Date posted: 14/07/2022

Tax changes in Queensland

Legislation enacted to implementing various tax changes announced by the Queensland Government

After passing Queensland Parliament, the Revenue Legislation Amendment Bill 2022 (the Bill) received Royal Assent on 22 June 2022.

The Bill amends a range of Queensland revenue legislation. It is designed to implement tax changes announced by the Queensland Government in the 2022-23 Queensland Budget, the 2021-22 Mid-Year Fiscal and Economic Review and the 2021-22 Queensland  Budget. Further minor amendments are also made by the Bill.

Changes to coal royalties

To implement the recent Queensland Budget announcement, the Bill amends the Mineral Resources Regulation 2013 to introduce three additional tiered rates for coal royalties. The three new tiers will apply at A$175 (20 per cent), A$225 (30 per cent) and A$300 (40 per cent). These tiers will take effect from 1 July 2022. 

Payroll tax changes

The Bill amends the Payroll Tax Act 1971 to implement the 2022-23 Queensland Budget measure to impose a new mental health levy. The levy will be payable by employers, or groups of employers, with annual Australian taxable wages (for payroll tax purposes) over $10 million. It will be valued at 0.25 cents per dollar for wages over $10 million, and 0.75 cents per dollar for wages over $100 million, taxed at a marginal rate. The levy will begin from 1 January 2023.

Other payroll tax changes include an increase to the phase out rate for deductions (from 1 January 2023), implementing a measure to extend the 50 per cent rebate for wages paid or payable to apprentices and trainees to include wages paid or payable during the financial years ending on 30 June 2022 and 30 June 2023.

Amendments to Duties Act 2001

The Bill amends the Duties Act 2001 to provide an exemption from additional foreign acquirer duty for holders of subclass 405 and 410 visas (retirement visas) on the purchase of their principal place of residence on or after 1 January 2023, subject to certain conditions.

Further minor and technical amendments are made to the Duties Act 2001 and the Duties Regulation 2013, including retrospectively providing an exemption from transfer duty and vehicle registration duty for certain transactions relating to small business restructures from 7 September 2020 or 28 June 2021.  

Land tax reform

The Land Tax Act 2010 is being amended to implement a land tax reform announced in the 2021-22 Budget Update – Mid-Year Fiscal and Economic Review. 

The reform will enable an owner’s liability for land tax to be determined based on the total value of their Australia-wide landholdings that are not excluded, rather than solely on their Queensland non-exempt landholdings. This value will be used to determine whether the owner has exceeded the tax-free threshold and the applicable general rate of land tax that will apply to the Queensland proportion of their relevant Australia-wide landholdings. 

Land tax will continue to be imposed only on non-exempt Queensland land. The land tax reform will be implemented from the 2023-24 financial year (i.e. for land tax liabilities arising on 30 June 2023).

HomeBuilder Grant

The First Home Owner Grant and Other Home Owner Grants Act 2000 is retrospectively amended, from 1 January 2021, to clarify that the amount of the HomeBuilder Grant is $15,000 for eligible transactions where the contract was made between 1 January 2021 and 31 March 2021, in accordance with the Federal Government’s policy. The State and Territory Governments administer the HomeBuilder Grant on behalf of the Federal Government.

Revenue Legislation Amendment Bill 2022

Downland a copy of the Bill and the Explanatory Memorandum

Find out more

Queensland Budget 2022-23 Overview

The Queensland budget invests record funding in the health system, introduces a new mental health levy and increases coal royalties.

Read more

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