[Australia] Mining company is sole business hit by Qld payroll tax amendment

Glencore - the Swiss commodity trading and mining multinational - will be the sole company affected by a Queensland payroll tax amendment. The change is set to cost Glencore $20 million and could potentially heighten tensions between the government and the resources sector, Financial Review reports.

According to The Australian Financial Review, the June 11 state budget will amend the eligibility criteria for a regional payroll tax discount, leading to a $5 million annual increase in the state’s revenue for the next four financial years.

Treasurer Cameron Dick reportedly said that the regional discount would continue for smaller operators headquartered outside Queensland’s south-east but be significantly broadened from a $6.5 million taxable wages threshold.

Businesses with taxable wages above $350 million will no longer have access to the discount.

Mr Dick reportedly said that the $5 million yearly bill increase “won’t result in a significant change in revenue for the state” but he stressed it was “an important anomaly to remove and to make sure those big companies are all treated the same”.

“There is a business that has a wage bill in excess of $350 million which is a significant multiple of six and a half million,” he told the Financial Review.

“Our view is that they have a greater capacity to contribute to the revenue of the state.

“We think that is a distortion in our payroll tax system – so we will be changing the system to ensure they will pay the rate other large businesses pay in Queensland, particularly those businesses in the metropolitan part of south-east Queensland.”

The government reportedly locked horns with the resource industry following its increase in coal royalties two years ago. The revenue was used to prop up the state’s finances, make considerable investments in major projects and fund cost of living support measures.

When asked whether he was worried that the latest tax amendment would re-ignite hostilities with the sector, the treasurer said, “No.”

“They’ve done well out of Queensland and we don’t think removing that anomaly is unfair or inappropriate,” Mr Dick said.

Source: Financial Review

(Quotes via original reporting)

Glencore - the Swiss commodity trading and mining multinational - will be the sole company affected by a Queensland payroll tax amendment. The change is set to cost Glencore $20 million and could potentially heighten tensions between the government and the resources sector, Financial Review reports.

According to The Australian Financial Review, the June 11 state budget will amend the eligibility criteria for a regional payroll tax discount, leading to a $5 million annual increase in the state’s revenue for the next four financial years.

Treasurer Cameron Dick reportedly said that the regional discount would continue for smaller operators headquartered outside Queensland’s south-east but be significantly broadened from a $6.5 million taxable wages threshold.

Businesses with taxable wages above $350 million will no longer have access to the discount.

Mr Dick reportedly said that the $5 million yearly bill increase “won’t result in a significant change in revenue for the state” but he stressed it was “an important anomaly to remove and to make sure those big companies are all treated the same”.

“There is a business that has a wage bill in excess of $350 million which is a significant multiple of six and a half million,” he told the Financial Review.

“Our view is that they have a greater capacity to contribute to the revenue of the state.

“We think that is a distortion in our payroll tax system – so we will be changing the system to ensure they will pay the rate other large businesses pay in Queensland, particularly those businesses in the metropolitan part of south-east Queensland.”

The government reportedly locked horns with the resource industry following its increase in coal royalties two years ago. The revenue was used to prop up the state’s finances, make considerable investments in major projects and fund cost of living support measures.

When asked whether he was worried that the latest tax amendment would re-ignite hostilities with the sector, the treasurer said, “No.”

“They’ve done well out of Queensland and we don’t think removing that anomaly is unfair or inappropriate,” Mr Dick said.

Source: Financial Review

(Quotes via original reporting)