2018-19 QLD Budget update – taxes on the rise

The tax-related measures in this year’s Queensland State Budget are few, with foreign investors acquiring residential land again in the firing line and motorists being hit in the hip pocket for increases in motor vehicle duty.

QLD AFAD – What is the Rate?

The Queensland additional foreign acquirer duty (AFAD) came into effect on 1 October 2016 with an initial rate of 3% and as announced in the Budget, it will increase to 7% from 1 July 2018. This is on top of the base transfer duty payable on the purchase of residential property which in total can be as high as 8.75% (or 12.75 post 1 July 2018) for acquisitions of residential land by foreign purchasers.

Land Tax Increase

From the 2018-19 year, the rate of land tax is is increasing by 0.5 per cent for owners of land who have aggregated landholdings with a taxable value above $10 million.

An increased rate for resident individuals will be 2.25% and for companies, trustees and absentees the increased rate will be 2.5%.

Payroll Tax Rebate – Apprentices and Trainees

The Government is extending, until 30 June 2019, the 50% payroll tax rebate on the exempt wages of apprentices and trainees.

This applies regardless of wages being exempt and is available to offset payroll tax payable on wages to other employees.

Point of Consumption Betting Tax

The Government announces it will be introducing a 15% point of consumption betting tax from 1 October 2018. This tax will now apply to all betting operators licensed in Australia and will be imposed at a rate of 15% of net wagering revenue earned from bets placed by customers in Queensland.

Smaller betting operators may not incur a liability as the rate of 15% applies to taxable wagering revenue exceeding an annual threshold of $300,000 in a financial year. (i.e. no betting tax will be payable where the operator’s revenue is $300,000 or less).

Premium Motor Vehicle Duty

The Government is increasing the amount of vehicle registration duty payable on vehicles valued above $100,000 by $2 per $100 of dutiable value. This excludes heavy vehicles.

The increase will apply from 1 July 2018.