Do you operate a business in New South Wales? If so, the recent NSW State budget announcement of 23 June 2015 may have some benefit to you.

The budget announced that they will spend around $27 million to create a new Small Business Employment Incentive Scheme for non-payroll tax paying small businesses that create new jobs. This will therefore apply to NSW businesses that have a taxable wages bill of less than the current annual threshold of $750,000.

If you are not liable to payroll tax but do employ workers in NSW you may be eligible for a grant of up to $2,000 per full time equivalent employee when you hire new people for your team. A pro rata grant is available for part time and casual workers who remain in place for over 12 months.

The grant will apply to new positions offered from 1 July 2015 where the employee remains with you until after their one year anniversary. The grant becomes payable after the anniversary date.

In order to be eligible you need to –

  • Register with the Office of State Revenue within 60 days of hiring the new employee;
  • Have an active ABN;
  • Not become liable to payroll tax within the 12 month employment period.

In addition, you cannot claim the grant if your number of full time equivalent employees does not substantially remain at the higher number over the period. Amongst other items, you should note that you can also not claim the rebate if the employee has payroll tax exempt wages or was a previous employee.

The scheme is expected to be in place for all new roles created until 1 July 2019.

You can register for the rebate online at Refer to the "Small Business Employment Incentive Grant Scheme".

This publication is issued by Moore Stephens Australia Pty Limited ACN 062 181 846 (Moore Stephens Australia) exclusively for the general information of clients and staff of Moore Stephens Australia and the clients and staff of all affiliated independent accounting firms (and their related service entities) licensed to operate under the name Moore Stephens within Australia (Australian Member). The material contained in this publication is in the nature of general comment and information only and is not advice. The material should not be relied upon. Moore Stephens Australia, any Australian Member, any related entity of those persons, or any of their officers employees or representatives, will not be liable for any loss or damage arising out of or in connection with the material contained in this publication. Copyright © 2014 Moore Stephens Australia Pty Limited. All rights reserved.