Queensland Fruit & Vegetable Growers (QFVG) has thanked the Queensland Government for introducing a temporary payroll tax amnesty for certain regional employers, but says a full review of the Regional Employer Payroll Tax Discount is still needed to address the underlying issues facing regional businesses.
Announced on 11 November, the amnesty provides a pathway for eligible employers to have certain seasonal workers and employees temporarily residing in regional Queensland recognised as regional employees for the purposes of the discount.
QFVG CEO Scott Kompo-Harms said the decision was a welcome step towards addressing retrospective payroll tax liabilities faced by some regional employers who had claimed the discount in good faith.
“We thank the Government for recognising the difficulties some regional employers have faced in interpreting the rules, particularly around seasonal and temporary workers,” Mr Kompo-Harms said.
“The amnesty will provide some relief for eligible businesses, and we acknowledge the Government's willingness to respond to the concerns raised by growers.
“However, this is a temporary measure. While it addresses some of the immediate financial pressures, it doesn't fix the underlying eligibility rules that have created difficulties for regional businesses in the first place.
“We need to address the root cause, not just the symptoms.”
Mr Kompo-Harms said QFVG had written to the Treasurer seeking a full review of the Regional Employer Payroll Tax Discount to ensure it better reflected the realities of regional employment and business operations.
“This is about making sure the discount recognises where work is actually being done and the contribution regional businesses make to their local economies,” he said.
“Under the current settings, eligibility is heavily influenced by an employee's principal place of residence, rather than where they work. That can create particular challenges for horticultural businesses that rely on seasonal, mobile and temporary workforces.
“We want to see the Government examine whether the rules around employee eligibility, the 85 percent regional wages threshold, regional boundaries and an employer's principal place of business are fit for purpose.
“Ultimately, the discount needs to recognise the economic contribution of businesses operating in regional Queensland, rather than penalise them because of the way their workforce is structured.”
QFVG is also seeking greater transparency around the Queensland Revenue Office's use of data analytics and automated risk flags to identify potential non-compliance, including clear opportunities for employers to understand and respond to concerns before reassessments are issued.
“Automated tools may have a role in identifying matters for review, but they should not replace individual assessment and human judgement. Employers need to understand how decisions are being made and have a fair opportunity to respond.”
Mr Kompo-Harms said the amnesty demonstrated the value of growers speaking up and sharing their experiences.
“QFVG has been raising these concerns with Government, but it has been the direct experiences of growers that have helped bring the issue into focus.
“We appreciate the Government taking this step. Now we need to keep working towards a fairer and more practical system that properly recognises regional employment and supports the businesses growing Queensland's food.”
