NSW Payroll Tax Rebate Scheme (Jobs Action Plan)

The NSW Office of State Revenue (OSR) Rebate Scheme intends to give businesses incentive to expand their enterprises and employ new workers, with a view to creating 100,000 new jobs in NSW from July 2011.

Under the plan, businesses that increase the number of full-time equivalent (FTE) employees in a ‘new job’ for at least two (2) years will receive a payroll tax rebate of $4,000 per FTE over the two years.

The rebate is payable in 2 payments of up to $2,000 on the first and second annual anniversary of the commencement of employment.

Registering for the scheme
Employers are required to register and advise the number of FTE employees immediately before the position was filled within 30 days after the employment to which the application relates first commences.

When to claim
- employers must claim the rebate within 30 days of the first and second anniversary of the employment of the new employee.

Non-refundable
- the amount of rebate payable cannot exceed the employer’s net payroll tax liability for the tax year ending in the year in which the claim is lodged.

‘New Job’
- is one that results in a sustained increase in the employer’s FTE employees over the two years and does not fall below that FTE level for more than 30 days any time during the year.

Part-time employees
- For part-time employees, FTE is calculated based on hours worked as compared with full-time employees.

Location
- The employee’s work must be performed wholly or mainly in NSW.

Excluded employment includes where:
- employed by the same employer or a group member in the previous 12 months, or
- a continuation of employment (e.g. merger or acquisition), or
- any wages are not taxable wages (i.e. must be subject to NSW payroll tax), or
- the employer is entitled to a payroll tax rebate (i.e. apprentice/trainee rebate), or
- a rebate, subsidy or other assistance is payable to the employer by the State, or
- employment is deemed due to the contracting / agency payroll tax provisions, or
- the employer is the Crown in right of New South Wales or in any of its other capacities, or the employer is a public, local or municipal body or authority.

More information is available on the OSR website (www.osr.nsw.gov.au); or should you require any support in this regard, your Lawler Partners representative would be pleased to assist.