JobMaker Hiring Credit - what it is and who is eligible to apply?
The JobMaker Hiring Credit was introduced by the Australian Government to provide incentive for employers to hire young job seekers by delivering a payment to employers to help support the new employee’s wages cost.
The scheme will see eligible employers to be able to access up to $200 per week for each eligible additional employee aged 16 to 29 years, and up to $100 per week for each eligible additional employee aged 30 to 35 years.
What are the eligibility rules?
The new employee must:
- Be aged between 16 to 35 years at the start of their employment.
- Have received the JobSeeker Payment, Youth Allowance or Parenting Payment for at least for at least 28 consecutive days within the 84 days prior to being employed in their new position.
- Have worked at least 20 paid hours per week on average for the full weeks they were employed during the reporting period.
- Complete an employee notice for JobMaker Hiring Credit supplied by their employer.
- Have not completed a JobMaker employee notice for another employer they are still working for.
The employee must not:
- Be an employee for whom the employer is receiving another Commonwealth wage subsidy such as an apprenticeship or traineeship wage subsidy.
- Be an employee for whom another employer is claiming JobMaker Hiring Credit.
The employer must:
- Have an Australian Business Number (ABN).
- Be registered for pay as you go (PAYG) withholding.
- Report through Single Touch Payroll (STP).
- Be up to date with their tax lodgement obligations.
Meet the following additionality criteria each month before claiming a credit:
- the total employee count must increase after 30 September 2020
- payroll must also increase for the reporting period, as compared to the three months to 30 September 2020
- Claim the credit in respect of an eligible employee.
- Have kept adequate records of paid hours worked by the eligible employee.
- Have a minimum of one existing employee.
- Increase both their total employee headcount from 30 September 2020 and increase their payroll for the reporting period (7 October 2020 to 6 October 2021) compared to the three months to 6 October 2020.
What are the key dates?
30 September 2020 - The reference date for comparison of increased employee headcount and payroll (as compared to the previous three months)
7 October 2020 - The date from which credit claims are valid (employees must commence employment after this date)
7 December 2020 - Registrations open for eligible employers via ATO online services
6 January 2021 - End of the first reporting period
1 February 2021 - The date from which the first credit can be claimed quarterly in arrears from the ATO, for new jobs created between 7 October 2020 and 6 January 2021
6 October 2021 - The end of the eligibility period for credit claims (employees must commence before this date)
For further information you can download The JobMaker Hiring Credit Guide here
If you wish to further discuss this, please do not hesitate to contact one of your trusted Advisors at Cordner Advisory.
Cordner Advisory - Your Business Advisory, Accounting & Tax Specialists. Catering for clients all across Australia, from the golden beaches of the Gold Coast and Sunshine Coast to the capital cities such as Brisbane, Sydney and Melbourne