If you own a small business in NSW you could be eligible for a Small Business Grant. This grant is designed to encourage small businesses in NSW that do not pay payroll tax to hire new employees and expand their business.
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 applies to new positions offered from 1 July 2015 to 30 June 2019 where the employment is maintained for a period of 12 months. The grant is then payable after the first year anniversary date.
What businesses are eligible?
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.
How much is the grant?
A grant of $2,000 is given for full-time employees and for part-time or casual employees it will be prorated based on FTE hours of employment.
What employment is eligible?
Your business will receive the grant if the following employment conditions are met:
- A person is employed for a new position or new job
- The employment is commenced on or after 1 July 2015 and before 1 July 2019, and maintained for a period of 12 months.
- Your number of full-time equivalent (FTE) employees, prior to creating a new position must increase and be maintained over a 12 month period
What is considered a new job?
A new job is created if the number of your FTE employee’s increases and that FTE is maintained over the following 12-month period. Note that is your FTE drops below the required number for more than 30 days at any time during the 12 months, the Chief Commissioner can refuse to pay the grant. If you are unsure how to manually calculate your FTE, the Small Business Grant (Employment Incentive) online application will assist you in calculating your FTE.
What types of employment are excluded from the grant?
In some cases employment may be excluded from the grant. This is usually when:
- The person engaged by your business is not considered a common law employee
- The employer of the new employee claimed the grant in the previous 12 months
- Wages paid by the employer to the new employee are exempt wages under the Payroll Tax Act 2007. Exempt wages are those paid by non-profit organisations that are religious institutions, charitable organisations or organisations set up for the public benefit. Some wages are exempt based on circumstance, for example wages paid to employees on maternity, paternity or adoption leave or on military leave.
- A grant, subsidy of other assistance is payable to the employer for the employment of the person by the State.
- The employer is the Crown in right of NSW or in any of its other capacities.
- The employer is a public, local or municipal body or authority.
What you need to know about registration & claiming
Registration for the grant was made available from 1 July 2015 via the online application. It’s important to note that you are required to register the employment of a person in a new position and advise the number of FTE employees BEFORE the position was filled. Registration for the grant can be made within 60 days after commencement of employment.
You must claim the grant through the online application within 60 days after the 12 month anniversary date. Supporting documents are not required when registering for the grant; however, you will be required to produce supporting documents when claiming the grant. These documents include:
- Most recent Business Activity Statement (BAS)
- Personnel or wage records
- Workcover records
How is the grant paid?
Payment of the grant is made through Electronic Funds Transfer when claimed on the 12 month anniversary date of the new job.
If you would like more information or require any assistance with an application please contact a Lockwood & Ward business advisor on 02 9299 7044.