The NSW state government has recently announced an increase to the Payroll Tax Rebate Scheme (Jobs Action Plan) and an extension of the scheme until 30 June 2015.

What is the Payroll Tax Rebate Scheme?

The Payroll Tax Rebate Scheme, also known as the Jobs Action Plan, is a key priority of the NSW state government and is designed to give NSW businesses the incentive to employ new workers and expand their enterprises in both metropolitan and non-metropolitan areas.

Under the plan, businesses receive a payroll tax rebate following the employment of each additional full-time equivalent (FTE) employee for a period of two years into a position that is a new job.

Forty percent of the new jobs will be prioritised for non-metropolitan areas of NSW with the remaining sixty percent in metropolitan areas.

2013 changes

On 1st July 2013, changes to the scheme were announced that included an extension of the scheme until 30 June 2015 and an increase to the rebate from $4000 to $5000 for new jobs created after 1 July 2013.

This rebate will be paid in two parts:

  • $2,000 will be paid at the end of the first year of employment; and
  • $3,000 will be paid at the end of the second year of employment.

For part-time employees the rebate will be pro-rated based on full time equivalent hours of employment.

Eligibility and Registration

To be eligible for the rebate scheme, you must be registered as an employer and paying payroll tax under the Payroll Tax Act 2007.

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

Registration may be made:

  • By an employer who is registered and paying payroll tax
  • Within 30 days after the employment to which the application relates first commences.

You can apply online:

Rebate Scheme (Jobs Action Plan) online registration

or by completing and sending a registration form:

Payroll Tax Rebate Scheme (Jobs Action Plan) – (OPT021)

If you would like more information or assistance with completing your application, please contact your Commercial Associates advisor or click on the Email Firm button below and we will be in touch.

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