Last week’s South Australia (SA) Budget included an exciting opportunity for employers to invest in SA growth, by providing a grant of up to $10,000 for each additional employee hired since 1 July 2016. An amount of up to $4,000 is also available to small business and start-up employers (those not subject to payroll tax).
To be eligible for the Job Accelerator Grant Scheme (“JAGS”), employers must have payrolls (subject to payroll tax), of $5,000,000 or less nationally. The employer can’t be a government body or a Group Training Organisation, but charities and not for profits can be eligible employers.
To receive the grant, the employee can work on a full-time, part-time or casual basis, but not on a seasonal basis. Employment must be maintained for a period of at least 2 years for the full grant, or a minimum of 1 year to be eligible for a partial grant.
To qualify, an employer must create new jobs in SA, where the number of FTE employees increases and is maintained over a 1 to 2 year period from the creation of the new position. For small business and start-ups, the new employee must work at least 22 hours per week on average during the previous 12 months to qualify.
In our experience with assisting clients claim the NSW Jobs Action Plan (JAP) rebate which has been running for several years, we have found employers experience the following challenges:
KPMG has developed a NSW JAP claim tool to streamline the process, which we are adapting for the SA Job Accelerator Grant Scheme, so watch this space.
If you have any questions, please contact your local employment taxes advisor.