There is established by this Act a rebate scheme for payroll tax paid or payable by employers who employ people in new jobs on or after 1 July 2011.
(1) An employer is entitled to a rebate under the rebate scheme in respect of the employment of a person if the employment is eligible employment.(2) The entitlement to a rebate is subject to the other provisions of this Act.
Employment is eligible employment if:(a) a person is employed (as a full time employee or part time employee) in a position that is a new job, and(b) the employment commences on or after 1 July 2011, and(c) the employment is maintained for the minimum employment period, and(d) the services of the employee are performed wholly or mainly in New South Wales, and(e) the employment satisfies any further eligibility criteria set out in the rebate criteria, and(f) the employment is not excluded from the rebate scheme.
(1) A position is a new job if the employment of a person in that position results in a sustained increase in the employer’s full time equivalent employees.(2) The employment of a person results in a sustained increase in an employer’s full time equivalent employees if the number of full time equivalent employees of the employer on both the first and second anniversary of the date the eligible employment is claimed to commence is higher than the number of full time equivalent employees of the employer on that commencement date.(3) A rebate may be paid on a claim before a determination can be made as to whether the employment has resulted in a sustained increase in an employer’s full time equivalent employees.(4) However, it is a condition of the payment of a rebate in respect of any employment that the employment results in a sustained increase in the employer’s full time equivalent employees, subject to subsection (5).(5) The Chief Commissioner may pay a rebate claimed in respect of a year of employment even if there is not a sustained increase in an employer’s full time equivalent employees if satisfied that the increase did not occur because of circumstances beyond the employer’s control.(6) The Chief Commissioner may impose conditions on the payment of the rebate in such a case.(7) In such a case, this Act applies as if the rebate had been paid in respect of the employment of a person in a new job.(8) A claimant is required to repay an amount paid by way of rebate if a condition imposed by or under this section is contravened.
9 Calculation of number of full time equivalent employees
(1) The number of full time equivalent employees of an employer on a date is to be calculated as follows:
where:F is the number of full time employees of the employer on the relevant date.
A is the total number of hours worked in the employer’s preceding pay period by all part time employees of the employer employed on the relevant date.
B is the average number of hours worked in the employer’s preceding pay period by all full time employees of the employer employed on the relevant date.
(2) To calculate the number of full time equivalent employees of an employer on the date eligible employment is claimed to have commenced, in connection with a claim for a rebate for that employment, the employee in respect of whom the rebate is claimed and the hours worked by that employee are to be disregarded.(3) To calculate the average number of hours worked by full time employees of an employer, overtime is to be excluded.(4) In this section, the preceding pay period is the last pay period to end on or before the date for which the calculation is being made.
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(1) The minimum employment period is a period of 2 years starting on the date the eligible employment is claimed to commence.(2) Employment is maintained for the minimum employment period if during the minimum employment period there is always a person employed in the position in respect of which the rebate is claimed.(3) For the purpose of determining whether employment is maintained for the minimum employment period, a vacancy in a position is to be disregarded if the number of days vacant does not exceed the maximum vacancy period.(4) The maximum vacancy period is a total of 30 days in each year of employment in respect of which a rebate is claimed.(5) A rebate may be paid on a claim before a determination can be made as to whether the employment has been maintained for the minimum employment period.(6) However, it is a condition of the payment of a rebate in respect of employment that the employment is maintained for the minimum employment period, subject to subsection (7).(7) The Chief Commissioner may pay a rebate in respect of a year of employment even if there is a vacancy in the position that exceeds the maximum vacancy period if satisfied that the length of the vacancy concerned is due to circumstances beyond the employer’s control.(8) The Chief Commissioner may impose conditions on the payment of the rebate in such a case.(9) A claimant is required to repay an amount paid by way of rebate if a condition imposed by or under this section is contravened.
(1) The Minister may, by order published on the NSW legislation website, determine further criteria for the payment of rebates under this Act (the rebate criteria).Note. Section 43 of the Interpretation Act 1987 provides that a power to make an order includes a power to amend or repeal any order made in exercise of that power.(2) Without limiting subsection (1), the rebate criteria may provide for:(a) further criteria for eligibility for a rebate, and(b) any other matter that is required or permitted to be dealt with by the rebate criteria under this Act.(3) The rebate criteria may confer functions on the Chief Commissioner.(4) The rebate criteria must not be inconsistent with this Act or the regulations.(5) An amendment to the rebate criteria may, if the amendment so provides, extend to employment that commenced before the date of publication of the amendment on the NSW legislation website.(6) However, any such amendment does not affect an employer’s eligibility for a rebate in respect of a year of employment that started before the date of publication of the amendment, except by agreement between the Chief Commissioner and the employer concerned.(7) Subsection (6) does not apply in respect of an amendment to the rebate criteria to the extent that it appoints a scheme closure date.
(1) The employment of a person by an employer is excluded from the rebate scheme if:(a) the person was employed by the employer at any time within the period of 12 months before it is claimed the eligible employment, or the employment of the person in the position concerned, commenced, or(b) the employer (the current employer) is a member of a group (within the meaning of Part 5 of the Payroll Tax Act 2007) and the person was employed by another member of that group within 12 months before employment with the current employer commenced, or(c) the person’s employment with the employer is a continuation of employment with another employer, or(d) any wages paid or payable by the employer to the person are not taxable wages (within the meaning of the Payroll Tax Act 2007), or(e) any wages paid or payable by the employer to the person are exempt wages (within the meaning of the Payroll Tax Act 2007), or(f) the employer is entitled to a rebate of payroll tax paid in respect of any wages paid or payable to the person under the Payroll Tax Act 2007, or(g) a rebate, subsidy, or other assistance is payable to the employer in respect of the employment of the person by the State, or(h) the employer is taken to be the employer of the person under Division 7 of Part 3 of the Payroll Tax Act 2007 (which relates to contractors), or(i) the employer is taken to be the employer of the person under Division 8 of Part 3 of the Payroll Tax Act 2007 (which relates to employment agents), or(j) the employer is the Crown in right of New South Wales or in any of its other capacities or a body representing the Crown in right of New South Wales or in any of its other capacities, or(k) the employer is a public, local or municipal body or authority constituted under the law of the Commonwealth or of a State or Territory.(2) A person’s employment with an employer (the new employer) is a continuation of employment with another employer (the previous employer) if:(a) the person was, within 12 months before the date on which the person commenced employment with the new employer, employed by the previous employer in a business or undertaking, and(b) that business or undertaking has been the subject of a merger with the business or undertaking of the new employer or has been taken over or otherwise acquired by the new employer.(3) To avoid doubt, this section applies to the employment of any person in the position for which the rebate is claimed during the minimum employment period.(4) Accordingly, if any person employed in the position during the minimum employment period is a person whose employment is excluded from the rebate scheme, the employment is not (and is taken never to have been) eligible employment.(5) This section is subject to any exceptions provided for by the rebate criteria.(6) The rebate criteria may specify other circumstances in which the employment of a person is excluded from the rebate scheme.
(1) The rebate criteria may appoint a date as a scheme closure date.(2) A date may be appointed as a scheme closure date for the metropolitan area or the non-metropolitan area, or both.(3) For the purposes of this Act, the scheme closure date for an area is:(a) the date appointed by the rebate criteria as the scheme closure date for the area, or(b) if no date is appointed by the rebate criteria as the scheme closure date for the area, 30 June 2013.(4) An order appointing a scheme closure date must be published on the NSW legislation website no less than 30 days before the scheme closure date so appointed.Note. A person cannot apply to be registered as a rebate claimant in respect of the employment of a person after the scheme closure date for the area in which the person is employed.