Payroll tax relief: A lifeline for Queensland growers

At QFVG, our role is to ensure policy settings keep pace with the realities growers are facing on the ground. One issue we continue to hear growers speak about is payroll tax. 

Payroll tax applies to businesses whose total Australian wages exceed $1.3 million per year – a threshold easily reached by many medium-sized businesses with seasonal labour requirements. Once triggered, growers face an additional cost of up to 4.95 percent on wages, a cost they cannot pass on. 

Payroll tax doesn’t flex when disasters strike, and that is why QFVG, working closely with industry partners, is actively advocating for a targeted payroll tax reform for Queensland growers. 

We are calling for a 12-month payroll tax exemption for growers in declared disaster zones, recognising that recovery takes months, even years often spanning multiple seasons. We are also proposing a grower-declared three-month payroll tax pause, allowing businesses to stabilise cashflow during their most financially vulnerable period, without repayment requirements. Importantly, this support should be automatically triggered when a disaster is declared - ensuring relief arrives when it is actually needed. 

This is not about asking for special treatment. It is about aligning policy with the realities and complexities of horticulture. Every dollar not paid in payroll tax helps keep local workers employed, supports recovery, and allows growers to reinvest in their farms and communities. 

There is clear precedent. Queensland already exempts wages paid to apprentices and trainees, registered charities, and rural general practitioners. Temporary payroll tax relief was also provided during COVID-19, while JobKeeper payments were exempt altogether. These were pragmatic responses to genuine economic pressure. 

Targeted payroll tax relief would provide meaningful breathing room – helping retain skilled workers, avoid layoffs, and stabilise regional communities that rely heavily on farm employment.  

At QFVG, we will continue to stand alongside growers, taking their concerns directly to government and pushing for solutions that protect farm viability, regional jobs and food security. Supporting growers through payroll tax reform isn’t just good policy - it’s essential for the future of Queensland horticulture.