Treasurer leaves door open to payroll tax reform
Payroll tax quickly emerged as the “elephant in the room” when Mr Janetzki addressed the Nambour Chamber of Commerce on September 3.
QUEENSLAND Treasurer David Janetzki has acknowledged payroll tax is a “tax on employment and aspiration” and says reform could be considered once the State Budget is returned to stronger financial health.
Payroll tax quickly emerged as the “elephant in the room” when Mr Janetzki addressed the Nambour Chamber of Commerce on September 3.
Nicklin MP and event sponsor Marty Hunt raised the issue before introducing the Treasurer, telling business owners it was one of the complaints he heard most frequently. “I know you all hate it and everyone brings it up with me,” Mr Hunt said.
While making clear there was no immediate announcement, Mr Janetzki said Premier David Crisafulli had already indicated payroll tax was an area the Government could examine once its finances improved. “The Premier has said once we get the Budget in shape, that is the time we can look at things like payroll tax,” Mr Janetzki said. “Small and family business is the heartbeat of our politics.”
When questioned again from the floor, the Treasurer acknowledged business concerns more directly. “We know it’s a tax on employment, on aspiration. I completely understand it,” he said. “Keep advocating, Chamber. Keep lobbying me. Keep lobbying Marty.”
Mr Janetzki said the Government was trying to balance calls for tax relief against the need to maintain revenue for health, education, infrastructure and other services.
He pointed to the 2026-27 Budget as the Government’s second consecutive budget containing no new or increased taxes.
The Budget forecasts a return to surplus in 2029-30. Mr Janetzki argued Queensland’s payroll tax settings were already competitive nationally and said taxation differences between states could influence where companies chose to establish their headquarters.
But a Chamber attendee questioned whether cutting payroll tax sooner could itself stimulate investment and help improve the State’s financial position.
Mr Janetzki agreed there was an argument for using taxation settings to encourage business expansion, but described it as “a delicate balance”.
“It’s the balance of preserving the State’s revenue base and maintaining that trajectory to surplus, but also getting the incentive right to come here,” he said.
Mr Janetzki said businesses needed confidence that governments would not unexpectedly change the rules after investments had been made.
“If you sign up to a set of rules at the outset, you invest your hard-earned capital, we’re not going to change the rules halfway through,” he said. “That is the State Government’s commitment.”