Small Business Grants

Recently we ran an article in relation to the Jobs Action Rebate, an initiative of the OSR to provide payroll tax rebates for businesses that pay payroll tax and have less than 50 employees.

This month we are providing information about the Small Business Grant (SBG), a similar initiative for small business not liable for payroll tax. The SBG is an incentive offered by the OSR to small businesses to increase their staff levels and provide more jobs in NSW.

Who is eligible?

Businesses that have an ABN and are not liable for payroll tax are eligible.  The grant is available for any new employees that increase the number of full time employees (FTE) in a business.  The employees must work wholly or mainly within NSW and the position must be filled for 12 months, with no more than a 30 day vacancy in total over the period of eligibility.  Apprentices and trainees are also eligible even though they may be receiving assistance elsewhere.

Who is not eligible?

Contractors and agency workers who have worked in the business in the last 12 months are not eligible.  Neither are existing employees or sole traders.  Businesses that are exempt from payroll tax under Part 4 of the Payroll Tax Act 2007 are also not eligible to receive the SBG.

How does it work?

The grant is paid at the first anniversary of the employee’s start date with the entity.  The grant is a one-off payment of $2,000 per new employee at their anniversary date.  Part time and casual employees are also able to receive the grant, however the payment will be pro-rated based on hours worked.

Employees eligible for the grant must be registered with the OSR, providing details online.  Once the anniversary date is reached the employer must provide substantiation to prove that the position was filled for the period and that it increased the number of FTE in the business.  Forms of substantiation include recent payslips and copies of PAYG summaries provided to the ATO.

The scheme is closing on 30 June 2019 and all applications must be received by 30 September 2019.  The scheme is also accepting back dated applications, so if you have a new position in your company that opened up after 1 July 2015, you can still apply.

For more information or to register new employees for the Grant, go to the OSR website and click on the Small Business Grant tab.  The website address is www.osr.nsw.gov.au