5th February 2021
What is JobMaker?
JobMaker is a credit available to eligible businesses that create new jobs (not if you are merely replacing someone who left) for young people who were previously on certain government benefits. The hiring credit is available for jobs created from 7 October 2020 until 6 October 2021 and provides:
- $200 per week for new employees between 16 to 29 years of age; and
- $100 per week for new employees between 30 to 35 years of age.
Is your business eligible?
In order for your business to be eligible you must satisfy all of the following criteria:
- have registered for the JobMaker Hiring Credit scheme
- either
- operates a business in Australia
- is a not-for-profit organisation operating in Australia
- holds an Australian Business Number (ABN)
- is registered for pay as you go (PAYG) withholding
- is not currently receiving JobKeeper payments
- is up to date with all tax returns and BASes
- will increase their payroll headcount with this employee
- reports payroll through Single Touch Payroll (STP) reporting (Xero satisfies this)
- does not belong to one of the ineligible employer categories (see here).
Is your employee eligible?
Employees are eligible if they are all of the following:
- an employee of the entity during the JobMaker period
- aged 16–35 years old when they started employment
- started employment on or after 7 October 2020 and before 7 October 2021
- worked or have been paid for an average of at least 20 hours per week for the time they were employed in the JobMaker period
- have completed a JobMaker Hiring Credit employee notice for the employer
- have not already provided a JobMaker Hiring Credit employee notice to another current employer
- received one of these payments for at least 28 consecutive days (or 2 fortnights) in the 84 days (or 6 fortnights) prior to starting employment
- JobSeeker Payment
- Parenting Payment
- Youth Allowance (except if they were receiving the allowance because they were undertaking full-time study or are a new apprentice).
JobMaker cannot be claimed for:
- Sole traders (as they cannot employ themselves);
- Partners of a partnership;
- Trustees and beneficiaries of trusts; or
- Directors or shareholders of companies
- Relatives of the business owner
- Contractors, subcontractors or labour hire employees
How to Register for JobMaker
To register for the first JobMaker period (7 October 2020 to 6 January 2021), the claim period ends on 30 April 2021, which means that if your business wants to claim JobMaker for this period it needs to register with the ATO by 30 April 2021.
Your business only needs to register once for JobMaker. This can be done through MyGov, MyGovID or we can register on your behalf via the ATO tax agent portal.
When you register, your business will need to provide:
- Headcount as at 30 September 2020 (each employee is counted as one regardless of whether they are full time, part time or casual. Contractors are not counted).
- Payroll for the 3 months up to and including 6 October 2020; and
- Contact details.
Each of your eligible employees must give you written notice in the approved form (the JobMaker employee notification found here) confirming that:
- The age condition was met;
- They met the social security payments condition; and
- They have not provided a notice to another entity of which they are currently an employee, unless that notice has ceased to have effect. A notice ceases to have effect as soon as the relevant employment arrangement ceases.
For more details on the JobMaker Hiring Credit, please see here.
Should you have any questions, please don’t hesitate to contact us
