As part of the NSW Government’s Jobs Action Plan, eligible NSW businesses can receive a payroll tax rebate when they employ new workers. This scheme has been in place for some time, however has recently been amended to increase the total rebate available from $4000 to $6000. Employers must be registered as an employer and paying payroll tax in NSW.
Eligibility Criteria
The requirements for the new position:
- A person is employed full-time, part-time or as a casual in a position that is a new job, i.e. your number of full-time equivalent (FTE) employees increases and that FTE is maintained over a 2 year period from the creation of the new position.
- The services of the position is wholly or mainly in NSW.
It need not be the same person employed in the role for the full 2 years. Employment is maintained if there is always a person employed in the position for which the rebate is being claimed. A vacancy of up to 30 days per year can be disregarded.
How Much is the Rebate?
The rebate is paid on the first and second anniversary of employment. The first anniversary rebate is up to $2,000, and the second anniversary rebate ranges from up to $2,000 to $4,000 depending on the date that the new job commenced.
- Job start date July 2011- June 2013: $2000 + $2000
- Job start date July 2013 – July 2016: $2000 + $3000
- Job start date 31 July 2016 onwards: $2000 + $4000
In the case of part-time employees the rebate is adjusted according to the number of hours worked.
If the increase in FTE is not maintained for the second year, businesses will not be required to repay the rebate for the first year.
How Can Businesses Register and Apply?
You are firstly required to register the employment of a person in a new job within 90 days of the employment starting. Register online through the Rebate Scheme (Jobs Action Plan).
You can then apply for the rebate within 30 days after the first and/or second anniversary date of employment.
For more advice on this or other business matters, please give us a call on (02) 9908 9888.