What is a new job?
A new job is the creation of a new position, where the person employed in that position results in an increase in your businesses’ number of full time equivalent (FTE) employees.
Any new job created on or after 1 July 2015 and before 30 June 2019 can be registered for the grant.
What is the grant period?
The grant period is the period between the commencement of a new job and that job’s 12 month anniversary date.
What is the minimum employment period?
The minimum employment period is 12 months starting on the date the new job concerned is claimed to have commenced. This is also known as the grant period.
Employment is maintained if there is always a person employed in the position for which the grant is claimed.
A vacancy in a position can be disregarded if the number of days vacant does not exceed a total of 30 days. The grant may be paid if the 30 days are exceeded but only if the Chief Commissioner is satisfied the length of the vacancy is beyond the employer’s control. In this case the grant will be paid on a pro-rata basis.
What if I become liable for payroll tax after I register a new job for the grant?
During the 12 month employing period of a new person, your business must not have a payroll tax liability as at 30 June of that financial year in order to receive the grant. Please contact OSR if your business falls into this situation, as you may be entitled to the payroll tax Jobs Action Plan rebate.
What is a full-time job?
A full-time job is a position where an employee’s standard or average hours of work per week is 35 hours or more. A casual employee that works a standard or average 35 hours or more per week will be considered a full-time employee for the purposes of the grant.
Do part-time and casual jobs apply?
Yes, if you employ a person in either a part-time or casual position that increases your businesses FTE then you will be eligible for the grant. However in the case of part time or casual employees, the grant amount will be pro-rated based on FTE hours of employment. The amount payable on the anniversary will be:
Annual grant amount x C/D
C = the number of hours worked by the employee during the previous 12 months
D = the average number of hours worked by full time employees during the previous 12 months
Is overtime included in determining the average hours worked by an employee?
Include the overtime hours worked by part-time and casual employees when determining their average hours worked. Do not include overtime worked by full-time employees.
What employees can be employed in the new job?
Only common law employees can be employed in the new job to be eligible for the grant.
Contractors or employment agency on-hired workers are not eligible for the grant. However an employment agency’s bona fide employees will be eligible for the grant if all other conditions are met.
Are Government employers eligible for the grant?
Federal, State or local Government employers are not eligible for the grant.
What if I employ an apprentice or trainee in a new job?
The employment of an apprentice or trainee in a new job will be entitled to the grant if all other conditions are met.
How do I calculate my full time equivalent (FTE) employee number?
The online application will calculate your FTE employee number based your answers to a series of questions.
You also have the option to manually calculate your FTE employee number using the following formula:
FTE = F + A/B
FTE = Full-time Equivalent
F = number of NSW full-time employees on that date
A = total number of hours worked in the preceding pay period by all NSW part-time/casual employees employed on that date
B = average number of hours worked in the preceding pay period by all NSW full-time employees employed on that date.
To calculate the number of FTE employees:
- on the date of appointment of a person in a new job, exclude the person employed in the new job
- on the anniversary of commencing the new job, include the person employed in the new job.
What employees do I include in my FTE calculation?
Only include employees that work wholly or mainly in NSW. You must also include any employees on leave, who if working would perform their services wholly or mainly in NSW.
What if I have different pay periods for different employees?
If you have different pay periods for various employees, you will need to choose one and apply it consistently to all employees for the purposes of calculating the FTE for that grant period.
What happens if my business is merged with or acquired by another business during the grant period?
If your business is merged or acquired by another business during the grant period and you do not claim the grant but would have been entitled to it had the merger or acquisition not taken place, then the new employer will be eligible to claim the grant. The 12 month period will be calculated from when the employee transfers to the new employer.
Does the same person need to stay in the new job throughout the grant period?
No, the same person does not need to be in that position at the anniversary date. However, to continue to be eligible for the grant, the job must not be unoccupied for a period longer than 30 days.
You must provide the details of the new person in the original position via the online edit function.
I created a new job just prior to 1 July 2015, can I still register for the grant?
No, only jobs created on or after 1 July 2015 and before 30 June 2019 can be registered for the grant.
What if the employment type of the position changes during the grant period (for example, part-time to full-time or vice versa)?
You can still receive the grant, but will need to contact OSR as the grant will be paid on a pro-rata basis.
What happens if I enter incorrect information in my online registration?
You can access and amend your details (except the number of FTE employees) at any stage via the online application. When you make an amendment to the job details it will update your previously lodged information and you will be provided with a new position number. If you need to modify the number of FTE employees, please contact OSR immediately.
What happens if my business ceases during the grant period?
Then you are not eligible to claim the grant. An increase in the FTE must be sustained for 12 months.
What happens if the employee in the position works in different states/territories?
The employee must at least perform more than 50% of their services in NSW during the grant period to be entitled to the grant. For example if an employee works only 6 months out of the 12 in NSW they would not be entitled to the grant, as they have not performed more than 50% of their services in NSW.
My employee’s anniversary date has been reached, how do I claim the grant?
To claim the grant you will need to complete an online claim for each new job by accessing your original online registration. As part of your claim you will be required to provide supporting documentation to confirm your eligibility for the grant.
What method of payment will the grant be?
The grant is paid via Electronic Funds Transfer. Upon claiming you will need to provide bank account details for the payment.
What if I am a sole trader or partner in a partnerships?
A sole trader or partnership business structure can only claim the grant for people they employ from 1 July 2015.
My wages are exempt from payroll tax, can I still apply for the grant?
Can I withdraw my claim?
Yes. Claims can be withdrawn by going on-line and withdrawing the position.
What happens if I'm registered for the Small Business Grant and then become liable for Payroll Tax?
The Office of State Revenue (OSR) is aware of situations where a customer may have been eligible for the Small Business Grant (SBG) however before the first anniversary of the commencement of the job, the customer becomes liable for payroll tax. This means the customer is no longer eligible for the SBG and may also not be eligible for the Jobs Action Plan rebate (JAP) because they did not register that new job for the JAP within the 90 days of commencement (as required by JAP revenue ruling JAP 001).
In keeping with the policy intent of the SBG and JAP, the OSR will accept applications for the JAP in situations as described above, provided all other eligibility criteria for the SBG and JAP are met, for example an increase in FTE. The customer will also have to register for payroll tax when they become liable or before the first anniversary of the new employee commencing.
An example of a customer no longer being eligible for the SBG
Mary started work with ABC Pty Ltd in August 2016. At that time ABC Pty Ltd was not liable to pay payroll tax. ABC Pty Ltd registered the new employee under the SBG scheme. In May 2017 ABC Pty Ltd became liable for payroll tax. The following month they registered and began paying payroll tax. In August 2017 ABC Pty Ltd's claim for the SBG was rejected because they were now liable for payroll tax. ABC Pty Ltd's FTE increased and they met all other eligibility criteria for the SBG and JAP. Their registration will be transferred to the JAP and they may be eligible for the JAP rebates.
If you think this scenario applies to you, please email us with an explanation of your situation.
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