What is the Small Business Grant?

Last month we provided an overview of the NSW Payroll Tax Jobs Action Plan (JAP) Rebate.  This month we look at the Small Business Grant (SBG), which is a smaller ($2,000) grant available for small businesses that do not pay payroll tax (and therefore do not qualify for the JAP rebate).

Similar to the JAP rebate, the SBG is intended to aid businesses that employ new workers in new jobs within the NSW region.

Eligible Business

To be eligible for the SBG you must:

• Have an active ABN and;
• Not be registered or liable for payroll tax during the 12 month grant period.

Eligible Employment 

To receive this grant you must meet all of the following employment conditions for the relevant job created:

• The person is employed in a position that is a new job. This is achieved if the number of your Full Time Equivalent (FTE) employees increases.
• The employment commences on or after 1 July 2015 and before 1 July 2019.
• The employment is maintained for a period of 12 months.
• The services of the new employee are performed wholly or mainly in NSW.

Excluded employment

The new employment of a worker is excluded from the grant if:

• The person engaged by your business is not considered an employee (eg. a contractor).
• The individual was employed by the employer in the previous 12 months.
• The wages paid to the employee are considered exempt wages under the Payroll Tax Act 2007.
• Another grant, subsidy or assistance is payable by the state in relation to the new employment.
• The employer is a public, local or municipal body or authority.

Minimum employment period

The minimum employment for the new job is 12 months starting on the date the employment commenced. This does not require the same person to be employed in this position for the full 12 months. Any vacancy in the position is disregarded if it does not exceed 30 days. 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

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 within 60 days after the employment commences.

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

http://www.revenue.nsw.gov.au/grants/sbg/online

Claiming the grant

After the 12 month period has been completed and all requirements have been met, the business must lodge a claim for the grant within 60 days after the 12 month anniversary of the new employment.

The following supporting evidence must be provided when claiming the grant:

• Most recent payslip before the 12 month period is complete;
• A PAYG Payment summary relating to the financial year that falls within the 12 month grant period;
• The Tax File Number must be redacted on all supporting documentation submitted.

The claim must be completed online via the NSW Office of State Revenue’s website.

http://www.revenue.nsw.gov.au/grants/sbg/online

Payment of the rebate

The grant is a one off payment of $2,000 that is payed after a claim is made and all criteria have been met. If the new job is part time or casual, the amount paid is pro-rated based on how many hours the part time employee worked compared to a fulltime position.

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