The JobMaker Hiring Credit is an incentive for eligible businesses to employee additional eligible young (16 to 35-year-old) job seekers.
Am I an eligible business?
To be eligible to receive the JobMaker hiring credit, you need to:
- Be an ABN holder
- Ensure you tax lodgements are updated
- Be registered for PAYG
- Be reporting through Single Touch Payroll
In addition, you must also demonstrate:
- An increase in headcount, by number, above the baseline date, 30 September 2020
- An increase in payroll, by dollars, above the baseline quarter, this the 92 days ending 6 October 2020
- These dates will be adjusted in the second year of the scheme
As an example, if your baseline headcount is seven employees on 30 September 2020 and your headcount for the first JobMaker period (6 January 2021) is ten employees, your headcount increase number is three.
If you cannot show an increase over the above dates by the last day of the JobMaker period, you are not eligible. If an employee ceased employment one day before the last day of the JobMaker period, they are not included in the headcount.
The scheme is available to new businesses and those with no current employees. For these, your base headcount and payroll figure is zero.
What is an eligible employee?
An eligible employee:
- Works an average of 20 hours/week over the period (minimum)
- Is aged 16 to 35
- Received JobSeeker Payment, Youth Allowance (Other) or Parenting Payment for at least two fortnights out of the six before you hired them
- Has completed the employee notice ATO form
What will my business receive?
- 16- to 29-year-olds – $200 per week
- 30- to 35-year-olds – $100 per week
- Payments are made three months in arrears over twelve months
The amount you can receive for any JobMaker period is limited to the total increase in payroll over your baseline.
The credit is available for new jobs created between 7 October 2020 and 6 October 2021, for twelve months, up to 6 October 2022.
If I am eligible, what do I need to do?
If you think you may be eligible, we suggest registering now. You need to register before making a claim but do not need to register before hiring eligible employees.
You will need to provide your baseline employee headcount on 30 September 2020 and your baseline payroll amount for the quarter ending 6 October 2020.
We are aware that Xero will have a JobMaker hiring credit item under Payroll however at the time of penning this article, it is yet to be launched.
Key JobMaker dates
- 7 October 2020 – scheme started
- 6 December 2020 – registrations opened
- 1 February 2021 – first claim period opened
- 30 April 2021 – first claim period closes
- 6 October 2022 – scheme ends
Would you like to know more?
- Visit the ATO website
- Have a chat with your accountant on 1300 ARABON to learn more
