Up to $4,000 in payroll tax rebates available for each new job created in your workforce

Are you aware of the ‘NSW Payroll Tax Rebate’ and do you know how to access it? We’ve prepared this short overview to ensure you know whether you qualify for this important helping hand of up to $4,000 in payroll tax rebates for each new job created in your business. 

The NSW Payroll Tax Rebate Scheme (Jobs Action Plan) is designed to give businesses an incentive to create new jobs and employ new workers.

For businesses that maintain an increased number of full-time equivalent employees for at least two years, up to $4,000 in payroll tax rebates can be accessed for employees in positions that are new jobs.

Key eligibility requirements include:

  • The new jobs must result in a sustained increase in full-time equivalent employees for a period of at least two years.
  • The employment services of eligible employees must be performed wholly or mainly in NSW.
  • The scheme can be accessed for new positions that commenced after 1 July 2011, and is available for the first 100,000 registered new jobs created across all of NSW up to 30 June 2013.
  • Other conditions apply.

Exclusions:

  • The employment of a person by an employer is excluded from the rebate scheme if:
    • The person was employed by the employer or a group member in the previous 12 months;
    • The person’s employment is a continuation of employment with another employer, such as from a business acquisition;
    • The employer already receives a rebate in respect of the employees wages, such as an apprentice or trainee rebate; or
    • The person is a contractor.
    • Other exclusions apply.

Benefit:

  • The benefit is provided by way of a rebate spread over two years.  The rebate should be the lesser of $4,000 per full-time equivalent employee registered for the scheme, and the net payroll tax liability for the financial year in which the claim is lodged.

Registering for the Scheme:

  • Generally registering the employment of an eligible employee should be made within 30 days of the employment commencing.  However, the OSR have indicated to us that there is flexibility around this time period given a significant amount of positions are still available.
  • Registration for the scheme can be done online or via paper form.

Claiming the Rebate:

  • The rebate is payable over two years. Claims for each eligible employee should be made within 30 days after the anniversary of the first year of employment and the second year of employment.
  • If at any time before the second anniversary of employment, the registered new position is not maintained, the employer will be required to repay any rebate received in respect of that position.

If you believe you may be eligible for the Payroll Tax Rebate Scheme (Jobs Action Plan) or would like more information in regards to the scheme, please contact Michael Griffiths or your Prosperity Adviser.

About Michael Griffiths

Michael is a Director in the Business Services and Taxation division and has over 25 years experience in Chartered Accounting and business advisory services.

Prior to joining Prosperity, Michael was a Director in the Business Services and Tax division of one of the 'Big 4' accounting firms.

Michael is commercially focused with strong communication skills. He provides advice and services to clients across a range of industries including manufacturing, property and construction, wholesale, retail, health, agriculture and professional services.

His areas of expertise include transaction structuring and support, business structuring and valuations, taxation advice, superannuation funds, trust account external examinations and finance applications.

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