Getting the right advice on payroll tax rebates

By April 12, 2017 February 21st, 2020 No Comments

Up to $6,000 rebate per new employee


One of the most unpopular state revenue streams in New South Wales is the notoriously bureaucratic payroll tax targeting businesses with $750,000 + annualised salary bill.

In NSW, the payroll tax rate is set at 5.45% but there are rebates which can offset the financial impact… if you know where to look for them. Your business can save up to $6,000 per employee under the Job Action Plan Rebate Scheme.


Why is the payroll tax bad for business?

Many employers and economic commentators have called for payroll tax to be axed, saying that it impacts on employment growth and overall performance. Some have gone as far as saying that it is leading to a Bonsai Economy, with everything in miniature and shackled by over regulation.


What does that all mean?

Simply put, employers with an annual salary bill of over $750k pay a tax to the state government monthly. The trouble is that in this sort of climate businesses often overlook the hidden rebates that the state and federal governments bury in budgetary measures. One of these is the Job Action Plan Rebate (JAP) Scheme, which has recently been restructured and extended. The scheme will now cover jobs commencing on or after 1 July 2011 and before 1 July 2019.

Amount of rebate payable per employee

New job start dateFirst anniversarySecond anniversary
1 July 2011 – 30 June 2013$2,000$2,000
1 July 2013 – 30 July 2016$2,000$3,000
31 July 2016 – onwards$2,000$4,000


What are the requirements for my business to qualify?

Well, the first thing you need to do is identify if this scheme is applicable to you and your business. The revamped JAP scheme focuses on businesses with a complement of up to 50 employees and can provide rebates of up to $6,000 for every new employee engaged. There are other terms and conditions including:

  • Employer must be registered and already paying Payroll Tax in New South Wales
  • Payout time of rebates in relation to the length of engagement of the employee
  • For part timers, the rebate is pro-rated
  • The rebates are not applicable before 1 July 2011
  • The employer cannot go over the 50 employee threshold

If you go through the right channels and get the right professional advice, your business can save up to $6,000 on each new employee that you take on. There are other schemes that are designed to stimulate expansion but it takes a keen eye to find them and ultimately, get results. This is where the professionals come in.


Getting the right advice from Dexterous

Here at Dexterous, we believe that growth should always be a central tenet of business. Opportunities for growth and increasing employment should be explored, and we are happy to guide you on that path. Our team of experts can give you professional advice on how to take advantage of this scheme to re-invest in the growth of your business.

Get in touch with us TODAY to find out what rebates your business is entitled to.


Telephone: 1300 996 928