Payroll tax relief a cashflow lifeline for Queensland horticulture growers

Queensland Fruit & Vegetable Growers (QFVG) is calling on the Queensland Government to introduce temporary payroll tax relief for primary producers in declared disaster zones, saying the measure would provide an immediate boost to farm cashflow and help growers recover faster.

QFVG CEO Scott Kompo-Harms said the organisation welcomed the speed at which disaster assistance had been activated in recent weeks, but said there was an opportunity to strengthen the system further with targeted payroll tax relief. 

“We want to acknowledge the Queensland Government for moving quickly to activate disaster assistance following the recent run of severe weather events,” Mr Kompo-Harms said. 

“Queensland is the most disaster-prone state in Australia. A responsive disaster recovery framework is critical for growers trying to get back on their feet.” 

Mr Kompo-Harms said with large parts of the state now disaster-declared following multiple weather events, many horticulture businesses were facing a challenging combination of crop losses, infrastructure damage, rising fuel costs, and ongoing labour expenses. 

“In these moments, cashflow becomes the single biggest factor determining how quickly a farm can recover,” he said. 

“That’s why payroll tax relief is such a practical solution. It’s a policy lever government already controls, and it can be implemented far more quickly than many other support mechanisms.” 

Payroll tax applies to businesses whose total Australian wages exceed $1.3 million annually – a threshold many medium-sized horticulture businesses reach due to seasonal labour requirements. 

QFVG is calling for targeted payroll tax relief for affected agricultural businesses, including a temporary 12-month exemption and a grower-declared three-month pause in obligations.

“Every dollar that stays in a grower’s business during recovery helps keep people employed, supports replanting and repairs, and reduces the need to take on additional debt just to get operations moving again,” Mr Kompo-Harms said. 

“This isn’t about special treatment. It’s about ensuring policy settings reflect the realities of farming and the unique challenges horticulture businesses face during disaster recovery.” 

Mr Kompo-Harms said Queensland had a strong track record of improving disaster assistance frameworks in response to industry feedback. 

“We’ve seen some very positive reforms in recent years, including changes to the definition of a primary producer under the Disaster Recovery Funding Arrangements and the recognition that replacing lost crops is a legitimate recovery cost,” he said. 

“These were practical improvements that made the system work better for growers.” 

“A targeted payroll tax exemption would be another sensible step that boosts confidence immediately and supports faster recovery across regional communities.” 

“With so many Queensland regions currently impacted by natural disasters, this is an opportunity to give growers the breathing room they need.” 

“Queensland growers show incredible grit, but resilience works best when it’s backed by policy settings that support recovery when disasters strike.”