Roundtable with Hon. Steve Minnikin

Posted: 28 May 2026

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Roundtable with Hon. Steve Minnikin
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.  
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