Question – Qantas Payroll Tax Agreement

Questions asked by the Hon Meg Webb MLC on 11 August 2022 and answered by the Deputy Premier and Treasurer on August 2022

QUESTION:

Noting the Government’s $1 million payroll tax reimbursement to Qantas Airways, under an agreement which is due to end in 2024-25, can the Government advise:

a) Whether there are plans to renegotiate or extend the agreement with Qantas beyond 2024-25?

b) If no extension to the agreement is anticipated, what planning is the government undertaking to mitigate against the risk that those Tasmanian-based Qantas jobs may become insecure at the end of this arrangement in 2024-25?

ANSWER:

The State entered into an agreement with Qantas Airways Ltd over 10 years from 2014-15 that entitled Qantas to payroll tax relief on wages paid to employees employed at its Hobart Contact Centre.

The Agreement was conditional on Qantas consolidating all of its Australian contact centre operations, used for the purpose of customer bookings and/or changing flights, at its Hobart Contact Centre by no later than 31 December 2016.

The Agreement allowed for the upgrade of the contact centre and secured local jobs with 298 full time equivalent employees working at the Hobart Contact Centre as at 31 December 2016.

For the nine months to 31 March 2022, the number of employees working at the Qantas Hobart Contact Centre averaged 108 full time equivalents.

No extension to the agreement has been negotiated at this time, with the final reimbursement  scheduled to be made in 2024-25.

See more of Meg’s Questions to Parliament.