What You Need to Know: Jobs Action Plan for NSW Businesses

FILED UNDER: SMALL BUSINESS, PAYROLL, EMPLOYMENT, GRANTS, INCENTIVES

In order to encourage the creation of new jobs in New South Wales (NSW), the NSW government introduced a scheme in 2011 that incentivises businesses who continuously employ full-time employees for a set number of years.


The scheme is known as the Jobs Action Plan. Under the plan, businesses registered in the state are given payroll tax rebates when they employ new workers in new eligible employment. 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 $2,000 payable on the first anniversary and $4,000 on the second anniversary.


Eligibility


To be eligible for the scheme, an employer:


  • Must be registered for payroll tax in the NSW state; and,
  • Should be able to continuously increase its number of full-time equivalent (FTE) employees from 1 July 2011 until 30 June 2019.

An employer interested in the scheme is required to register the employment of an individual in a position that is a “new job”. A new job is created if the number of FTE increases and is maintained over a 2-year period from the date that the new position was created. If employment is maintained only for the first year, only the first instalment will be paid.


When registering the employment of a person, the employer must inform the Office of the State Revenue (OSR) of NSW of the number of FTEs immediately before the position was filled. The formula for the calculation of the FTEs can be found on the FAQs section of the OSR website.


Interested employers must register for the scheme within 90 calendar days after employment.


Eligibility exclusions


There are a number of eligibility exclusions that should be considered before creating a position or applying for funding. These can be found at the OSR website or one of Easdowns specialist HR staff can assist businesses with eligibility requirements.

The Jobs Action Plan is great for NSW business who are constantly increasing their FTEs. If you need advice on how you can maximise this scheme, our experts are here to help. Easdowns provides expert financial and business advice that is guaranteed to help you find more growth opportunities for your business.