The JobMaker Hiring Credit scheme is now open!

The JobMaker Hiring Credit scheme is officially open, with businesses now able to apply for the scheme as it enters its first quarterly claim period.

The first claim period for JobMaker opened on 1 February 2021 and closes on 30 April 2021. The scheme is open until 6 October 2022.

The JobMaker scheme is a payment-based program to incentivise employers to increase their staff headcount and hire new workers. It is aimed to boost the employment prospects for 16-35 year olds who were particularly impacted by restrictions imposed due to COVID-19.

For each JobMaker period, businesses must show an increase in their employee headcount and in the employee payroll, with the amount received based on the number of eligible employees they have hired.

What you need to know

Payment rates

There are two payment rate depending on the age of the new employee:

• $200 per week or up to $10,400 over a year for ages 16 to 20
• $100 per week or up to $5,200 over a year for ages 30 to 35.

Eligibility

To be eligible, a ‘new’ employee must:

• be aged between 16 to 35 years old
• have worked at least 20 hours paid per week on average during the reporting period
• have received the JobSeeker Payment, Youth Allowance or Parenting Payment for at least 28 consecutive days within the three months prior to being employed in their new position
• have not completed a JobMaker employee notice for another employer they are still working for.

Employers are required to:

• register through the ATO business portal, ATO online services or through their registered tax agent
• provide a notice for JobMaker Hiring Credit to the employee
• nominate eligible new employees through their single touch payroll software which will show an increase in the business headcount of employees an increase in payroll prior to the JobMaker scheme.

The employer must:

• have an Australian Business Number (ABN)
• be registered for pay as you go (PAYG) withholding
• report through Single Touch Payroll
• be up to date with their tax lodgement obligations.

JobMaker cannot be claimed for:

• sole traders
• partners of partnerships
• trustees and beneficiaries of trusts that are closely held
• directors and shareholder of companies that are closely held.

Other information:

• the first claim period for the JobMaker Hiring Credit opened on 1 February 2021 and closes on 30 April 2021. The claim can then be made by the employer every three months from 1 February 2021.
• the JobMaker Hiring Credit is paid every three months in arrears to employers
• the employer’s additional criteria (the employee headcount and the payroll) must remain higher than they were as at 30 September 2020 for them to remain eligible for the credit each month.

Key dates

• 30 September 2020 – the reference date for comparison of increased employee headcount and payroll (as compared to the previous three months)
• 7 October 2020 – the date from which credit claims are valid (employees must commence employment after this date)
• 7 December 2020 – registrations open for eligible employers via ATO online services
• 6 January 2021 – end of the first reporting period
• 1 February 2021 – the date from which the first credit can be claimed quarterly in arrears from the ATO, for new jobs created between 7 October 2020 and 6 January 2021
• 6 October 2021 – the end of the eligibility period for credit claims (employees must commence before this date).

Click here for full eligibility criteria and further information.

If you would like assistance applying for the JobMaker scheme or have any questions, please contact us.

AFS & Associates Chartered Accountants
T: 03 5443 0344  •  E: afs@afsbendigo.com.au  •  61 Bull St, Bendigo VIC 3550