JobMaker Hiring Credit scheme: What you need to know

Do you want to grow your small business by hiring young job seekers? The Australian Government’s JobMaker Hiring Credit scheme aims to make this easier by offering wage subsidies for businesses that employ young workers aged 16–35. 

From this month (February 2021), businesses can start claiming JobMaker Hiring Credits for each eligible additional employee they hire between 7 October 2020 and 6 October 2021.

 Want to know more? Read on …

How much is it worth?

Eligible employers can claim up to $200 per week for each additional worker they hire aged 16–29. They can also claim up to $100 per week for each additional worker aged 30–35.

This equates to $10,400 over 12 months (7 October 2020 to 6 October 2021) for each employee aged 16–29, and $5,200 over 12 months for each employee aged 30–35.

 What you need to do

 Firstly, you need to register your business for the JobMaker Hiring Credit scheme. You can register via the Australian Tax Office’s online services, online services for business, business portal or your registered tax or BAS agent.

You must register by the due date of the first JobMaker period you are claiming. The first claim period opened on 1 February 2021 and closes on 30 April 2021. Check other key dates here.

 To complete your registration, you need to provide your:

·         Baseline headcount

·         Baseline payroll amount

·         Contact details

After registering, you must identify, nominate and report each eligible additional employee through your Single Touch Payroll-enabled software. You can then make your JobMaker Hiring Credit scheme claim every three months from 1 February 2021.

 Not sure how to do this? Let Money Intelligence take the hassle out of this for you.

What are the eligibility rules?

Some eligibility rules apply for the employer and employees.

 The employer must:

  • Operate a business in Australia OR be a not-for-profit organisation operating in Australia.

  • Hold an Australian business number (ABN).

  • Be registered for pay as you go (PAYG) withholding.

  • Be up to date with tax lodgement obligations.

  • Satisfy the payroll increase and headcount increase conditions.

  • Report through Single Touch Payroll (STP).

  • Not receive a wage subsidy under another Commonwealth program (such as JobKeeper) at the same time as claiming a JobMaker Hiring Credit.

  • Not belong to one of the ineligible employer categories.

 The employee must:

  • Be aged 16–35 at the start of their employment.

  • Have received a government payment, such as JobSeeker, Youth Allowance or the Parenting Payment, for at least two of the six fortnights prior to being hired.

  • Have worked at least 20 paid hours per week on average for the full weeks they were employed during the reporting period.

  • Complete an employee notice for JobMaker Hiring Credit, supplied by their employer.

  • Have not completed a JobMaker employee notice for another employer they still work for.

When will credits be paid?

JobMaker Hiring Credits will be paid quarterly in arrears, with the first payment period open now (1 February 2021 to 30 April 2021). Generally, you can expect to receive your payment within five days of your claim being processed.

For more information about the JobMaker Hiring Credit scheme, visit the ATO website or contact us at Money Intelligence. We are here to support you!   

 

Susan WahhabJobMaker Hiring Credit, JobMaker Scheme, JobMaker