Competitive Business Conditions
  • Last updated:
  • 10 Aug 2018

The Sunshine Coast's low business costs make the region a highly cost-effective place to operate. The region boasts Australia's lowest payroll tax environment as well as numerous operating costs that are lower than state averages in Queensland, New South Wales and Victoria.

Payroll tax

Queensland has the lowest payroll tax rate of any state or territory in Australia which affords a competitive advantage to investing in a business on the Sunshine Coast.  Additionally, Queensland has one of the highest payroll tax thresholds at A$1.1 million, which means that no payroll tax is due for wages and salaries below this level.

In 2016-17, it was estimated that an overall taxation in Queensland was A$766 per person less than the average of all other Australia states and territories. (Queensland Government, June 2016).

State or Territory  Basic Flat Tax Rate (%) Exemption Threshold
Queensland
(including Sunshine Coast)
4.75 A$1,100,000
Victoria 4.85  A$625,000
South Australia 4.95 A$1,500,000
New South Wales 5.45 A$750,000
Western Australia 5.5 A$850,000
Northern Territory 5.5 A$1,500,000
Tasmania 6.1 A$1,250,000
Australian Capital Territory 6.85 A$1,185,000
National average 5.49  
Difference to Sunshine Coast 0.74  

Notes: For annual payroll thresholds between A$600,000 and A$1.5 million, South Australian payroll tax rates are variable between 2.5% and 4.95% 

Source: Payroll Tax Australia (2018)

Indicative Industrial Land Values (3,000 - 5,000m2)

Industrial land costs per square metre on the Sunshine Coast are, on average, 51% lower than Brisbane, 71% lower than Sydney and 61% lower than Melbourne.

Sunshine Coast  A$150/m2 
Brisbane A$308/m2
Melbourne* A$382/m2
Sydney* A$525/m2

Source: Savills, September 2016
* Median price for CBD and outer suburbs

Commercial Office Rental (A Grade Costs)

Office rent costs on the Sunshine Coast on average, are almost 40% lower than Brisbane CBD costs, 62% lower than Sydney and 42% lower than Melbourne.

Locality  Mid-point (A$/sm2)
Sunshine Coast A$390
Gold Coast A$422
Brisbane CBD A$650
Melbourne CBD A$670
Sydney CBD A$1,025

Source: Savills, 2016

Operating Costs

The Sunshine Coast offers businesses lower operating costs against many competing locations. Additionally, work compensation insurance premiums are lower in Queensland than other states such as New South Wales and Victoria, providing additional cost savings.

Location  Median Weekly
Personal Income
Workcover Premium Cost
Per $100 in Wages
Sunshine Coast  A$615 A$1.20
QLD A660 A$1.20
NSW A$664 A$1.40
VIC A$644 A$1.27

Source: Worksafe QLD (2018); Worksafe VIC (2018); Milne Alexander (2017)