- Last updated:
- 29 Oct 2020
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 and provides 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$650,000 |
| South Australia | 4.95 | A$1,500,000 |
| New South Wales | 5.45 | A$850,000 |
| 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$2,000,000 |
| National average | 5.49 | |
| Difference to Sunshine Coast | 0.74 |
Notes: For annual payroll thresholds between A$1.5 million and A$1.7 million, South Australian payroll tax rates are variable between 0% and 4.95%. For annual payroll thresholds between A$1.25 million and A$2 million, Tasmanian payroll tax rates are 4.00%. Source: Payroll Tax Australia (2019)
Source: Payroll Tax Australia (2019)
Indicative industrial land values (3,000 - 5,000m2)
| Sunshine Coast | A$142/m2 | |
| Brisbane | A$347/m2 | Average 59% lower |
| Melbourne* | A$557/m2 | Average 75% lower |
| Sydney* | A$896/m2 | Average 84% lower |
Source: Savills, February 2019
* Median price for CBD and outer suburbs
Commercial office rental (A grade costs)
| Locality | Mid-point (A$/sm2) | Average Comparison |
|---|---|---|
| Sunshine Coast | A$330 | |
| Gold Coast | A$350 | |
| Brisbane CBD | A$540 | 40% lower |
| Melbourne CBD | A$575 | 43% lower |
| Sydney CBD | A$1,090 | 70% lower |
Source: Savills, January 2019
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 | A$660 | A$1.20 |
| NSW | A$664 | A$1.40 |
| VIC | A$644 | A$1.27 |