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 NSW Government pays a payroll tax rebate when new workers are employed in new eligible employment.
Roughly, the scheme can apply to employers who are registered for NSW payroll tax and have a constant increase in the number of full time employees between 1 July 2011 and 30 June 2019. The rebate was available in two equal annual installments, totaling $4,000 per employee, where a new job is created and employment is maintained for at least two years.
However due to a lower than anticipated take up, the NSW Government announced in the 2013 State Budget, the scheme has been expanded to be more attractive to potential eligible employers.
At first, 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. After the changes introduced on 1 July 2013, the maximum rebate is $2,000 on the first anniversary and $3,000 on the second anniversary.
Registration for the scheme can be made at any time until 30 June 2019. One of the key criteria that remains is that the employer must register within 30 days of the commencement of employment for which the application relates to first commences.
Some of the other criteria for eligibility for the rebate are as follows:
- A person is employed (full time, part-time or as casual) to a 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.
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.
From 23 November 2015, late registrations will only be accepted, without justification, if made within 90 days of the commencement of the new position.