To encourage employment growth, the South Australian government is currently offering a Job Accelerator Grant of up to $10,000 ($5,000 each year for two years) for each new full-time equivalent job created between 1 July 2016 and 30 June 2018.
The Grant is available for South Australian employers that are liable for payroll tax in South Australia, and have total Australian wages of less than $5 million.
For small businesses and start-ups, a Job Accelerator Grant of up to $4,000 ($2,000 each year for two years) is offered for each new employee hired between 1 July 2016 and 30 June 2018. The Grant of up to $4,000 is available to businesses with total Australian wages below the payroll tax free threshold (currently, $600,000 in South Australia) and for most organisations that are exempt from payroll tax. (Find out more: https://www.revenuesa.sa.gov.au/grants-and-concessions/jobacceleratorgrantscheme)
We would be pleased to assist employers with determining eligibility and claiming this incentive.
Furthermore, in the past few months, each of the different jurisdictions have released updates on their payroll tax-free thresholds and incentives to promote employment and economic growth for the 2016-17 year and beyond.
Please find below a summary for each jurisdiction affected by the updates.
Payroll tax concessions to encourage employment
In Victoria, payments of $5,000 and $7,000 are available for hiring dairy industry workers and retrenched automotive workers. A further payment of $4,000 is available if employers provide these workers with accredited training. (Find out more: http://www.sro.vic.gov.au/backtowork) A payroll tax exemption will also be introduced for wages paid by employers to a displaced apprentice or trainee who recommences their apprenticeship or traineeship on or after 1 July 2016. (Find out more: http://www.sro.vic.gov.au/exempt-wages-and-organisations)
In New South Wales, as part of Jobs Action Plan, the payroll tax rebate has increased from $5,000 to $6,000 for each additional employee that a business with less than 50 full-time equivalent employees takes on. Where an employer is eligible under the Jobs Action Plan, $2,000 is payable on the first anniversary and $4,000 is payable on the second anniversary of employment. The Fresh Start Support rebate, which is a one off amount of $1,000 payable on the first anniversary, continues to be available. (Find out more: http://www.osr.nsw.gov.au/taxes/payroll/jap) An exemption is also available for wages paid by non-profit organisations to apprentices and trainees. A rebate is available for apprentices, trainees and group apprenticeship or traineeship schemes. (Find out more).
In Victoria, the payroll tax tax-free threshold of $550,000 will progressively increase over four years, commencing 1 July 2016. The threshold for the 2016-17 year increased to $575,000. In 2017-18, the threshold will increase to $600,000, 2018-19 to $625,000, and 2019-20 to $650,000. (Find out more: http://www.sro.vic.gov.au/news/2016-17-victorian-budget-changes)