Supporting Australian small business to create jobs.
With JobKeeper 2.0 now in place and on the countdown to end in March 2021, the Treasury announced a new initiative in the 2020-21 Federal Budget…. JobMaker!
Rules for the hiring credit scheme outline eligibility criteria and the ineligibility of sole traders. The program has been designed to assist 450,000 young people back to work. $4 billion has been allocated to businesses who hire eligible employees between now and 6 October 2022, with payments effective for 12 months after the hire date. Effectively requiring funding until October 2023.
JobMaker payments will be paid in what has been labelled ‘JobMaker Periods’ – three-month blocks over a 12 month period.
Entitlement for the JobMaker hiring credit payment will depend on if the entity notifying the commissioner of its election to participate:
In practice, that means an entity who elects to participate for the JobMaker period of 7 October 2020 to 6 January 2021, notifies the commissioner by 6 January 2021.
As with previous schemes, if an employer is entitled to receive a JobKeeper payment, they are unable to participate in JobMaker, unless JobKeeper participation has ceased.
JobMaker rules allow prohibition on JobKeeper fortnights that begin during a JobMaker period. Allowing an entity to have a single JobKeeper fortnight end at the start of JobMaker period.
This overlap will allow an entity to cease JobKeeper participation, and begin the JobMaker scheme without requiring a gap.
The following rules apply for entities to participate in JobMaker:
The JobMaker scheme will allow entities who qualify to receive payments for eligible additional employees.
Additional employees must:
More information on the scheme can be found here.
This article is published by R J Sanderson and Associates Pty Ltd ABN 71 060 299 783. This article contains general information only and is not intended to represent specific personal advice (Accounting, taxation, financial or credit). No individual personal circumstances have been taken into consideration for the preparation of this material. It is recommended that you obtain your own personal professional advice before making any financial or business decision.