On 5 November 2020, the New South Wales (NSW) Government announced its new “Jobs Plus Program” (Program). The $250m Program directly encourages domestic and international businesses to move their head office or expand their operations into NSW through significant payroll tax relief.
To access the Program, businesses will need to create at least 30 new net jobs in NSW by 30 June 2022. In return, businesses will be exempt from payroll tax for every new job created in NSW, for a period of up to four years. The Program will commence on 15 December 2020 and conclude on 30 June 2022.
NSW Premier, Gladys Berejiklian, has publicly stated that the Program is “an unashamed grab for head offices” and is designed to create or support up to 25,000 jobs in NSW by June 2022. While the NSW Government is hoping to bring new international businesses to NSW, it is clear that the Program is aimed at enticing existing, interstate businesses to either move their head office to NSW or, at least, grow their footprint in NSW.
While we await further details, the expectation is that there are no limits on the types of jobs or industries that may be entitled to qualify for the Program. Further details regarding the Program are expected to be announced in the NSW State Budget, to be handed down on 17 November 2020. The NSW Premier has hinted that the NSW State Budget may also contain additional payroll tax relief measures, though this will be confirmed in the Budget.
The Program is, no doubt, good news for any business contemplating a move to, or expansion into, NSW. What will be interesting to see is whether states such as Victoria and Queensland, which have traditionally competed with NSW as a location for head offices of multinational or multistate businesses, will announce similar incentives to keep or entice businesses to employ or remain in their respective states.
HOW CAN RSM HELP?
If you require any assistance with understanding your payroll tax obligations or entitlements to payroll tax incentives, please contact your local RSM contact.