none

ARE YOU MISSING OUT ON PAYROLL TAX REBATES FOR NEW EMPLOYEES?

13-03-2015
by 
in 

Manufacturers are encouraged to take advantage of a scheme that provides businesses with a payroll tax rebate when they create new jobs in NSW and Tasmania.

The NSW Government’s Jobs Action Plan has been extended to June 30, and the rebate increased from $4,000 to $5,000 for new jobs created after July 1, 2013.

The government has also removed the requirement for employers to repay the first year’s rebate if the new employee is no longer employed at the second anniversary date.

To be eligible for the scheme you must be registered as an employer and paying payroll tax in NSW.

Surprisingly, NSW and Tasmania are the only states that offer employers payroll tax rebate incentives to help generate new jobs.

Also surprisingly, the vast majority of employers in NSW have been slow to embrace the Jobs Action Plan since it was first introduced in 2011.

“Partly, no-one seems to have known about it,” says David Sofrá, a tax expert with leading global professional services firm KPMG.

“Analysis conducted by KPMG suggests these incentives are often under-utilised by employers, even though the benefits to employment costs can be significant.”

“Anecdotal evidence suggests the majority of companies we have approached were unaware of the Jobs Action Plan,” he says.

“Second, in the early days of the scheme the administrative burden was onerous, with companies required to register each new employee within 30 days. This requirement has since been relaxed, making the Jobs Action Plan even more attractive to employers in NSW.

“We would strongly urge all NSW and Tasmania companies to look hard at this scheme.”

The newly-elected Victorian Labor Government has promised to extend a payroll tax rebate scheme, with details still to be announced.

This would provide significant incentives to employers looking to hire in the State from 2015 onward.

Mr Sofrá said the Victorian Government’s pledge to enact the Back to Work Act, would create a new suite of incentives for companies employing in Victoria.

Manufacturers in NSW, Tasmania or Victoria that have increased their headcounts in the last few years, should explore these payroll tax opportunities as a priority, he says.

“These schemes provide incentives for Australian manufacturers to employ local staff rather than out-sourcing off-shore using low cost labour.

“It not only ensures jobs aren’t going overseas, but also stops jobs from going interstate.”

Mr Sofrá said KPMG could assist manufacturers with applications for payroll tax rebates.

“Basically, we can help companies cut through much of the red tape,” he said.

David Sofrá can be contacted on Ph: 03 8663 8704 or davidsofra@kpmg.com.au

Related news & editorials

  1. Robot
    24.03.2021
    24.03.2021
    by      In , In , In
    A startup company that aims to develop general-purpose robots for space stations, the surface of the Moon and Mars has attracted the attention of Epson and its subsidiary, Epson X Investment Corporation, who will provide funding.
    GITAI, based in Japan, aims to lessen the risk and burden on... Read More
  2. Photo of Oskar Lapp
    19.03.2021
    19.03.2021
    by      In , In
    The life of a technology pioneer whose cables, connectors and automation innovations are helping facilitate automation and Industry 4.0 transformations now sweeping the globe is being celebrated in Australia this month on the 100th anniversary of the birth of Oskar Lapp.
    LAPP Australia is one of... Read More
  3. AMGC webinar flyer
    16.03.2021
    16.03.2021
    by      In , In
    The Australian Government has announced a $30 million fund to help smaller local manufacturers turn their ideas into commercial outcomes and help create more jobs.
    Minister for Industry, Science and Technology Karen Andrews said the Commercialisation Fund would foster projects that bring industry... Read More
  4. JobMaker promotion graphic
    12.03.2021
    12.03.2021
    by      In , In
    The ATO’s Deputy Commissioner, James O’Halloran, is urging employers to contact their tax or BAS agents, or visit the ATO’s website, if they need advice on applying for the government’s JobMaker Hiring Credit, introduced at the end of last year.
    Under the initiative, which has a cut-off date of... Read More
Products
Suppliers