Changes to the Jobs Action Plan and the Small Business Grant are providing incentives for NSW businesses to up their employee count. Companies that are liable for payroll tax can earn up to $6000 for every new employee, and those that aren’t liable for payroll tax can earn up to $2000 per employee.
Jobs Action Plan
The Jobs Action Plan (JAP) provides eligible NSW businesses with a payroll tax rebate when they employ new works in new eligible employment.
The most recent changes to the JAP are effective from 31 July 2016. New jobs commencing on or after this date will only be eligible for the rebate if the employer’s full-time employee number, prior to the new job, is at or below 50.
The total rebate amount per new job has increased to $6,000. New jobs will receive a rebate of $2,000 payable on the first anniversary and $4,000 on the second anniversary.
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Small Business Grant
The Small Business Grant (SBG) applies to companies not liable for payroll tax. The grant amount is $2,000 payable for every full-time equivalent position as at the anniversary date.
Previously there have been instances where companies eligible for the SBG have become liable for payroll tax before the first anniversary commencement of the job. This meant that they were no longer eligible for the SBG and also not eligible for the JAP as they didn’t register that new job within 90 days of commencement.
Revenue NSW now accepts applications for the JAP in the situation described, provided the registered claimant had originally registered positions for the SBG and meets all other eligibility criteria for the SBG and JAP. The registered claimant will also have to register for payroll tax when they become liable or before the first anniversary of the new employee commencing.
For more info click here.