The JobMaker Hiring Credit scheme is an incentive for businesses to employ additional young job seekers aged 16–35 years who were previously receiving financial assistance from the government.
The aim of the JobMaker Hiring Credit scheme is to subsidise an increase in your number of employees, not reduce the cost of replacing existing employees. As an employer, to receive payments you must prove you are creating new employment positions for eligible employees. The amount you get is based on the number of eligible employees you have hired. If your overall headcount does not change, or it decreases, you will not be eligible for a payment.
Employers can claim payments for eligible additional employees who commence employment between 7 October 2020 to 6 October 2021. The credits can be claimed for up to 12 months from their employment commencement date.
Registrations for the scheme are now open and eligible employers will be able to claim the credits from the ATO in arrears from 1 February 2021.
Employers are eligible if they:
- have registered for the JobMaker Hiring Credit scheme
- operate a business or not-for-profit organisation in Australia or are a deductible gift recipient (DGR)
- hold an ABN
- are registered for PAYG withholding
- have not claimed the JobKeeper Payment for a fortnight that started during the JobMaker period (see below)
- have no overdue ATO lodgments
- satisfy the payroll increase and the headcount increase conditions
- satisfy reporting requirements, including up to date Single Touch Payroll (STP) reporting
- do not belong to one of the ineligible employer categories (e.g. major banks, government bodies, businesses in liquidation)
Employees are eligible if they:
- are an employee of the entity during the JobMaker period
- started employment from 7 October 2020 to 6 October 2021
- are aged 16-35 years old when they started employment
- worked or have been paid for an average of at least 20 hours per week they were employed in the JobMaker period
- have given a JobMaker Hiring Credit employee notice to the employer
- have not already provided a JobMaker Hiring Credit employee notice to another current employer
- received the Parenting Payment, Youth Allowance (unless they were undertaking full-time study or were a new apprentice) or JobSeeker Payment for at least 28 consecutive days (or 2 fortnights) in the 84 days (or 6 fortnights) prior to starting employment.
Ineligible employees include:
- Business participants (e.g. sole traders, directors)
- Close associates of business participants (e.g. spouse, children)
- Contractors and sub-contractors (as they are not employees)
- Employees who were formerly working on as a contractor during the period 6 April 2020 to 6 October 2020 and performing substantially the same role.
|Age at Employment Start Date||Weekly Payment Rate|
There will be eight (8) quarterly JobMaker periods:
|Period||JobMaker Period||Claim Period|
|1||7 Oct 2020 – 6 Jan 2021||1 Feb 2021 – 30 Apr 2021|
|2||7 Jan 2021 – 6 Apr 2021||1 May 2021 – 31 Jul 2021|
|3||7 Apr 2021 – 6 Jul 2021||1 Aug 2021 – 31 Oct 2021|
|4||7 Jul 2021 – 6 Oct 2021||1 Nov 2021 – 31 Jan 2022|
|5||7 Oct 2021 – 6 Jan 2022||1 Feb 2022 – 30 Apr 2022|
|6||7 Jan 2022 – 6 Apr 2022||1 May 2022 – 31 Jul 2022|
|7||7 Apr 2022 – 6 Jul 2022||1 Aug 2022 – 31 Oct 2022|
|8||7 Jul 2022 – 6 Oct 2022||1 Nov 2022 – 31 Jan 2023|
Contact our office for further assistance with the scheme including registration and submission of quarterly reporting.
Visit the ATO site for more information: https://www.ato.gov.au/General/JobMaker-Hiring-Credit/