The Jobs Action Plan Rebate is an incentive provided by the New South Wales (NSW) Government to eligible businesses who employ new workers in new eligible employment. It is a payroll tax rebate of a maximum of $6,000, paid in instalments of $2,000 and $4,000 at the completion of 1 year and 2 years of employment respectively.

Eligible Employment

Eligible employment is achieved by creating a “new job” within the business.  A new job is created if the number of full time equivalent (FTE) employees increases and is maintained over a 2 year period.  If the employment is only maintained for the first year, the rebate will only be paid for the first year.

If a business employs a new person and meets all of the following conditions, the employment is included in the rebate scheme:

• The business is registered for and pays payroll tax.
• A person is employed on a full-time, part-time or casual basis and is in a position that is a new job.
• The employment commences on or after 1 July 2011 and before 1 July 2019.
• The employment is maintained for a period of at least 2 years (to be eligible for the full rebate).
• The services of the employee are performed wholly or mainly in NSW.
• The number of full time equivalent employees of the employer (excluding the new person) is at or below 50 on the date on which the employment commences.
• The wages being paid to the new person are taxable wages (that is, the wages must be subject to NSW payroll tax).

From 19 November 2014, internally transferred employees are eligible for the rebate provided the former employer was eligible for the rebate, and the following criteria are met:

• An employee is transferred between employers within the same group; or
• An employee is transferred to a new employer as a result of a merger, take over or acquisition; and
• The former employer had registered an online application for that position; and
• The position is registered within 90 days of the transfer date.

Excluded Employment

The employment of a new person is excluded from the rebate scheme if:

• The person was employed by the employer claiming the rebate in the previous 12 months.
• The employer is entitled to a rebate under the Payroll Tax Act 2007 (apprentice/trainee rebate).
• A rebate, subsidy or other assistance is payable to the employer for the employment of the person by the State.
• The person is employed by the government, or a public, local or municipal body or authority.

Minimum Employment Period

To receive the full rebate, the minimum employment for the new job is two years, starting from the date the employment commenced. This does not require the same person to be employed in this position for the full two years. Any vacancy in that position is disregarded if it does not exceed 30 days in each year of employment for which the rebate is claimed. If the vacancy is out of the employer’s control, the commissioner can elect to accept the specific situation and pay the rebate on a pro-rata basis.

Registration

To receive the rebate the employer is required to register the employment of a new person in a position that is a new job and report the number of full-time equivalent employees (not including the new employee). This has to be done:

• By an employer who is registered for and paying payroll tax; and
• Within 90 days after the employment commences (this time period is very strict).

The application must be lodged online via the NSW Office of State Revenue’s website.

Payment of the Rebate

For new jobs commencing on or after the 31 July 2016 the employer will receive $2,000 after 1 year of employment and will receive the remaining $4,000 after the completion of the second year of employment.

If the new job is part time, the amount paid is pro-rated based on how many hours the part time employee worked compared to a full time position.

The rebate cannot exceed the amount of NSW payroll tax paid for that financial year.

If you think your business may be eligible, or if you have any questions about the rebate, please contact us.