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NSW Payroll Tax Rebate Scheme

Does this apply to your business?

This scheme is designed to encourage the creation of new jobs in NSW, and provides a rebate against an employer’s payroll tax liability of up to $4,000 per employee. The scheme is for new jobs created between 1 July 2011 to 30 June 2013 and up to $5,000 per employee for new jobs created after 1 July 2013.  The rebate is payable as to 50% on the first anniversary and 50% on the second anniversary of the creation of the new position.

How to register

Employers wanting to claim the rebate must apply to the OSR and provide such details as the name and title of a person in a position that is a new job, as well as the number of full time equivalent (FTE) employees immediately before the position was filled.

Registration for the scheme may be made between 1 July 2011 and 30 June 2019 by an employer who is already registered and paying payroll tax, and should be made within 30 days after the employment to which the application relates first commences.  See the following link to the Office of State Revenue website for further details on how to apply.

If you have not registered we may be able to assist by obtaining retrospective registrations back as far as 1 July 2011.

For more information on this rebate, please go to the NSW Government Jobs Action Plan Website

What requirements have to be met?

The main requirements include:

  • a  person is employed (full-time or part-time) in a position that is a new job (i.e. a position that results in a sustained increase in the number of the employer’s, FTE employees, sustained on both the first and second anniversaries and throughout the two year period);
  • the employment commences on or after 1 July 2011;
  • the employment is maintained for a period of at least 2 years (can be different people employed during this period, as long as the position itself is maintained);
  • the services of the employee are performed wholly or mainly in NSW; and
  • the employment is not excluded from the rebate scheme (e.g. where represents continuation of prior employment with the same employer or another employer).

For assistance in applying for the rebate, or determining your company’s eligibility, please contact TNR