What are JobMaker Hiring Credits and how do they work?

June 1, 2022
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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:

  • at $200 per week for eligible employees aged between 16 and 29; and
  • at $100 per week has been allocated to eligible employees aged between 30 and 35.

The ATO will pay quarterly in arrears for a 12-month period.

Employer Eligibility

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:

  1. There is an increase in total employee headcount from 30 September 2020 and the payrol system must indicate an increase by at least one employee placed after 7 October 2020.
  2. The business must be 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.
  3. The employer must not have claimed JobKeeper payments for the period that includes the claim for JobMaker.
  4. The business must keep adequate records of the hours paid to the employee.

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:

PeriodJobMaker PeriodClaim Period17 October 2020 – 6 January 20211 February 2021 – 30 April 202127 January 2021 – 6 April 20211 May 2021 – 31 July 202137 April 2021 – 6 July 20211 August 2021 – 31 October 202147 July 2021 – 6 October 20211 November 2021 – 31 January 202257 October 2021 – 6 January 20221 February 2022 – 30 April 202267 January 2022 – 6 April 20221 May 2022 – 31 July 202277 April 2022 – 6 July 20221 August 2022 – 31 October 202287 July 2022 – 6 October 20221 November 2022 – 31 January 2023

Employee Eligibility

To be eligible for the JobMaker hiring credit, the employee must:

  1. Commence work between 7 October 2020 and 6 October 2020.
  2. Have received JobSeeker Payment, Youth Allowance (other) or Parenting Payment for at least one of the previous 3 months.
  3. Work a minimum of 20 hours per week of paid work.
  4. Be in their first year of employment with the employer.
  5. Be employed for the period that the employer is claiming for them.

It is important to note that employees for which the employer is receiving wage subsidies under another Commonwealth program are not eligible.

How to register

Employers will only need to register once. This can be done through the ATO online services or the Business Portal.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.Source: ATO JobMaker Hiring Credit schemeThis 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.

June 1, 2022

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