New South Wales Small Business Grant

The Small Business Grant is designed to encourage small businesses in New South Wales that do not pay payroll tax to hire new employees and expand their business. 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.

How much is the grant?
The grant is a one off payment for each qualifying 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 and it will be prorated based on FTE hours of employment in the case of part-time or casual employees.

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, and 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.

What is a new job?
A new job is created if the number of your full-time equivalent (FTE) employees increases and that FTE is maintained over the following 12-month period. If your FTE falls below the required number, for more than 30 days any time during the 12 months, the Chief Commissioner may refuse to pay the grant. When registering a new job for the grant the Small Business Grant (Employment Incentive) online application will assist you in calculating your FTE. You can also manually calculate your FTE

What types of employment are excluded from the grant?
The employment of a person by an employer is excluded from the grant for a number of reasons, including where:

  • the person engaged by your business is not considered a common law employee
  • the person was employed by the employer claiming the grant in the previous 12 months
  • any wages paid by the employer to the person are exempt wages within the meaning of the Payroll Tax Act 2007. Exempt wages are predominately those paid by non-profit organisations that are religious institutions, charitable organisations or organisations set up for the public benefit. Some wages are exempt based on the circumstances in which they are paid. This includes wages paid to employees on maternity, paternity or adoption leave or on military leave.
  • a grant, subsidy or other assistance is payable to the employer for the employment of the person by the State

Registration & claiming the grant
Registering for the grant was made available from 1 July 2015 via the online application. You are required to register the employment of a person in a position that is a new job and advise of the number of FTE employees immediately before the position was filled. Registration for the grant can be made within 60 days after the employment commences.

You can claim the grant if the employment is eligible employment through the online application within 60 days after the 12 month anniversary date

No supporting evidence is required when you register for the grant, however, you must, provide supporting evidence when claiming for the grant. This may include but is not limited to:

  • Most recent Business Activity Statement (BAS),
  • Personnel or wage records, or
  • Workcover records.

Payment
The grant is paid by Electronic Funds Transfer when claimed on the 12 month anniversary date of the new job.

An Office of State Revenue Small Business Grant Roadshow begins on Monday, 17 August 2015 and will run for 2 weeks. View the Roadshow schedule.