Small Business Grant – what is it and who is eligible?

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The Small Business Grant provides small business owners in NSW who don’t pay payroll tax, a grant of $2,000 for each new full-time position employed in their business.

1.     Who is eligible?

This one-off payment is available for each new full-time position in your business and to be eligible, at a minimum, you must:

(a)   have an active ABN; and

(b)   not be liable to pay payroll tax during the initial 12-month employment period for a new employee.

 

The current payroll tax threshold for this financial year is $850,000. For more details on payroll tax liabilities and to see if you may be liable for payroll tax, please visit Revenue NSW’s website at: https://www.revenue.nsw.gov.au/taxes/payroll.

 

It is important to note that this grant only applies for employment that commences prior to 1 July 2019.

 

2.     What type of employment is eligible for the grant?

In order to be eligible for the grant, the new employee must be employed in a role that is a “new job”.

A “new job” is created if the number of your full time equivalent (FTE) employees increases (and is maintained) over a 12-month period from the creation of the new position.

When registering a new job for the grant, the Small Business Grant (Employment Incentive) online application will assist you in calculating your FTE. Alternatively, you can manually calculate your FTE using a formula.

If your FTE falls below the required number for more than 30 days, the Chief Commissioner may not approve your application for the grant.

 

3.     Are there any exclusions?

You are not able to claim the grant for an employee if:

(a)   that employee is not considered a common law employee;

(b)   that employee was employed by you in the previous 12 months before you applied for the grant;

(c)   any wages paid by you for that employee are exempt wages under the Payroll Tax Act 2007 (NSW); or

(d)   you are already entitled to a grant, subsidy or other assistance from the government for that employee.

 

Public, local or municipal bodies or authorities are also excluded from claiming this grant.

 

4.     How much is the grant?

The grant is a one-off payment of $2,000 for each eligible full time employee.

In the case of part time or casual employees, the grant amount will be pro-rated based on a formula.

 

5.     How do I register?

You will need to apply online for the grant once the new employee commences. You can then claim the grant once the position has been filled for 12 months. The online form can be accessed at https://www.revenue.nsw.gov.au/grants/sbg/online

 

At Coutts we provide a range of services to businesses including drafting employment agreements for clients as well as providing advice on employment relationships and obligations under the Fair Work Act 2009 (Cth) and relevant Awards. We also assist with grant applications and advice.

To learn more about the Small Business Grant please go to: https://www.revenue.nsw.gov.au/grants/sbg

For further information please don’t hesitate to contact:

Keely Irving
Lawyer
keely@couttslegal.com.au
02 4607 2124

 

This blog is merely general and non specific information on the subject matter and is not and should not be considered or relied on as legal advice. Coutts is not responsible for any cost, expense, loss or liability whatsoever in relation to this blog, including all or any reliance on this blog or use or application of this blog by you.