Eligible businesses may receive an extra $200 a week in their back pocket when hiring new staff! The Federal Government made promises in the 2020-21 Federal Budget to help create jobs for Australians. Having passed through parliament in early November 2020, the JobMaker Hiring Credits gives eligible businesses up to $200 per week for each new eligible employee.
Aimed at addressing youth unemployment caused by quarantine measures, the JobMaker Hiring Credits will cost the Government in the vicinity of $4 billion. Ultimately encouraging businesses to hire young employees. JobMaker is fixed:
The ATO will pay quarterly in arrears for a 12-month period.
Along with basic scheme eligibility criteria such as holding an ABN, being registered for PAYG withholding and reporting through single touch payroll, additional eligibility criteria applies:
More information on employer eligibility can be found here.
If the business and employee are eligible, credits can be claimed for employees hired from 7 October 2020 to 6 October 2021. The first quarter of credits can be claimed from 1 February 2021. Payment periods are:
|Period||JobMaker Period||Claim Period|
|1||7 October 2020 – 6 January 2021||1 February 2021 – 30 April 2021|
|2||7 January 2021 – 6 April 2021||1 May 2021 – 31 July 2021|
|3||7 April 2021 – 6 July 2021||1 August 2021 – 31 October 2021|
|4||7 July 2021 – 6 October 2021||1 November 2021 – 31 January 2022|
|5||7 October 2021 – 6 January 2022||1 February 2022 – 30 April 2022|
|6||7 January 2022 – 6 April 2022||1 May 2022 – 31 July 2022|
|7||7 April 2022 – 6 July 2022||1 August 2022 – 31 October 2022|
|8||7 July 2022 – 6 October 2022||1 November 2022 – 31 January 2023|
To be eligible for the JobMaker hiring credit, the employee must:
It is important to note that employees for which the employer is receiving wage subsidies under another Commonwealth program are not eligible.
For more further instructions on how to register, visit the ATO website here.
We are here to support you. Keeping track of and understanding eligibility for Government stimulus measures can be difficult. Our team of accountants and business advisors can help you make the most of packages available, get in touch with us today.
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.