Regional Employment Grant eligibility for Australian businesses

Many Australian owners planning a trans-Tasman expansion see the Regional Employment Grant as a way to make a first Auckland or Wellington hire less costly. This New Zealand government co-funding programme supports businesses creating additional permanent positions. It is not a general payroll subsidy for every recruit, and Australian registration alone does not make an applicant eligible.

Who qualifies depends on the New Zealand entity or operation, the region where the work sits, company size, the number and type of roles, and whether the employer can meet co-contribution and evidence requirements. Common tests include registration in New Zealand, new full-time-equivalent jobs lasting at least 12 months, and proof that the positions would not otherwise be created. Current funding tiers and eligible expenditure must be checked against the relevant regional round.

What the grant is designed to fund

Regional Employment Grant support is intended to create sustainable employment rather than provide unrestricted business cash. Depending on the funding round, eligible expenditure may cover part of the wages for new roles, recruitment and onboarding, training, or equipment directly required by those positions. Routine operating expenditure, working capital and costs unrelated to the new hires are usually excluded.

Funding has commonly been structured into tiers. Published criteria have distinguished smaller projects creating one to five jobs, mid-sized projects creating six to 20, and larger projects creating 21 or more, sometimes with employee-count ceilings. Government co-funding has generally been capped at a proportion of total project costs, leaving the business to contribute the balance. Regional criteria and funding caps can change, so an applicant should confirm them before committing to a hiring budget.

Who can get the Regional Employment Grant

Eligibility begins with a genuine New Zealand business operation in a participating region. A newly incorporated company may qualify, as may an established small or medium-sized enterprise, provided it meets the relevant tier and employment targets. An Australian-owned New Zealand subsidiary can apply, although the assessment may consider the size and activities of the wider corporate group. An Australian entity that employs people only from Australia would generally not satisfy the regional job requirement.

The employment test is equally important. Applicants normally need to create new permanent full-time-equivalent positions, with full-time work often meaning at least 30 hours a week and employment lasting at least 12 months. Each position must be genuinely additional to the business’s current operations. Roles already filled, temporary contracts, casual shifts and hires that would proceed without assistance may not qualify, and the same employment costs generally cannot also be funded through another government programme.

A strong application also explains why the positions are needed in that region. Relevant considerations can include local unemployment, skill shortages, difficulty recruiting locally and the broader economic benefit of the project. Jobs merely transferred from an existing New Zealand site, or expansion designed mainly to capture the grant rather than meet sustainable demand, are likely to attract close scrutiny.

How applications are assessed

Applications generally need a business case rather than a short request for money. Useful evidence includes a baseline of current employees, job descriptions, proposed hours and duration, recruitment plans, supplier quotations, a detailed budget, confirmation of the co-contribution and forecasts showing how the roles remain commercially sustainable after assistance ends.

Assessors look for employment additionality, regional benefit, value for money and the capacity to deliver. A local letter supporting the project can help explain the shortage or commercial opportunity, but it does not replace financial evidence. The application should also show that the employer can meet payroll obligations before receiving reimbursement or milestone payments. Funding may be released in stages, with reporting required and repayment possible if agreed job commitments are not maintained.

What Australian applicants need to consider

Australian-owned companies should establish the legal and operational structure before applying. An Australian Business Number or ASIC registration does not replace the need for a New Zealand business number, registration with the New Zealand Companies Office, Inland Revenue obligations and appropriate employment agreements. A parent company claiming support for positions operated by a separate entity also risks failing the additionality test. Creating a New Zealand presence solely to obtain a subsidy can expose the group to repayment or compliance issues.

Local employment conditions materially affect the budget. Minimum wage, annual leave, public holidays, KiwiSaver contributions and termination protections in New Zealand differ from Australian superannuation, Fair Work entitlements and state awards. Salary expectations in Auckland may also differ from those in Sydney or Melbourne, while a remote employee remaining in Australia would not ordinarily count as a new job located in the region. Both countries collect GST, but registration thresholds, reporting and tax treatment differ, so this co-funding should not be modelled as an Australian tax credit.

For a company using trans-Tasman partnerships between Sydney, Melbourne and New Zealand’s screen hubs, the centre’s guide to screen industry funding can help identify support for development or production activity, although that is separate from employment co-funding.

Check eligibility and submit a complete application

Before applying, identify the legal applicant, participating region, proposed job count, employment duration, baseline workforce, total project cost and available co-contribution. Check whether the new roles meet the current definition of permanent full-time work and whether the proposed expenditure is eligible. Applicants should obtain the relevant regional economic development agency’s latest guidelines rather than relying solely on an old funding table.

Use the Grant Finder filters to compare this scheme with other options for setup, equipment, research and development, hiring or energy efficiency. Then confirm the requirements with the responsible regional agency and obtain accounting advice on GST and the co-contribution. Check the current regional criteria, assemble the evidence pack and submit a complete application through the prescribed channel.