2013-2014 NSW Budget Changes

INCREASE IN THE PAYROLL TAX THRESHOLD

Increase in the payroll tax threshold from $689,000 to $750,000 from 1 July 2013 and indexation will be removed. This means around 1,300 fewer businesses will have to pay payroll tax and the remaining will have their payroll tax bill cut by an average of $3,000 per annum.

INCREASE IN THE PAYROLL TAX REBATE

The Jobs Action Plan is a key priority of the NSW Government and is designed to give NSW businesses the incentive to employ new workers and expand their enterprises in both metropolitan and non-metropolitan areas. Under the plan, businesses that increase the number of full-time equivalent (FTE) employees receive a payroll tax rebate following the employment of each additional employee in a position that is a new job.

To be eligible for the rebate scheme, you must be registered as an employer and paying payroll tax under the Payroll Tax Act 2007. The payroll tax rebate will be extended for another two years, until 30 June 2015, and the rebate will be increased from $4,000 to $5,000 for each new job supported under the Jobs Action Plan after 1 July 2013.

The rebate applies to the employment of an additional employee in a new job and will be paid in two parts:

• $2,000 will be paid at the end of the first year of employment; and
• $3,000 will be paid at the end of the second year of employment.

For part-time employees the rebate will be pro-rated based on full time equivalent hours of employment.

FIRST HOME OWNER GRANT (NEW HOMES) SCHEME

The First Home Owner Grant (New Homes) grant of $15,000 is extended for a further 2 years from 31 December 2013 to 31 December 2015. It will reduce to $10,000 from 1 January 2016.

The scheme was established to assist eligible first home owners to purchase a new home or build their home by offering a $15,000 grant. The grant applies to new homes only and does not apply to the purchase of an established home, vacant land, business premises or a holiday house.