|Ruling number||JAP 001|
|Date issued||19 October 2015|
|Issued by||Stephen Brady|
Chief Commissioner of State Revenue
|Effective from||23 November 2015|
The Payroll Tax Rebate Scheme (Jobs Action Plan) Act 2011 ('the Act') is designed to assist in the creation of new jobs by establishing a payroll tax rebate scheme that gives employers an incentive to increase the number of full time equivalent employees for a period of 2 years.
Under the scheme, businesses in both metropolitan and non-metropolitan areas of NSW that increase the number of NSW full-time equivalent (NSW FTE) employees will receive a payroll tax rebate for employing each additional NSW employee in a new job. A rebate of $2,000 is payable if eligible employment is maintained for at least 1 year, and a further rebate of $3,000 is payable if eligible employment is maintained for at least 2 years.
A rebate is available in respect of new jobs created after 1 July 2011. Applications for the rebate will close on 30 September 2019 for new jobs created up to 30 June 2019.
Under section 20 of the Act, an employer must apply for registration of a new job for the purpose of receiving the rebate within 30 days after the relevant employment commenced.
Section 20 also gives the Chief Commissioner of State Revenue a discretion to accept registration applications after the 30 days has passed. Since the scheme commenced on 1 July 2011, the Chief Commissioner’s practice in relation to the exercise of the discretion has been to accept all applications for late registration of new jobs without justification, that is, without enquiry as to the reasons for late application and without regard to how overdue it was.
From 23 November 2015 that practice will change. The purpose of this Revenue Ruling is to explain how it will change.
From 23 November 2015, the following practice will apply.
The Chief Commissioner will accept applications for late registration without justification if the application is made with OSR within 90 days after the employment to which the registration relates commenced.
The Chief Commissioner will only accept an application for late registration made more than 90 days after the commencement of employment if the Chief Commissioner considers it appropriate to do so having regard to all relevant factors, including:
An application for registration as a claimant made more than 90 days after commencement of the employment, must be accompanied by a submission explaining why it should be accepted more than 30 days after commencement of the employment, as specified in section 20, and the reasons for the failure to apply within that period.
This Revenue Ruling will apply to applications for registration received on or after 23 November 2015.
Please note that rulings do not have the force of law. Each decision of the Chief Commissioner will be made having regard to the circumstances of each case.