The JobMaker program is to encourage businesses to hire younger Australians and will receive payments for new positions created. The ATO has recently commenced the registration process ahead of the first claim period commencing from February 2021.

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Eligible businesses can access the payment for up to 12 months for each eligible additional employee hired from 7 October 2020.

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Summary of the program as follows,

 

1. The government will contribute the following amounts for up to 12 months,

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• $A200 per week for new eligible employees aged 16-29 

• $A100 per week for new eligible employees aged 30-35

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2. Eligible for employers

 

• that have an aggregated turnover of less than $5 billion

• holding an Australian Business Number (ABN)

• being registered for pay as you go (PAYG) withholding

• reporting through Single Touch Payroll

• being up to date with income tax and GST lodgment obligations

• that has an increase in the total employee headcount from the reference date of 30 September

• NOT claiming “JobKeeper” and “JobMaker” credits at the same time

• not falling into any of the exclusion categories

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3. Conditions to make a claim

 

• for each JobMaker period employers must prove that they have created a new employment positions by the increase in their employee headcount and in the payroll amount

• the total employee headcount must increase by a minimum of one additional employee from the date of 30 September 2020.

• the payroll for the reporting period must increase compared to the three months to 6 October 2020.

• the headcount includes both employees for which the business can claim JobMaker hiring credits as well as all other employees

• in the first year of the scheme (October 2020 to October 2021), the baseline headcount is on the headcount on 30 September 2020. If a business did not have any employees on that date, then their headcount is zero

• in the second year of the scheme (October 2021 to October 2022), the adjusted baseline headcount is automatically calculate by the ATO 

• the total headcount for each JobMaker period will be the number of employees employed by the business on the last day of each JobMaker period (“headcount test date”)

• the total headcount only includes employees that were employed on the test date, meaning employees who worked for the business during the JobMaker period, but stopped before the end of the period, cannot be included in the headcount.

• substituting eligible employees for those who are not eligible will not increase your headcount, and could potentially attract the ATO’s attention

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4. Eligible for employees,

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• who worked an average of at least 20 hours per week over the quarter for the employer

• who must have been in receipt of income support payments (such as the Jobseeker payment, Youth Allowance or Parenting Payment) for at least one of the three months before they were hired

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5. To make a claim

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• registration open now through the Business Portal or a registered tax agent 

• employers able to claim the credits from the ATO commencing February 2021 

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6. Points to note,

 

• ONLY applicable to employers that have created new jobs instead of simply replacing existing employees

• ONLY eligible to employees who have received government support and therefore, should not apply to temporary residents

• NOT applicable when employer is receiving JobKeeper support

• ONLY one employer can claim for the individual at a single time (even if the individual works for two employers at once)

 

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Please refer to the ATO for more information.

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https://www.ato.gov.au/General/JobMaker-Hiring-Credit/

 

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Disclaimer: 

Information based on facts we have summarised to the above updated date. We have not considered your personal circumstances and should you wish to consider it, please seek professional advice.