A new small business employment incentive grant of up to $2,000 is available to non-payroll tax paying businesses that hire new employees (full-time, part-time and casual) on or after 1 July 2015 until 30 June 2019.
This grant is to encourage the nearly 650,000 small businesses in NSW that DO NOT pay payroll tax to hire new employees and expand their business.
Eligibility – Business
• Business has active ABN
• Business DOES NOT have a payroll tax liability, during the 12-month employment period of a new person as at 30 June of the financial year
Eligibility – Employment
• A person is employed in a position that is a new job.
• The employment commences on or after 1 July 2015 and before 1 July 2019.
• The employment is maintained for a period of 12 months.
• Your number of full-time equivalent (FTE) employees, prior to creating a new position must increase and be maintained over a 12 month period.
• The services of the employee are performed wholly or mainly in NSW.
• To receive the grant, the minimum employment for the new job is 12 months starting on the date the employment is commenced
• In the case of part time or casual employees, the grant amount will be pro-rated based on FTE hours of employment.
Does the same person need to stay in the new role for the business to receive the grant?
• Employment is maintained if there is always a person employed in the position for which the grant 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 grant is claimed.
What is 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 12 month period from the creation of the new position.
• Business is required to register the employment of a person in a position that is a new job and advise OSR within 60 days after the employment commences
• A claim may be lodged within 60 days after the 12 month anniversary date; and
• If the employment is eligible employment
ABC Pty Ltd is an Advertising Agency business. From 1 February 2016, they employed a new employee as a receptionist. Prior to 1 February 2016, the business had 5 FTE employees. Once the new employee maintains the position to 1 February 2017, the business will be able to claim the small business grant if the following major criteria are met:
• The business did not incur any payroll tax liability during the 12 month period,
• The FTE for the business is to be 6 or more on 1 February 2017.
The business is required to register the new employee by 1 April 2016 to the OSR.
In order to receive the grant the claim is required to be lodged by 1 April 2017.
If you have any questions about your business eligibility, talk to us today by calling (02) 9299 4520 or email to [email protected]