We expect many employers to be interested in the JobMaker Hiring Credit, particularly as JobKeeper ceases in a couple of months.

We’re not accountants, so this isn’t accounting/financial advice, but as payroll and human resources experts, we know this incentive will be pivotal for businesses looking to hire this year.

The JobMaker Hiring Credit is currently available to eligible employers, for eligible employees. The first claim period opens from 1 February 2021, for employers who have registered for the scheme and meet the other eligibility requirements.

The scheme will provide:

  • $200 a week – for each eligible additional employee aged 16 to 29 years old inclusive.
  • $100 a week – for each eligible additional employee aged 30 to 35 years old inclusive.

Eligible Employers

From the ATO, an eligible employer must:

  • have registered for the JobMaker Hiring Credit scheme
  • either
    • operates a business in Australia
    • is a not-for-profit organisation operating in Australia
    • is a deductible gift recipient (DGR) endorsed either as a public fund or for a public fund you operated under the Overseas Aid Gift Deductibility Scheme (DGR item 9.1.1) or for developed country relief (DGR item 9.1.2)
  • holds an Australian business number (ABN)
  • is registered for pay as you go (PAYG) withholding
  • has not claimed JobKeeper payments for a fortnight that started during the JobMaker period
  • is up to date with income tax and GST returns for the two years up to the end of the JobMaker period for which they are claiming
  • satisfies the payroll increase and the headcount increase conditions
  • satisfies reporting requirements, including up to date Single Touch Payroll (STP) reporting
  • does not belong to one of the ineligible employer categories.

Eligible Employees

Where an employer is eligible, an employee is then eligible in the following circumstances, again, from the ATO:

  • are an employee of the entity during the JobMaker period
  • are aged 16–35 years old when they started employment
  • started employment on or after 7 October 2020 and before 7 October 2021
  • worked or have been paid for an average of at least 20 hours per week they were employed in the JobMaker period
  • have completed a JobMaker Hiring Credit employee notice for the employer
  • have not already provided a JobMaker Hiring Credit employee notice to another current employer
  • received one of these payments for at least 28 consecutive days (or 2 fortnights) in the 84 days (or 6 fortnights) prior to starting employment
    • JobSeeker Payment
    • Parenting Payment
    • Youth Allowance (except if they were receiving the allowance because they were undertaking full-time study or are a new apprentice).

 

If you’re not sure how this incentive can best be accessed for your business, or how to manage the payment in relation to your payroll obligations, contact our team ASAP.

 

*This is general information only and doesn’t take your specific circumstances into account.