Tax drop touted to support Ipswich's small businesses
BUSINESSES will hire more staff and increase margins thanks to the State Government's $885m tax change, the employment minister has said during an Ipswich breakfast.
About 270 small and medium-sized businesses across Ipswich are expected to benefit from the government's budget announcement to increase the payroll tax threshold.
Minister for Employment and Small Business Shannon Fentiman told an Ipswich business breakfast yesterday morning the change would grow the economy.
"We know small and medium businesses are the engine room of our growing economy and we want to make sure they have the right support they need to grow and create more local jobs," she said.
"Payroll tax is the number one issue raised with me when I meet with small business owners."
Raising the exemption threshold from $1.1m to $1.3m means 1500 extra businesses won't pay payroll tax.
"We have also extended our 50 per cent payroll tax rebate for business taking on an apprentice or trainee and where Queensland employers have increased their number of full-time employees, they will be eligible for a payroll tax rebate for these additional employees," Ms Fentiman said.
Challenges remain, with Ipswich's 9000 small businesses facing difficult economic headwinds brewing on the horizon.
Despite state debt rising and mining revenue forecast to fall, Ms Fentiman said there was nothing to worry about.
"The economy nationally is facing some issues but here in Queensland we're determined to spend on public infrastructure," she said.
"Almost $50b in infrastructure spend drives the economy.
"Queensland I think is doing the heavy lifting despite some national headwinds that are making it hard."
She acknowledged difficulty facing businesses, particularly in the Ipswich CBD.
"We talked about this and I think the big thing the community can do is go local and buy local," she said.
"We talked about how the government could help with a buy Ipswich, go local campaign but really the community needs to rally around businesses our small businesses if they're doing it tough in parts of the city."