The O’Farrell Government’s move to rebate payroll tax for new jobs is expected to boost NSW employment.

The legislation, which was passed yesterday, will entitle registered businesses to claim $4000 back when they employ a new worker, who must be employed with them for two years. The scheme gets underway next month.

Australian National Retailers Association CEO Margy Osmond said today “Payroll tax is a vexed issue for retailers, and while we would prefer to see the payroll tax in NSW reduced, this legislation will encourage employers to take on new workers, which is good news for the state.

“It is particularly encouraging that the government has moved quickly to bring this legislation in and we hope it is the beginning of some fair and frank discussions about the tax. Businesses in NSW pay some of the highest rates of payroll tax in the country,” Mrs Osmond said.

ANRA however warned that while the Jobs Action Plan will have a positive impact on jobs growth, it is important that businesses not be unfairly loaded with red tape in signing up for, and meeting the obligations to, get the rebate.

“Retailers deal with a lot of red tape running their businesses and this new legislation should not add an additional burden to them. We will look forward to working with the NSW government to ensure this does not occur,” the industry body said.