Rebate scheme - Jobs Action Plan

The Jobs Action Plan is designed to give businesses an incentive to employ new workers and expand their enterprises in both metropolitan and regional areas in NSW.

Under the plan, eligible businesses that increase the number of NSW FTE employees, will receive a payroll tax rebate following the employment of each additional NSW employee in a position that is a new job.

New jobs commencing on or after 31 July 2016, will only be eligible for the rebate if the employers full-time equivalent (FTE) employee number, prior to the new job, is at or below 50.

The total rebate amount per new job has increased to $6,000. New jobs commencing on or after 31 July 2016 will receive a rebate of up to $2,000 payable on the first anniversary and up to $4,000 on the second anniversary.

Scheme end date

The rebate is available for eligible jobs commencing on or after 1 July 2011 and before 1 July 2019.

Note: a registration for a new job must be made within 90 days of the job commencement date.

Application for registration

Employers are required to register the employment of a person in a position that is a new job and advise the number of NSW FTE employees immediately before the position was filled. Registration may be made:

  • by an employer who is registered and paying payroll tax in NSW

  • within 90 days after the employment to which the application relates first commences.

Application for registration for the Payroll Tax Rebate Scheme (Jobs Action Plan) is available

Eligible employment

The employment of a person is eligible for the rebate scheme if the employment meets all of the following conditions:

  • a person is employed (full time or 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 the minimum employment period

  • the services of the employee are performed wholly or mainly in NSW.

New job

A position is a new job if the employment of a person in that position results in a sustained increase in the employer’s NSW FTE employees. This increase must be sustained on both the first and second anniversaries of the date the employment commenced. However if employment is only maintained for the first year then the rebate will only be paid for that year.

Calculation of the number of NSW FTE employees

The number of NSW FTE employees of an employer on the date the new employee commenced in the new job (excluding the new employee) and on the first and second anniversary of a new employee’s commencement (including the new employee) is the sum of F + A/B, where:

F =  the number of full-time NSW employees on that date

A = the total number of hours worked in the preceding pay period by all part-time NSW employees employed on that date

B = the average number of hours worked in the preceding pay period by all full-time NSW employees employed on that date.

The Chief Commissioner may agree to an alternative method of calculating the number of NSW FTE employees if it is too difficult or costly to determine the exact figures.

Minimum employment period

To be eligible for the first and second year rebate, the minimum employment period is two years starting on the date the employment concerned is claimed to commence.

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 be paid if the 30 days are exceeded but only if the Chief Commissioner is satisfied that the length of the vacancy is beyond the employer's control.

Excluded employment

What types of employment are excluded from the rebate?

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, or a group member of 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.

Applying for a rebate

To apply for the rebate employers will need to submit an application for the payment of the rebate in respect of the employment of a person.

An application for rebate may be lodged:

  • within 30 days after the first and/or second anniversary date of employment

  • if the employment is eligible employment.

Payment of the rebate

Certain conditions apply in respect of the payment of the rebate for each position that is a new job. These conditions are:

  • for part-time employees, the rebate will be pro-rated based on NSW FTE hours of employment

  • the annual rebate will be payable if the higher level of employment is maintained for the first and second anniversary of employment. However, you are not required to repay the rebate for the first year of employment if you do not sustain the increase in employment at the second anniversary.

Amount of rebate payable per employee

The total rebate payable is the annual rebate amount per full-time employee and a proportion of the annual rebate amount for a part-time employee.

New job start date First anniversary Second anniversary
1 July 2011 - 30 June 2013 $2,000 $2,000
1 July 2013 - 30 July 2016 $2,000 $3,000
31 July 2016 - onwards $2,000 $4,000

In the case of part time employees, the rebate payable on each anniversary is:

annual rebate amount multiply by C divided by D, where:

C = the number of hours worked by the employee during the previous 12 months

D = the average number of hours worked by full-time NSW employees during the previous 12 months.

The maximum rebate payable for a year of employment is the amount of the employer's net payroll tax liability for the financial year in which the claim for the rebate is made.

For more information on the jobs action plan, contact us.

Payroll Tax Rebate Scheme – Jobs Action Plan (Fresh Start Support)

As part of the Jobs Action Plan Rebate Scheme, the government has added an initiative called the Jobs Action Plan Rebate Scheme – Fresh Start Support.

The new Fresh Start Support Rebate is a one-off amount of $1,000 that can be claimed at the first anniversary of an eligible employee’s employment start date.

This rebate is eligible to employers who employ a new person who has been made redundant by an employer who is a designated employer within the period of 1 January 2014 and 30 June 2015.

In respect to the designated employer, Electrolux Pty Ltd (Orange factory), the rebate is eligible on employees made redundant by that employer within the period 1 January 2014 and 30 June 2017.

Employers are required to provide documentation in relation to the employee’s redundancy to be eligible for the Fresh Start Support Rebate, for example a termination letter.

All existing conditions that apply to the current Jobs Action Plan Rebate scheme also apply to the new Fresh Start Support Rebate.

Contact us

Payroll tax clients - registered before 1 July 2018

Phone
1300 139 815*
8.30am - 5.00pm Monday to Friday
Email

New payroll tax clients - registered after 1 July 2018

Phone
02 9761 9366
8.30am - 5.00pm Monday to Friday
Email

Lodgement enforcement

Phone
1300 214 590*
8.30am - 5.00pm Monday to Friday
Email

Jobs Action Plan

Phone
1300 139 815*
8.30am - 5.00pm Monday to Friday
Email
 

Last updated: 12 July 2018