$10 billion hit looming for Qld economy
BUSINESSES have called for a payroll tax holiday to allow the state’s employers to pump $700 million into jobs amid revelations the Queensland economy will bleed $10 billion over the next two years.
Deputy Premier and Treasurer Jackie Trad revealed the new eye-watering figure based on the Government’s estimate that one in four Queenslanders will be infected, with $3.4 billion of that to be carved out before June 30.
It came as Ms Trad was unable to guarantee the public servants’ defined benefits superannuation won’t need to be topped up from government coffers as markets tanked across the globe.
“Three weeks ago, Queensland Treasury modelled the impact at $900 million to $1.7 billion to the Queensland economy this financial year, and $2.5 billion over three years,” Ms Trad said.
“Queensland Treasury have updated their economic forecast based on Queensland Health’s local contagion attack rate of 25 per cent and now anticipate the impact to the Queensland economy to be $3.4 billion this financial year and likely $10 billion over the two financial years.
The shock figure saw Queensland’s peak business body CCIQ call for a sixmonth payroll tax freeze to help protect 580,000 jobs. CCIQ’S general manager of advocacy and policy Amanda Rohan said while an announced deferral did provide immediate relief, it didn’t go far enough.
“The current crisis means business need further relief to the direct cash flow pressures they are facing,” Ms Rohan said. “Implementing a payroll tax freeze for businesses with wages of up to $5 million will save 9477 Queensland businesses between $472 million and $696 million and support 580,000 Queensland jobs.”
Meanwhile, Ms Trad sought to smooth fears around public service superannuation following suggestions by Opposition deputy leader Tim Mander that Labor’s defined benefits raid to pay down debt could put the scheme at risk.
“Queenslanders who have defined benefits accounts with the Queensland Government, investments through QIC, are fully protected by Queensland law,” Ms Trad said.