Payroll tax deferral boosts cash flow for mining companies and suppliers

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Image credit: www.qrc.org.au
Media Release

The Palaszczuk Government’s decision to allow all Queensland companies to defer payroll tax payments for six months, in response to novel coronavirus (COVID-19), will boost much needed cash flow to thousands of companies across the State.

Queensland Resources Council Chief Executive Ian Macfarlane said the payroll tax deferral will benefit mining companies and the sector’s 14,400 suppliers, who combined employ more than 372,000 Queenslanders or one in seven jobs.

Mr Macfarlane said mining companies paid a combined $6.1 billion – or almost $120 million every week – in wages last financial year, and they spent more than $22 billion with small-to-medium business suppliers.

“The Government’s deferral of payroll tax will benefit mining companies and thousands of those supplier companies across Queensland, whether they are in Moranbah in central Queensland, Morningside in Brisbane or Mount Isa,” Mr Macfarlane said.

“It will mean payroll tax payments would not be due until 31 July.”

“Our industry welcomes the Government’s efforts to support business in response to COVID-19. More measures will be needed. One of the most important forms of support will be the Government’s continued commitment to stability on royalties, taxes, fees and charges.”

“At uncertain times when confidence is low, it’s critical that the Government commits to stability, providing greater certainty and improve confidence.”

“In addition to $6.1 billion in wages, the mining companies contributed another $5 billion in royalties and other taxes to the Queensland Government.”

Information on payroll tax deferral can be found at www.osr.qld.gov.au

Deputy Premier and Treasurer Jackie Trad’s media statement referring to payroll tax and concessional loans http://statements.qld.gov.au/Statement/2020/3/17/palaszczuk-government-offers-500m-in-loans-to-support-workers-in-businesses-affected-by-coronavirus


Image Credit: www.qrc.org.au