Regional Payroll Tax Discount is failing Queensland horticulture
Queensland horticulture growers are being asked to take direct action by writing to their local Member of Parliament calling for an urgent review of the Payroll Tax Discount for Regional Employers.
The issues
We have consistently heard the same concerns from members and have raised these issues directly with the Queensland Government.
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The Payroll Tax Discount for Regional Employers uses ABS Statistical Area Level 4 (SA4) boundaries to determine eligibility.
In practice, these boundaries do not always reflect how regional Queensland operates.
Horticulture businesses can operate in areas that are widely recognised as regional but are not considered “regional” under the scheme
Areas such as the Lockyer Valley and Toowoomba are examples where growers face a disconnect between their farming location and the scheme’s definition of regional
Neighbouring farms growing the same crops, employing the same types of workers, and competing in the same markets can face different payroll tax outcomes based only on geographic boundaries
For growers, this creates uncertainty and inequity in how the scheme is applied.
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Horticulture is one of Queensland’s most labour-intensive industries.
The current scheme assesses eligibility using the employer’s principal business address and the proportion of wages paid to employees located in regional Queensland.
This approach does not reflect how horticulture businesses actually operate.
Horticulture businesses routinely operate across multiple farms, regions, and production sites
Workforces are highly seasonal, mobile, and often move between regions depending on production cycles
Employees may be engaged in regional work even where their “principal place of residence” does not align with the location of employment
The result is a system that does not properly recognise how horticulture employment works on the ground, creating a disconnect between policy design and agricultural reality.
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QFVG is concerned about the compliance approach being applied by the Queensland Revenue Office (QRO), particularly where growers have made genuine mistakes.
QFVG has been made aware of cases where growers who believed they were correctly classified as regional employers have later faced:
Retrospective reassessments
Large backdated payroll tax liabilities
Significant interest charges
Aggressive debt recovery timelines
At a time when growers are already facing rising fuel, fertiliser, freight and labour costs, unexpected retrospective liabilities place additional pressure on farm viability.
QFVG is calling all growers to support a coordinated push for change.
We are asking the Queensland Government to:
Review the Regional Employer Payroll Tax Discount settings to ensure they reflect the realities of regional agricultural businesses;
Provide greater certainty and clarity for growers regarding eligibility requirements;
Consider the impact of payroll tax settings on food production costs and regional employment; and
Ensure government policies support the long-term viability of Queensland’s horticulture industry.
Send a letter to your local MP
QFVG is calling on all growers to write directly to their local Member of Parliament. We’ve prepared a letter you can download, personalise, and send today.
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