Businesses could be hit with more tax by trying to retain staff

Queensland businesses are set to be hit with payroll tax costs if they take up the Federal Government’s JobKeeper payment and it can’t happen said the Chamber of Commerce and Industry Queensland (CCIQ). 

The business sector is urging the Palaszczuk Government to do the right thing and exempt payroll tax from the JobKeeper payments so jobs can be saved.

CCIQ’s general manager of advocacy and policy, Amanda Rohan said there is only one option for the government to take here.

“Over the last few weeks there has been some good policies and decisions made to help businesses survive, but hitting businesses with payroll tax on payments which will enable them to keep their staff employed is ludicrous.

“Businesses have told us, that in some instances the JobKeeper payments may be more than their employees wages, causing some businesses to pay higher payroll tax than they usually would.

“This would be a direct disincentive for businesses not to take up the job saving, JobKeeper stimulus, causing further stress to employees and businesses alike.

“It could force employees who want to stay with their employer the unnecessary risk of going on the Centrelink JobSeeker program, which is in direct contrast to the Federal Government’s hibernation strategy.

“The Palaszczuk Government must provide Queensland businesses with the assurances they will not be hit with a payroll tax bill.

“They already offered that hope in their announced payroll relief package, which included two months ‘back payment’, three months freeze and six months deferral.

“We urge the government not to undo that good work, and put businesses at risk of racking up a bigger than normal bill after the freeze is lifted,” Ms Rohan said.