What is JobMaker?
JobMaker is a credit available to eligible businesses for hiring additional employees (not if you are replacing someone who left). The credit isn’t passed onto the employee, it is an incentive for the employer to support wage costs, to support a stronger economic recovery and bring more Australians back to work. The hiring credit is available for jobs created from 7 October 2020 until 6 October 2021. The credit provides:
- $200 per week for new employees between 16 to 29 years of age
- $100 a week for new employees between 30 to 35 years of age.
If your business and employee are eligble, the credits can be claimed from 7 October 2020 to 6 October 2021. The credit will be claimed quarterly in arrears by the employer from the ATO from 1 February 2021. Payment is from the start date of the employee for 12 months.
Are you eligible for JobMaker?
The EMPLOYER must;
- Hold an Australian Business number (ABN).
- Be up-to-date with their tax lodgement obligations.
- Be registered for Pay As You Go (PAYG) withholding
- Reporting through single touch payroll (STP).
- Keeps adequate records of paid hours worked by the employee they’re claiming for.
- Another employer is not claiming JobMaker for the same employee.
For the employer to be eligible, new EMPLOYEES must;
- Have received the JobSeeker Payment, Youth Allowance or Parenting Payment for at least one month within the three months before they were hired.
- Be between 16 and 35 years of age at the time their employment started.
- Have worked at least 20 hours per week on average for the full weeks employed for the period being claimed. If the employee worked less than 20 hours, the employer cannot claim JobMaker for them during that period.
- They started work between 7th of October 2020 and 6th of October 2021.
- Have their first year of employment with the employer.
- The employer is not receiving other forms of assistance from the Commonwealth Government for the employee. Example, JobKeeper or apprenticeship subsidy.
- Meet a similar test based on the length of time in employment that started and/or stopped employment during a quarter
Can the business get JobKeeper and JobMaker?
No. If your business exits JobKeeper and is no longer receiving JobKeeper payments for any employees or business participants, the business can then start receiving JobMaker credits (if eligible). The business is eligible for the hiring credit in the reporting period following your JobKeeper exit date.
For more information or to discuss JobMaker further with one of our accountants, feel free to call our office on 9528 5863.
**Further eligibility conditions will apply to employers based on the employer’s headcount and payroll on 30 September 2020. These conditions ensure that employers claim credits for additional jobs created rather than for replacing existing employees. Government entities or agencies, banks and other institutions subject to the bank levy, businesses in liquidation, and foreign Government entities (unless a resident entity), are unable to access JobMaker.