makes taxpayer-friendly adjustments to duties and grant rules, and requires the Commissioner to pay interest where a taxpayer wins an objection.

Charities keep the vehicle registration duty exemption after using the vehicle for 9 months (down from 12)
Commissioner of State Revenue must pay interest on refunds following a successful objection, aligning Queensland with other states
Commissioner can vary or waive First Home Owner Grant residence requirements at any time (backdated to 4 July 2013)
Payroll tax contractor exemptions must be judged on the whole contract, not parts of it

Treasury financial powers

Modernises the Financial Accountability Act to give the Treasurer more flexibility in delegating powers and dealing with derivative transactions and inter-departmental company transfers.

More powers delegable to Queensland Treasury and Queensland Treasury Corporation officers
Treasurer can explicitly enter into derivative transactions, but only to hedge genuine State risk
Non-public-servants (for example outsourced auditors) can be appointed Head of Internal Audit
When a company moves between departments, the receiving department must get Treasurer approval within four months

Delay of anti-bikie licensing laws

Pushes back by 12 months uncommenced 2013 provisions that would stop declared motorcycle gang members holding certain occupational licences, while the government reviews the laws.

Parts of the Criminal Law (Criminal Organisations Disruption) and Other Legislation Amendment Act 2013 will not commence until 1 July 2016
Covers electrical, building and construction, and work health and safety licences
Ensures licence applications and renewals are not delayed while the review is on foot

Cancelling environmental programs and emissions licences

Adds power for the environment department to cancel Transitional Environmental Programs and Temporary Emissions Licences when they are no longer needed or the activity has stopped.

Programs and licences can be cancelled by agreement or when activity ceases
Holders keep internal review and appeal rights
Removes a barrier to extending the life of the Mount Isa copper smelter beyond 2016

Licensed plumbers to install water meters

Delivers a 2015 election commitment that only licensed plumbers may install water meters at premises. Existing water-industry workers get a two-year transition.

Installing a water meter becomes licensed plumbing work
Water service provider 'authorised persons' lose the exemption to install meters
Two-year transitional period for existing authorised installers
Bulk meters forming part of service provider infrastructure are not covered

How this affects you

Business & Economy

•Employers who hire apprentices or trainees get a 25 per cent payroll tax rebate on those wages for three yearsClauses 65-68Extends the existing rebate on qualifying apprentice and trainee wages to the 2015-16, 2016-17 and 2017-18 financial years, funded at $45 million.
•Mining and petroleum explorers pay no transfer duty on the money they spend exploring under qualifying farm-in dealsClause 15 (new Part 8A)Inserts a new Part 8A in Chapter 2 of the Duties Act so exploration amounts are excluded from the dutiable value of farm-in agreements.
•Businesses that successfully challenge a state tax assessment will now be paid interest on the refundClause 80 (new section 61A)Commissioner must pay interest on a refund of tax or late payment interest resulting from a decision to allow an objection.
•Charities can keep their vehicle registration duty exemption after just nine months of qualifying use instead of twelveClause 21Amends section 416(4)(d) of the Duties Act to reduce the minimum qualifying-use period to nine months.

Cost of Living

•First home buyers get more flexibility if life events stop them meeting the grant residence rulesClauses 60-61Clarifies that the Commissioner can vary or waive First Home Owner Grant residence requirements at any time, backdated to 4 July 2013.
•A payroll tax rebate on apprentice and trainee wages is funded for three years, supporting training jobsClauses 65-68The Government allocated $45 million over three years for the rebate as a 2015 election commitment.
•Taxpayers who win objections on duties, payroll tax or land tax will be paid interest on their refundClause 80 (new section 61A)

Housing & Renting

•Residential property settlements will be able to be done electronically instead of by meeting in personClause 19 (new Part 15)Creates a framework for 'ELN transfers' of residential land through an approved Electronic Lodgement Network.
•If duty is not paid after an electronic settlement, the State gets a first-ranking charge over the property that ranks ahead of mortgagesClauses 19 (new section 156P)A charge over the transferee's interest in land secures unpaid duty and has priority over all other encumbrances.
•First home buyers can ask the Commissioner to vary or waive the six-month residence rule even after time has passedClause 60New section 15(5) of the First Home Owner Grant Act confirms discretion may be exercised at any time.
•Only licensed plumbers will be able to install the water meter at your home (with a two-year transition)Clauses 72-74, 85-87Removes the exemption that let water-service-provider workers install meters; a two-year transitional period applies for existing authorised persons.

Government & Elections

•The Treasurer gains clearer authority to use derivative transactions to hedge State financial riskClause 54Amends section 53 of the Financial Accountability Act to make the power to enter into derivative transactions explicit, limited to hedging.
•Departments can appoint outsourced auditors as Head of Internal Audit rather than needing a public servantClause 55Amends section 78 of the Financial Accountability Act to allow a non-public-service employee to assume the role.
•Rules that would ban people with bikie associations from certain building, electrical and work-safety licences are delayed another 12 monthsClause 4Parts 8, 14 and 24 of the Criminal Law (Criminal Organisations Disruption) and Other Legislation Amendment Act 2013 now commence on 1 July 2016 while the Government reviews the laws.

Environment

•Environmental regulators can cancel Transitional Environmental Programs when the business agrees or has stopped the activityClause 47 (new sections 344E-344G)New Division 3B of the Environmental Protection Act allows cancellation where the holder agrees, has given notice of ceasing, or the authority knows the activity has stopped.
•Temporary Emissions Licences used in emergencies (like flood events) can be cancelled once they are no longer neededClause 50Amends section 357J to allow cancellation of a TEL if the holder agrees or has notified that the activity has ceased.
•Removes a legal barrier to extending the life of the Mount Isa copper smelter beyond 2016Clause 47Explanatory notes state cancellation of an unnecessary TEP removes a potential conflict of conditions and supports the smelter's ongoing operation.

Bill Journey

Introduced27 Mar 2015

First Reading

Committee

Committee Report22 May 2015

Committee report tabled

Second Reading

In Detail

Third Reading

Royal Assent11 June 2015

Referenced Entities

Sectors Affected

Plumbing and Drainage Real Estate Public Administration Taxation Mineral Exploration

Classified using AGIFT/ANZSIC Australian government standards