NSW Small Business Grant and Jobs Action Plan Rebate
These two NSW Government initiatives are designed to encourage NSW businesses to hire employees and grow. Is your business missing out on $6,000 per new employee hired?
NSW Small Business Grant
The NSW Small Business Grant is designed to reward NSW businesses who hire new employees and grow their NSW workforce. The Grant is paid at a rate of $2,000 per new full-time employee hired. A pro-rata grant amount is paid for casual and part-time employment.
Am I eligible to claim the NSW Small Business Grant?
You are eligible to apply for the Small Business Grant if:
You are a small business with an ABN;
You engaged an employee after 1 July 2015 who is based predominately in NSW;
After 12 months of the new employee’s start date, you have a higher full-time equivalent (FTE) compared to just before the new employee started work.
For the purposes of the NSW Small Business Grant, you are considered to be a small business if you are not liable to pay NSW Payroll Tax.
How do I Apply for the NSW Small Business Grant?
The NSW Small Business Grant is administered by Revenue NSW, who provide an online platform to manage and lodge your NSW Small Business Grant applications. You are required to apply for the NSW Small Business Grant immediately after your new employee commences employment.
You will need the following details before to start your NSW Small Business Grant application:
Your business details including ABN, address and contact details;
New employee details including date-of-birth, job title and address;
Your NSW workforce full-time equivalent number just before hiring the new employee and also at the 12 month anniversary date.
Jobs Action Plan Rebate
The Jobs Action Plan Rebate is a NSW Government program which provides NSW businesses with a Payroll Tax rebate of up to $6,000 for hiring new employees in NSW and increasing their overall amount of employees.
Am I eligible to claim the Jobs Action Plan Rebate?
The employment of a new employee who is based in NSW is eligible for the Jobs Action Plan Rebate if:
An application for the rebate is registered with Revenue NSW within 90 days of each new employee’s start date;
Your business has a full-time equivalent of less than 50 (special rules apply to grouped entities);
The employment is maintained for at least 12 months to be eligible to claim the first instalment of the rebate, then another 12 months to be eligible to claim the balance;
At the employee’s first and second year work anniversary, you have a higher full-time equivalent (FTE) compared to just before hiring the new employee;
The new employee does not fall into one of the exclusion categories (i.e. hiring an ex-employee, contractor or apprentice).
How do I apply for the Jobs Action Plan Rebate?
Like the NSW Small Business Grant, the Jobs Action Plan Rebate is administered by the Office of State Revenue who provide an online platform to register and lodge claims. Revenue NSW strictly requires registration for the rebate within 90 days of each new employees' start date. The claim is then revisited after 12 months to assess eligibility to claim the first instalment of the rebate, then again after another 12 months to claim the second instalment of the rebate.
You will need the following information handy to register and claim the Jobs Action Plan Rebate:
Your NSW Client ID and Correspondence Number;
New employee details including date of birth, job title and address;
Your NSW workforce full-time equivalent number just before hiring the new employee and also at the 12 and 24 month anniversary dates.
The NSW Jobs Action Plan Rebate has been subjected to repeated fine tuning recently given the latest data showing the scheme had gone over budget by $130 million due to the Commissioner allowing businesses to back date and register new employees commencing all the way back from 1 July 2011. As a result, from 23 November 2015, Revenue NSW has been strictly enforcing the registration window of 90 days from commencement of employment. If you miss this window, then you will not be eligible to claim the Jobs Action Plan Rebate on that new employee.
For more information on claiming either the NSW Small Business Grant or Jobs Action Plan rebate please contact our office; — Link to Contact Form.