JobMaker Hiring Credit scheme
The Government have now activated their latest COVID19 stimulus support – the JobMaker scheme. The JobMaker Hiring Credit scheme is an incentive for businesses to employ additional young job seekers aged 16–35 years, by contributing up to $200 per week towards their salary.
Even if your business is not eligible for the JobMaker Hiring Credit scheme, employers may be able to claim other support payments from the Department of Education, Skills and Employment and should review options on their website.
Key points of the JobMaker Hiring Credit scheme:
To be eligible, employers:
- Must have met their Tax and BAS obligations (none overdue).
- Must be registered for PAYG Withholding and be reporting wages through Single Touch Payroll.
- Will only be entitled to claim if they satisfy the headcount increase and payroll increase condition, which will be verified via Single Touch Payroll records.
- Cannot be claiming JobKeeper and the JobMaker Hiring Credit at the same time.
Please note, only employees who satisfy the below are eligible:
- Worked or have been paid for an average of at least 20 hours per week they were employed in the JobMaker period.
- Received the Parenting Payment, Youth Allowance (other than on the basis that the individual was undertaking full-time study or was 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.
- Have not already provided a JobMaker Hiring Credit employee notice to another current employer.
Please note, some employees are not eligible for the JobMaker scheme even though they may satisfy some of the requirements.
Employers that are eligible for JobMaker Hiring Credits will then be:
- Able to register with the ATO from 6 December 2020. See Registering for JobMaker Hiring Credit.
- Complete the JobMaker Employee Notice (employee signs).
- Can claim payments for eligible additional employees for up to 12 months from their employment start date.
- Can claim payments from the ATO in arrears from 1 February 2021. See JobMaker Hiring Credit key dates.
You can estimate the payment you may receive by using the JobMaker Hiring Credit payment estimator.
JobMaker Hiring Credits are considered taxable income of the business (the same as JobKeeper).
The ATO’s JobMaker Hiring Credit guide has step-by-step instructions on how to register. Of course, Holmans are also here to assist.
Employers will need to register before making a claim for JobMaker Hiring Credit payments. You do not need to be registered before you hire eligible employees.
You can register at any time before the end of the claim period.
Register for JobMaker Hiring Credit scheme
To complete your registration for the JobMaker Hiring Credit, employers must provide their:
- baseline headcount
- baseline payroll amount
- contact details.
This information can be provided through either:
- ATO online services
- the Business Portal
- your registered tax or BAS agent.