Is your organisation eligible for the Employment Growth Rebate?

22 January 2020

Leisa Rafter, Partner, Tax |

A payroll tax rebate will be available to eligible organisations who can demonstrate over a full financial year that they have employed more than their starting level of full-time Queensland employees.

The rebate applies up to a cap of $20,000 and is calculated and subsequently claimed as part of the employer’s annual payroll tax return.

The rebate is available for eligible employers from 1 July 2019 to 30 June 2021.

Eligibility for the payroll tax rebate

To claim the payroll tax rebate, the new Queensland full-time position must:

  • Have responsibilities that require, on average, at least 35 hours of work per week
  • As at 30 June, be filled to capacity with one or more new Queensland employees
  • Be filled to capacity for a continuous period of at least 6 months ending on 30 June of the relevant year or at least 245 days during the relevant year
  • Have been created in the relevant year, or have been totally vacant for a continuous period of at least 6 months.

A new Queensland employee is an employee that:

  • Has a principal place of residence located in Queensland
  • Has not been an employee of the employer or another employer in the payroll tax group for at least 12 months.

For new Queensland full-time positions filled after 1 January 2020, employers are unable to claim the rebate for the 2019-20 financial year as the 6-month requirement won’t be satisfied. However, if the new Queensland full-time position remains filled to capacity as at 30 June 2021, the rebate can be claimed for the 2020-21 financial year.

What you need to do

To claim the payroll tax rebate, organisations 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 employees, and persons deemed to be employees, whose wages are wholly exempt from payroll tax in Queensland.

Rebate calculation method  

The amount of the payroll tax rebate for the relevant year is the lesser of:

a) The amount for the relevant year: Annual payroll tax amount × (Net employment increase ÷ Average total of all payroll tax employees);

b) $20,000.

More information on the employment growth repayment for payroll tax is available on the Queensland Government website. If you would like to discuss the employment growth repayment and how this may impact your organisation, please contact your local BDO adviser