News & Advocacy

Members were invited to take part in a roundtable with the Hon. Steve Minnikin, Minister for Small & Family Business on 22nd May 2026. A number of important topics were discussed including: Payroll Tax  Participants raised significant concerns about the ongoing burden of payroll tax  on small and medium businesses.  The Minister noted that removing payroll tax would leave a $6B revenue gap, prompting discussion about alternative revenue models.  Members emphasised that payroll tax continues to be a major inhibitor to growth, hiring, and regional competitiveness.  Regional Payroll Tax Discounts Ending in 2030   Members expressed strong concern about the scheduled end of regional payroll tax discounts.  Many operators rely on this concession to offset higher operating costs in regional Queensland.  The group highlighted that  backpackers are not counted as regional employees, despite being essential to hospitality and tourism businesses. This exclusion reduces the effectiveness of the concession for industries that depend heavily on seasonal and transient labour.  Duplication of Reporting Requirements   Members discussed the duplication of government reporting, particularly:  Businesses already provide detailed payroll and employment data through Single Touch Payroll (STP) to the ATO.  Despite this, the Queensland Government requires additional state-level lodgments, creating unnecessary administrative burden.  Participants questioned why  state and federal governments cannot share data, reducing duplication and compliance costs.  Insurance Costs and Reinsurance Pool   One member reported a  404% increase in insurance premiums, despite the introduction of the  Northern Australia Reinsurance Pool.  Businesses noted that the pool has  not yet delivered meaningful reductions in premiums for individual operators (although it has reduced premiums for many body corporates).   Insurance affordability remains a critical threat to business viability in North Queensland.  Cost of Doing Business   There was broad agreement that the  overall cost of doing business has escalated sharply, compressing profit margins. Key pressures include:  Energy costs  Insurance  Compliance  Freight  Labour shortages  One member highlighted the  high cost of freight, noting that fresh produce grown in North Queensland is transported to SEQ for processing and then returned north, resulting in a 16% higher cost  compared to SEQ-based businesses.  Workforce Attraction & Retention   Workforce shortages were a universal concern  across all industries represented.  Businesses are struggling to attract and retain staff in a competitive labour market.  Housing affordability and Townsville’s  very low rental vacancy rate  were identified as major barriers to workforce attraction.  Employment Legislation & Termination Processes   Members raised concerns about the  complexity and rigidity of termination laws.  Employers reported that removing toxic or non-performing employees requires a lengthy and costly process .  One example involved an employee who signed a contract but  never showed up for work.  The business was unable to replace the employee for  three months  due to procedural requirements, despite the employee never commencing duties.  Participants argued that current legislation does not reflect the realities of small business operations.  Three Levels of Government & Duplication   A broader discussion emerged about whether Australia requires three levels of government, given the significant duplication across departments.  Members questioned the efficiency of overlapping responsibilities and the administrative burden placed on businesses.  Apprenticeship Sign-Off Requirements   Concerns were raised about who is authorised to sign off apprentices, with inconsistencies and delays affecting workforce development and training pipelines.  Definition of a Small Business   Participants discussed whether the definition of a small business should be reconsidered. Chamber welcomes the honest feedback provided to the Minister from our Members on the realities of doing business in Townsville in 2026.  

The Townsville Chamber strongly supports the continuation of quarterly meetings between Chamber and the Mayor of Townsville. Maintaining a consistent and constructive dialogue with key stakeholders such as Townsville City Council is essential to advancing the economic and social prosperity of our region. Emma Peters, Chamber CEO met with Mayor Dametto in early May in the first of quarterly meetings.  These meetings provide an important forum to address shared priorities, including tackling workforce shortages, driving the revitalisation of our CBD, and ensuring local businesses have the support they need to grow and thrive. We look forward to strengthening this partnership and continuing to advocate for the interests of our members and the broader Townsville business community.

Townsville’s business community had the opportunity to speak directly with the Queensland Treasurer, Hon David Janetzki, at a recent Chamber roundtable, alongside Members for Hinchinbrook, Thuringowa and Mundingburra. The discussion focused on the real pressures facing local businesses, including workforce shortages, the housing crisis, insurance costs, stamp duty, and the growing impact of payroll tax. What Was Discussed Chamber members shared firsthand insights into the challenges affecting day-to-day operations and long-term growth. Key issues raised included: Attracting and retaining staff in a tight labour market The ongoing housing crisis impacting workforce availability Rising insurance and operational costs The increasing burden of payroll tax on local employers The Treasurer expressed strong interest in understanding the scale of these challenges across the region, particularly the impact of payroll tax. Why This Matters Ensuring regional voices are heard at all levels of government is a core part of the Chamber’s advocacy work. Open and constructive conversations like this roundtable are essential to shaping policies that reflect the realities faced by North Queensland businesses. Townsville Chamber CEO, Emma Peters, said the discussion was a valuable opportunity for local businesses to raise key concerns directly: “Today’s roundtable was a valuable chance for Townsville businesses to speak directly with the Treasurer about real pressures like workforce shortages, the housing crisis and payroll tax. Ensuring regional businesses are heard is core to our mission.” Chamber Member Michelle Arnold from Townsville Helicopters added: “It was great to speak directly with the Treasurer about the challenges we’re facing, especially the impact of payroll tax on growth and staffing. We appreciate the Chamber creating a forum where local businesses can share their experiences and help shape better policy for Townsville.” Have Your Say: Payroll Tax Survey To support ongoing advocacy efforts, the Chamber has launched a business survey to capture real-world data on how payroll tax is impacting local businesses. This feedback will help strengthen the case for change and ensure Townsville businesses are clearly represented in statewide discussions. 👉 Complete the survey here

Following calls from the Townsville Chamber of Commerce, we welcome the Prime Minister’s announcement of a temporary excise reduction, which will see 26.3 cents per litre taken off fuel prices at the bowser. The decision to also reduce the heavy vehicle road user charge to zero for three months provides meaningful relief to the transport and logistics sector at a time of sharply rising operating costs. For a regional economy like Townsville, where freight costs are consistently among the highest pressures faced by local businesses, these measures offer welcome support. Whilst these measures are welcomed, the Chamber calls on the Government to provide the ACCC with additional powers to ensure that the full savings are passed on to consumers. The Chamber also notes the Queensland Government’s commitment to easing energy costs through the Crisafulli Government’s Energy Roadmap. Energy affordability remains a critical issue for small and medium enterprises across North Queensland, and steps that help stabilise or reduce power bills are strongly supported by the Townsville Chamber. While these initiatives are encouraging, all levels of government must remain attentive to the broader economic environment. Many small businesses in Townsville are operating on extremely tight margins, navigating persistent labour shortages, and managing ongoing cost of doing business pressures. Temporary relief is valuable, but long-term policy certainty and a continued focus on competitiveness, productivity, and workforce capacity will be essential to sustaining regional economic growth. Townsville Chamber President, Kevin Booth said: “Townsville businesses will welcome the Prime Minister’s decision to reduce the fuel excise by 26.3 cents per litre and temporarily remove the heavy vehicle road user charge. Our region is disproportionately affected by high freight costs, and any measure that eases that burden provides immediate and meaningful relief to local operators. These steps recognise the pressures facing regional economies like ours, where transport costs flow directly into the price of doing business.” Townsville Chamber CEO, Emma Peters added: “Members are telling us that any relief on fuel, freight and energy costs is welcomed, because these pressures have been biting hard across every sector in Townsville. Businesses are seeing their operating costs rise faster than their ability to pass them on, and many are working with extremely tight margins while still trying to retain staff and meet growing demand.” The Chamber looks forward to ongoing collaboration with government to ensure Townsville businesses remain resilient and well positioned during this unsettled economic period. For further information or interviews, please contact Emma Peters, CEO on 0407 796 858 or email: ceo@townsvillechamber.com.au