In a media statement earlier this month, Queensland’s Minister for Employment and Small Business, Shannon Fentiman, commented on the high-confidence in their prospects expressed by Queensland’s small and medium-sized enterprises (SMEs) in the August 2019 Sensis Business Index.
“Our State Budget has delivered for small and medium-sized businesses with the biggest reforms to payroll tax in over a decade – this is a budget that’s pro-business and the latest Sensis survey is a nod to our ongoing support for Queensland businesses,” Ms Fentiman said.
So, what can you do to take advantage of the Queensland Government’s support for SMEs to help manage growth and lower investment risk?
What’s in it for you?
The Queensland Government is supporting your SME by letting you keep more of what your SME generates by lowering payroll taxes, and through a range of business grants.
The Queensland Budget for 2019-20 includes a range of payroll tax reductions that will be in effect from July 2020:
- invoice payment times reduced from 30 days to 20 days
- the tax-free threshold for businesses increased from $1.1M to $1.3M
- payroll discount for regional businesses + payroll rebates for businesses hiring new employees.
It’s estimated that Australian businesses pay over $22 billion annually in payroll tax to the individual states. On average, wages in Australia represent around a third of an organisation’s operational costs – so any change to the rate of payroll tax can make a major impact on your bottom line.
Don’t skimp on compliance
One of the critical points in the business journey is when you start outgrowing your tools and processes: add some new starters here, some terminations there, a new award, expenses and timesheets – et voila! A compliance breach waiting to happen. A great place to start is our guide to Payroll Tax, which shows how you can minimise the burden of compliance.
Resources like Business.gov.au offer advice on how to fund your SME and invest in the right software to support your business functions. Also consider the Small Business Digital Grants Program (opens 11 November 2019) for payments of up to $10,000 for the purchase of hardware, software and services (such as digital coaching). The Small Business Digital Grants Program can help you work smarter, engage with the global economy and make the most of online business opportunities.
Plus, there are several grants on offer up to $50,000 to support small business in Queensland with coaching, advice, increasing digital capacity or the purchase of specialised equipment to achieve high-growth potential.
Complete our contact form if you’d like to talk to us about how you can use a small business grant to improve your business, and how a professional payroll solution can be one of the best businesses investments you can make.