As a small business owner, hiring new employees is an important business next step…The decision to add one extra person to the payroll is a huge leap of faith for some small companies. If you’re ready to hire new employees but you’re low on cash, an option you can consider is applying for a Small Business Grant.
For information about how you can improve your business’ financial position, including the pros and cons of applying for a grant, check out Financing Options For Small Businesses.
What Is A Small Business Grant?
A Small Business Grant is a government incentive designed to encourage businesses in NSW that do not pay payroll tax to employ new full-time, part-time and casual workers. Its purpose is to encourage small business owners to increase the number of full-time equivalent employees (NSW FTE) in your company by offering a one-off payment of $2,000 for each new full-time position you employ.
Are There Any Requirements?
However, there are requirements you must satisfy in order to be eligible for the grant. First, your business must:
- Have an active ABN. LawPath offers an easy-to-use ABN registration service to complete your application in less than 5 minutes; and
- Not have a payroll tax liability during the 12 month employment period of a new person as at 30 June of the financial year. This means, your business’ wages must not exceed the threshold deduction for the financial year, which is currently at $750,000 for June 2016 – July 2017. For more information about the threshold and current rate, check out the Office of State Revenue’s (OSR) website. For examples on how to calculate your monthly threshold, the OSR have samples.
Second, you must meet the following employment conditions:
- A person is employed in a position that is a new job. Also, the FTE must be maintained over a 12 month period from the creation of the new position;
- The employment commenced on or after 1 July 2015 and before 1 July 2019;
- The employment is maintained for a period of 12 months;
- Prior to creating a new position, your number of FTE employees must increase and be maintained over a 12 month period; and
- The services of the employee/s are performed wholly or mainly in NSW.
Please be aware as an employer you are required to register the employment of a person in a position that is a new job and advise the OSR of the number of FTE employees immediately before the position was filled.
How To Register For A Small Business Grant
Once you fulfil these requirements, you can proceed to make an online application within 60 days after the employment starts. You will have to come prepared with information, including business and new job details.
Lastly, you will receive a registration number and reference number for each new job.
What Documents Do I Need To Provide To Claim A Grant?
When you register for a grant, you do not have to provide supporting evidence. But when you make a claim for the grant, you must do so.
Supporting evidence may include:
- Most recent Business Activity Statement (BAS);
- Personnel or wage records;
- Workcover records;
- Most recent payslip before the anniversary date; and/or
- A PAYG Payment Summary relating to the financial year that falls within the 12 month grant period.
You will be paid the grant by Electronic Funds Transfer when you claim it on the 12 month anniversary date of the new job.
Take advantage of registering and claiming the Small Business Grant. It will give you access to finance and business opportunities that is integral to success. Create an employment agreement today.
Unsure where to start? Contact a LawPath consultant on 1800 529 728 to learn more about customising legal documents, obtaining a fixed-fee quote from our network of 700+ expert lawyers or to get answers to your legal questions.