For businesses who have employed new full-time employees over and above their capacity across the 2019-20 & 2020-21 Financial Years, you may be eligible to claim a Payroll Tax - 'Employment Growth Rebate', up to the value of $20,000 per year.
As all employers or groups of employers are required to meet Payroll Tax requirements once the annual threshold of $1.3 million in total Australian employee taxable wages is exceeded, if eligible, this rebate could be a terrific option to improve your business cash-flow and financial position.
For eligible businesses, the rebate is available from 1 July 2019 to 30 June 2021, and will be attached and applied as part of the employers' 2019-20 & 2020-21 Payroll Tax Annual Returns.
How to Claim the Rebate?
To claim the rebate, eligible employers will need to provide certain information surrounding the new Queensland-based full-time position to the Office of State Revenue as part of their annual return - including records & information demonstrating eligibility.
These position details include:
- has responsibilities that require, on average, at least 35 hours of work per week to be undertaken for the employer;
- as at 30 June of the relevant year, is filled to capacity with one or more new Queensland employees;
- has been filled to capacity with one or more new Queensland employees for a continuous period of six-months ending on 30 June of the relevant year, or at least 245 days during the relevant year;
- created in the relevant year, or have been vacant for a continuous period of at least six-months.
What Records are Needed to be Kept & Provided?
Eligible businesses will need to keep the following records:
- A baseline total of all Queensland full-time positions as at 1 July 2019
- Monthly payroll tax employee counts on the last day of each month
- include all employees and persons deemed to be employees under the Payroll Tax Act 1971
- exclude all employee, and persons deemed to be employees, whose wages are wholly exempt from payroll tax in Queensland.
How is the Rebate Calculated?
The amount of the Employment Growth Rebate for the relevant Financial Year (2019-20 or 2020-21) is the lesser of:
- the amount for the relevant year calculated in accordance with:
- Annual payroll tax x (Net Employment Increase / Average total of all payroll tax employees)
For More Information
To discuss the Employment Growth Rebate regarding Payroll Tax or for more information on eligibility criteria for your business, please contact your Archer Gowland Redshaw adviser on (07) 3002 2699 / (07) 3221 4004.