What the State Budget means for Toowoomba
The State Budget has delivered mixed results for the development industry across Queensland with new land tax imposts for companies and trusts alongside some payroll tax improvements and infrastructure investment.
Overall, the tax-free threshold for businesses having to pay payroll tax will increase from $1.1 million to $1.3 million.
In Toowoomba, the Institute welcomed infrastructure commitments including:
- New England Highway (Yarraman to Toowoomba) – $8.1 million in 2019-20 out of $9.3 million
- Yarranlea Substation – $3.6 million in 2019-20 out of $8.1 million
- Toowoomba Range capacity and clearance upgrades – $6.3 million in 2019-20 out of $77.3 million
- Toowoomba Escarpment Parks upgrades – $270,000 in 2019-20 out of $2.7 million
Notwithstanding these commitments, Institute CEO Kirsty Chessher-Brown said the Toowoomba Branch would continue its advocacy for long standing priority projects including those laid out at a recent meeting with Assistant Minister for Treasury, Glenn Butcher MP:
- Ongoing investment in the Railway Parklands PDA
- Funding for the New England Highway connection to the Second Range Crossing
In disappointing news, as reported in our State budget alert yesterday, companies and trusts face increased land tax rates.
The Government will increase land tax rates for companies and trusts by 0.25 cents for each dollar above $5 million from the 2019-20 assessment year raising an additional $238 million over the four years ending 2022-2023.
Overseas property investors and absentee landholders were also hit in yesterday’s budget.
The Government will increase the land tax absentee surcharge rate from 1.5% to 2.0% from 2019-20, raising $540 million over four years.
There is also a $1.32 billion stamp duty revenue shortfall over four years as cited in The Australian yesterday.
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