NSW Payroll Tax Rebate – The Jobs Action Plan

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16
Nov

NSW Payroll Tax Rebate – The Jobs Action Plan

16.11.15

In 2011 the NSW Government introduced the Jobs Action Plan as an incentive for employers who create new jobs in NSW.  Under the scheme, the Government pays a rebate of the employer’s payroll tax up to $5,000 per employee.

 

Broadly, the scheme can apply to employers who are registered for NSW payroll tax and have a sustained increase in the number of full time equivalent employees between 1 July 2011 and 30 June 2019. The rebate is paid on the first two anniversaries of the relevant employee’s employment provided they remain employed by the organisation during that time.

 

For employees engaged between 1 July 2011 and 30 June 2013 a maximum rebate of $2,000 is paid on each of the two anniversaries, and for employees engaged after 1 July 2013 the maximum rebate is $2,000 on the first anniversary and $3,000 on the second anniversary.

 

Some of the key criteria for eligibility for the rebate are as follows:

  • A person is employed, full time, part-time or on a casual position that is a new job (i.e. not replacing a previous employee);
  • The employment commences on or after 1 July 2011;
  • The employment is maintained for a period of at least two years to be eligible for the full rebate;
  • The services of the employee are performed wholly or mainly in NSW.

 

Registration for the scheme can be made at any time until 30 June 2019 however, the relevant new employee’s role needs to be logged within 30 days of the commencement of employment. According, ongoing use of the scheme may be onerous and systems should be put in place to review claims as part of the ordinary monthly payroll tax process.

 

As previously highlighted, the OSR have allowed late registrations outside of the 30 day window.  Unfortunately this concession ceases on 23 November 2015.  This provides an opportunity to gain access to the rebate on a retrospective basis should you have had a sustained increase to the level of full time equivalent employees over the period.

 

ESV is able to review your circumstances to determine eligibility and assist registering for the rebate if it is available in your circumstances. Should you have any queries on this, please do not hesitate to contact your ESV Partner on 9283 1666.

 

Article by Geoff Tierney