From 1 January 2023, there will be a mental health levy applied to payroll tax for employers and groups of employers in Queensland who pay more than $10 million in annual Australian taxable wages.
Funds collected from this mental health levy will fund mental
health and associated services for Queenslanders. Additional
reporting requirements will also apply for all employers.
The thresholds on the mental health levy will be based on annual Australian taxable wages, and will be applied in the following manner:
| Australian taxable wages (annual) From July 2023 onwards |
Levy rate (applied to Qld taxable wages exceeding the thresholds) |
| Up to $10 million | Nil |
| More than $10 million (primary threshold) | 0.25% (primary rate) |
| More than $100 million (additional threshold) | 0.25% (primary rate) + 0.5% (additional rate) |
Adjustments to the threshold may be applicable if you:
- are a member of a group
- pay interstate wages
- are only liable to the levy for part of the financial year
For the 2022-23 financial year, there will be a transitional period in which the following thresholds will temporarily apply for the six month period:
| Australian taxable wages (1 January to 30 June 2023) | Levy rate (applied to Qld taxable wages exceeding the thresholds) |
| Up to $5 million | Nil |
| More than $5 million (primary threshold) | 0.25% (primary rate) |
| More than $50 million (additional threshold) | 0.25% (primary rate) + 0.5% (additional rate) |
Additional reporting requirements will also apply for all employers (including those with an annual wage bill of less than $10 million) from 1 January 2023 for the mental health levy:
- For non-grouped employers with monthly lodgements, you will have to include your estimated Queensland and interstate taxable wages for 1 January to 30 June 2023;
- For non-grouped employers with half-yearly lodgements, you will not have a mental health levy lodgement requirement until the 2022-23 annual return;
- For all grouped employers, you will have to give your designated group employer (DGE) the estimated Queensland and interstate taxable wages for 1 January to 30 June 2023, and receive from your DGE the total group Queensland and interstate taxable wage estimates for 1 January to 30 June 2023, for reporting in the January 2023 period return;
- For group employers with monthly lodgements, in your January 2023 periodic return, you will have to include your wage estimates for 1 January to 30 June 2023. Your periodic levy liability will be calculated on these estimates;
- For group employers with half-yearly lodgements, you will not have a mental health levy lodgement requirement until the 2023-24 financial year when your July to December 2023 half-yearly return becomes due.
Your annual mental health levy liability will be reconciled in your annual return, based on your actual Queensland and interstate taxable wages for the financial year. However, if you are a group employer, you are not liable for the mental health levy in your annual return.
Your DGE will reconcile the mental health levy liability on behalf of the group in their return. The DGE is liable to pay any calculated liability or receive any refund where the group has overpaid throughout the year.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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