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Government announces Small Business Grant Posted on October 9, 2018

2015-08-01

Under the incentive scheme, businesses that increase the number of NSW full-time equivalent (NSW FTE) employees, will receive a grant at the anniversary date of employment for each additional NSW employee in a position that is a new job.

Application for registration

Employers are required to register their business and the employment of a person in a position that is a new job. When registering a new job employers will be required to advise the number of NSW FTE employees immediately before the position was filled.

Registration for the grant can be made:

  • by an employer who has an active ABN and is not registered for payroll tax
  • within 60 days after the employment commences.

Registration for the grant is available at www.osr.nsw.gov.au

Eligible businesses

To be eligible for the grant your business must:

  • have an active ABN
  • not have a payroll tax liability, during the 12 moth employment period of a new person as at 30 June of the financial year.

Eligible employment

The employment of a person is eligible for the grant if:

  • the person is employed in a position that is a new job
  • the employment commences on or after 1 July 2015 and before 1 July 2019
  • the employment is maintained for a period of 12 months
  • your number of NSW FTE employees, prior to creating a new position increases and is maintained over a 12 month period
  • the services of the employee are performed wholly or mainly in NSW.

New job

A new job is created if the number of your NSW FTE employees increased and that FTE is maintained over a 12 month period from the creation of the new position.

If your NSW FTE falls below the required number for more than 30 days any time during the 12 months, the Chief Commissioner may refuse to pay the grant.

Calculation of the number of NSW FTE employees

You will have the option of calculating your NSW FTE using the online application, or to manually calculate the figure using the below formula.

The number of NSW FTE employees of an employer on the date of appointment of a new employee (excluding the new employee) and the 12 month anniversary of a new employee’s appointment (including the new employee) is the sum of F + A/B, where:

F = the number of full-time NSW employees on that date
A = the total number of hours worked in the preceding pay period by all part-time NSW employees employed on that date
B = the average number of hours worked in the preceding pay period by all full-time NSW employees employed on that date.

The Chief Commissioner may agree to an alternative method of calculating the number of NSW FTE employees if it is too difficult or costly to determine the exact figures.

Minimum employment

To be eligible for the grant, the minimum employment period is 12 months starting on the date the employment concerned is claimed to commence.

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 in each year of employment for which the rebate is claimed.

The rebate may be paid if the 30 days are exceeded but only if the Chief Commissioner is satisfied that the length of the vacancy is beyond the employer’s control. In this case the rebate will be paid on a pro-rata basis.

Excluded employment

The employment of a person by an employer is excluded from the grant if:

  • the person engaged by your business is not considered a common law employee
  • the person was employed by the employer claiming the grant in the previous 12 months
  • any wages paid by the employer to the person are exempt wages within the meaning of the Payroll Tax Act 2007
  • a grant, subsidy or 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.
Common Law Employee

Only workers you engage as employees will be eligible for the grant. An employee works in your business and is part of your business, whereas a contractor is running their own business and provides services to your business. Contractors and employment agency workers are considered not to be employees.

Exempt wages

You will not be eligible for the grant if you pay wages to employees working in:

  • a religious institution
  • a public benevolent institution
  • a non-profit organisation, whose objectives are solely or dominantly for charitable, benevolent, philanthropic or patriotic purposes
  • a public hospital
  • a non-profit hospital that is carried on by a society or association
  • public and private schools or educational institutions that provide education at the secondary level or below
  • a non-profit Group Training Organisation (GTO) that is approved by the Director-General of the Department of Education and Communities.

Registering for the grant

Registering for the grant is available from 1 July 2015 via an online application.

You are required to register the employment of a person in a position that is a new job and advise us of your NSW FTE employees immediately before the position was filled.

Registration for the grant can be made:

  • by an employer who has an active ABN and is not registered for payroll tax
  • within 60 days after the employment commences

You can apply through the Small Business Grant (Employment Incentive) online application.

Claiming the grant

You can claim the grant through the Small Business Grant (Employment Incentive) online application at www.osr.nsw.gov.au

A claim for grant may be lodged:

  • within 60 days after the 12 month anniversary date
  • if the employment is eligible employment
Supporting Evidence

When you register for the grant, you do not need to provide any supporting evidence. However, you must provide supporting evidence when claiming for the grant.

Supporting evidence may include but is not limited to:

  • most recent Business Activity Statement (BAS)
  • personnel or wage records
  • Workcover records

Payment of the rebate

The grant is a one off payment per new position and is paid by Electronic Funds Transfer when a claim is made on the 12 month anniversary of when the position was created.

For full-time employees the grant amount is $2000.

In the cast 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 the annual grant amount x C/D, where:
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.

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talk to us Discover the difference that the right advice can make

Get in touch with our team today and learn how you and your business can grow to the next level. From structuring to sustainability, we'll help you reach your financial goals and live the lifestyle you deserve.

be better off.