Businesses paying NSW payroll tax may be eligible to receive up to $5,000 for each additional full time equivalent (FTE) position created since 1 July 2011. Recent amendments to the scheme have made the rebates more generous and accessible, supporting employers who are investing in job creation across the state.
More generous rebates for new jobs
The NSW Government has made several improvements to the payroll tax rebate scheme to encourage employment growth. Under the updated rules:
• the rebate has increased from $2,000 to $3,000 in the second year of employment for eligible new positions created from 1 July 2013
• the requirement to repay the first year rebate has been removed, even if the business does not qualify for the second year rebate
• the job creation target has been removed, simplifying eligibility
• the scheme has been extended until 30 June 2015, meaning any new FTE role created before that date may qualify
These changes reflect a strong government commitment to stimulating the NSW economy by supporting businesses willing to expand their workforce.
How the rebate works
The rebate applies to net increases in full time equivalent employee numbers. If your business has grown its FTE headcount since 1 July 2011, you may be entitled to receive cash back for each additional position maintained over the qualifying period.
Eligible businesses can claim:
• an initial rebate in the first year of employment
• a higher rebate in the second year of employment (now $3,000) for positions created after 1 July 2013
The removal of the repayment requirement in situations where second-year eligibility is not met provides additional certainty for employers.
Who can benefit?
This scheme is particularly valuable for:
• businesses experiencing growth and hiring new staff
• employers expanding operations into new markets
• companies planning recruitment in the short to medium term
• industries reliant on skilled labour where incremental hiring supports capacity
The rebate is designed to reduce the financial burden associated with expanding your workforce and to support long-term job creation.
Next steps
If you believe your business may have increased its FTE numbers, or if you are planning to recruit before 30 June 2015, it is worth assessing your eligibility under the updated rules.
