Small Business Grant

The Small Business Grants (Employment Incentive) Act 2015 received assent on 29 June 2015. The Grant will provide employers up to $2,000 per new employee for businesses that don't pay payroll tax. The grant is designed to encourage the nearly 650,000 small businesses in NSW that do not pay payroll tax to hire new employees and expand their business.

The Grant will apply to new positions filled on or after 1 July 2015 and will continue until 30 June 2019. The Grant will be payable after the first anniversary of the hire of a new employee. The grant is a one off payment per new position and is paid when a claim is made on the 12 month anniversary of when the position was created.

For full-time employees the grant amount is $2,000. In the case of part time or casual employees, the grant amount will be pro-rated based on FTE hours of employment.

Businesses will be able to register for the Grant from 1 July 2015. Registration for the grant can be made:

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

WHAT BUSINESSES ARE ELIGIBLE?

To be eligible for the grant your business must:

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

WHAT EMPLOYMENT IS ELIGIBLE?

A business will receive the grant if all the following employment conditions are met:

• A 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 full-time equivalent (FTE) employees, prior to creating a new position must increase and be maintained over a 12 month period.
• The services of the employee are performed wholly or mainly in NSW.

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