The Jobs Action Plan provides eligible NSW businesses with a payroll tax rebate when they employ new workers in new eligible employment. Starting 31st July 2016, the total rebate amount per new job increased to $6,000 this is made up of $2,000 in the first anniversary, and $4,000 in the second.
When does the scheme end?
The rebate is available for eligible jobs commencing on or before 1 July 2019.
Note: a registration for a new job must be made within 90 days of the job commencement date.
The employment of a person is included in the rebate scheme if the employment meets all of the following conditions:
- A person is employed, full-time, part-time or on a casual basis, in a position that is a new job.
- The employment commences on or after 1 July 2011.
- The employment is maintained for a period of at least 2 years, to be eligible for the full rebate.
- The services of the employee are performed wholly or mainly in NSW.
What is a new job?
A new job is created if the number of your Full-Time Equivalent (FTE) employees increases and that FTE is maintained over a 2 year period from the creation of the new position. However if employment is only maintained for the first year then the rebate will only be paid for that year.
Are there any conditions for the payment of the rebate?
There are certain conditions that apply to the payment of the rebate, including:
- you must be registered as an employer and paying payroll tax in NSW. From 23 November 2015, late registrations for the Jobs Action Plan will only be accepted, without justification, if made within 90 days of the commencement of the new position.
- the maximum amount of rebate payable will be determined by the amount of the employer’s net payroll tax liability for the financial year in which the claim for the rebate is made.
- for part time employees, the rebate will be pro-rated based on FTE hours of employment
- if the increase in the FTE is not maintained for the second year, you will not be required to repay the rebate for the first year of employment.
The employment of a person by an employer is excluded from the rebate scheme if:
- on or after 31 July 2016—the number of full time equivalent employees of the employer (excluding the person) is more than 50 on the date on which the employment commences.
- the person was employed by the employer claiming the rebate in the previous 12 months
- any wages paid by the employer to the person are not taxable wages (that is, the wages must be subject to NSW payroll tax under the nexus provisions)
- the employer is entitled to a rebate under the Payroll Tax Act 2007 (that is, apprentice/trainee rebate)
- a rebate, subsidy or other assistance is payable to the employer for the employment of the person by the State
- the employer is taken to be the employer of the person under the contracting provisions or employment agency provisions of the Payroll Tax Act 2007
- the employer is the Crown in right of NSW or in any of its other capacities
- the employer is a public, local or municipal body or authority.
Internally transferred employees
On 19 November 2014, amendments were made to the Jobs Action Plan Rebate Scheme.
Provided that the former employer was eligible for the rebate, new employers will remain eligible if:
- an employee is transferred between employers within the same group
- an employee is transferred to a new employer as a result of a merger, take over or acquisition
- the former employer had registered an online application for that position
- the position is registered within 90 days of the transfer date.
Minimum employment period
To receive the Jobs Action Plan rebate, the minimum employment for the new job is 2 years starting on the date the employment is commenced.
Does the same person need to stay in the new role for the business to receive the rebate?
Employment is maintained if there is always a person employed in the position for which the rebate is claimed.
A vacancy in a position can be disregarded if the number of days vacant does not exceed a total of 30 days in each year of employment for which the rebate is claimed.
The rebate may still be paid after 30 days of vacancy, if the Chief Commissioner is satisfied the length of the vacancy is beyond the employer’s control. In this case the rebate will be paid on a pro-rata basis.
How do I register and apply for the rebate?
You are required to register the employment of a person in a position that is a new job and advise us of the number of Full-time Equivalent (FTE) employees immediately before the position was filled.
Registration for the scheme can be made:
- through the Rebate Scheme (Jobs Action Plan) online registration
- by an employer who is registered for and paying payroll tax
- within 90 days after the employment commences.
You can apply:
- through the Rebate Scheme (Jobs Action Plan) online claim
- by submitting an application for the payment of the rebate in respect of the employment of a person.
Want to assistance with Government Grants to grow your business?
Working with Treadstone means you get the maximum rebate with minimum risk and effort. We provide expert advice and take care of your application, allowing you to continue to focus on your essential business operations.
Treadstone is an experienced, outcome focused team with a proven track record of success since 2008; recently securing three $1m+ grants for our clients.
To ensure you have the best chance of getting grant funding contact us or call (02) 8378 2520.