Customers are the focus
To drive economic and jobs growth, and help fund services for Queenslanders, Treasury administers a revenue base of around $16.9 billion by delivering and administering simple, efficient and equitable revenue management services for state taxes and royalty revenue. Additional responsibilities include revenue compliance, grant schemes, and debt recovery and enforcement activities for the state.
Treasury, through the Office of State Revenue (OSR), fulfils its revenue responsibilities by:
- adopting leading e-business practices with high-level client support, and firm and fair enforcement
- providing legislation and revenue policy advice to government
- progressing online tools and services to support innovative business practices
- developing and implementing targeted, fair and efficient debt enforcement strategies
- leading end-to-end penalty debt management improvements through collaborative stakeholder engagement using business intelligence and behavioural insights to inform debt recovery.
Key issues in our environment
Queensland’s economic growth in 2019–20 is forecast to be 3 per cent. This growth is underpinned by increased GST revenue from the Australian Government, as well as royalties. However, royalty revenue from coal is forecast to decline gradually over the two years to 2021–22. Revenue from taxation is expected to increase at an average rate of 5.8 per cent over the four years to 2022–23:
- A slight reduction in transfer duty revenue is expected in 2019–20, driven by a decline in the volume of residential property transactions over the first half of 2018–19. This revenue is forecast to then increase over the three years to 2022–23.
- New land tax measures in the 2019–20 Queensland Budget are expected to increase land tax revenue during the year, and include:
- higher land tax rates for companies and trustees with aggregated landholdings over $5 million
- an increase in the surcharge rate for absentee landowners a new surcharge for foreign companies and trustees from 1 July 2019.
- Payroll tax revenue is expected to grow in 2019–20 driven by wage and employment growth, along with the increased payroll tax rate for employers with annual taxable wages above $6.5 million (from 1 July 2019). This is forecast to more than offset reduced revenue from budget initiatives of:
- an increased payroll tax exemption threshold to $1.3 million in annual taxable wages. This will mean 1,500 Queensland businesses will no longer have to pay this tax.
- a discounted payroll tax rate for regional employers
- a rebate for employers that demonstrate a net increase in full-time employees
- an extension of the apprentices and trainees rebate.
Royalty revenue is expected to grow in 2019–20 largely driven by increased petroleum royalty rates from 2019–20 onwards along with the increased royalty revenue from base and precious metals, which is expected to more than offset a decline in royalty revenue from coal. Total royalty revenue is expected to decrease in 2020–21 in line with coal prices gradually declining to medium-term levels by early 2021.