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Employers can start claiming JobMaker Hiring Credits

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Published by:
Peter Hetherington
Published on:
January 25, 2021
Modoras Accounting (QLD) Pty Ltd ABN 81 601 145 215
JobMaker Hiring Credits

JobMaker Scheme

Many employers registered for the federal government’s JobMaker Hiring Credit scheme can start claiming their credits this month.

These are the employers who signed up during the first round of registrations, between 7 October 2020 and 6 January 2021.

They can lodge their claims with the Australian Taxation Office (ATO) from February 1 onwards (JobMaker is paid in arrears).

The government announced the JobMaker scheme on 6 October 2020, as part of the 2020–21 budget.

It gives employers an incentive to hire more people (not simply to replace someone who has left).

Under the scheme, eligible employers may receive payments of:

  • $200 per week for new employees aged 16 to 29
  • $100 per week for new employees aged 30 to 35.

Eligibility criteria

The scheme applies to established and new businesses, even ones that start operations while the scheme is underway.

To be eligible for JobMaker, employers must, among other things:

  • be up to date with lodging their income tax and GST returns for the two years up to the end of the JobMaker period for which they are claiming
  • increase their headcount and payroll for the period have not claimed JobKeeper payments for a fortnight that started during the JobMaker period.

And employees must, among other things:

  • have started working for the relevant employer between 7 October 2020 and 6 October 2021
  • be at least 16 years of age but not older than 36 at the start of their employment
  • have received Jobseeker Payment, Youth Allowance (except full-time students and apprentices) or Parenting Payment for at least 28 consecutive days in the 84 days before they were employed.

See all the ATO’s eligibility criteria for employers and employees.

Important Dates

The scheme is divided into eight  ‘JobMaker periods’, each of which has a Single Touch Payroll (STP) reporting deadline and claim period.

The scheme will run for 12 months, until 6 October 2021.

Below are the key JobMaker dates that need to be adhered to. The ATO have advised they will not be as lenient if the deadline date has been missed, unlike JobKeeper. The STP reporting deadline is the due date for all employee information to be reported to the ATO which must be done a minimum of 3 days prior to the Claim Period. The Claim Period is the date range you have to lodge the claim from the ATO.

Period

JobMaker period

STP reporting due date

Claim period

1

7 October 2020 – 6 January 202127 April 20211 February 2021 – 30 April 2021

2

7 January 2021 – 6 April 202128 July 20211 May 2021 – 31 July 2021

3

7 April 2021 – 6 July 202128 October 20211 August 2021 – 31 October 2021

4

7 July 2021 – 6 October 202128 January 20221 November 2021 – 31 January 2022

5

7 October 2021 – 6 January 202227 April 20221 February 2022 – 30 April 2022

6

7 January 2022 – 6 April 202228 July 20221 May 2022 – 31 July 2022

7

7 April 2022 – 6 July 202228 October 20221 August 2022 – 31 October 2022

8

7 July 2022 – 6 October 202228 January 20231 November 2022 – 31 January 2023

Eligible Employer Conditions

From the time the entity enrols with the ATO onwards, it must carry on a business, have and ABN and be registered for PAYG Withholding;

At the time of submitting the JobMaker claim, all outstanding Tax and GST returns that were to be lodged in the 2 year period to the end of the relevant JobMaker period, must have been lodged but they are not required to have been paid;

The entity must have at least one eligible additional employee for the period (that is they could not have simply replaced an employee who has left);

The entity must have a headcount increase for the period (eg.. 1 employee to 2 employees);

The entity must have a payroll increase for the period (They can not simply lower the hours of other staff to provide the capacity to hire new staff resulting in a similar gross payroll);

Have met all ATO STP reporting requirements by the STP Reporting Due Date;

The employer must not be entitled to a JobKeeper payment for a fortnight that begins in that JobMaker period;

The entity must have notified the Commissioner that it elects to participate in the JobMaker scheme;

The entity needs to submit a claim to the ATO in relation to the JobMaker period; and

The entity needs to keep adequate records (e.g., of the paid hours worked by the employee they are claiming the credit).

Eligible Employee Conditions

The employee must have been employed by the entity for at least part of the relevant JobMakerperiod;

The individual must have commenced employment with the entity between 7 October 2020 and 6 October 2021 (inclusive – if hired on 7 October 2021 they would not be eligible);

The individual must have been at least 16 years old but less than 36 years of age at the time their employment commenced (whether they have a birthday during the period of the scheme does not impact the claim or the entitlement);

They must have received JobSeeker Payment, Youth Allowance (except on the basis they were undertaking full-time study or was a new apprentice) or  Parenting Payment for at least 28 consecutive days in the 84 days before the employment commenced;

They must have worked or been paid for an average of at least 20 hours per week for the time they were employed by the entity in the JobMaker period. If the employee worked less than 20 hours, the employer cannot claim JobMaker for them during that period; and

The employee must have given a notice to the employer specifying certain information.

Excluded Employees

No related party is eligible (eg. Spouse or child, Director of a company, trustee or beneficiary of a trust);

Anyone engaged other than as an employee at any time in the 6 months before 6 October 2020 (You are not able to change someone from Subcontractor to employee);

An employee is not eligible if they commenced employment 12 months or more before the first day of the JobMaker period. This is the case even if the employer has claimed JobMaker credits for less than 12 months for that employee (e.g., they might have been receiving JobKeeper payments which prevented access to JobMaker initially)

JobMaker Hring Credits Essentials

Employees are required to provide their employers with notice forms regarding all required information to be reported to the ATO. To assist the ATO have prepared pro-forma notice forms that can be accessed at the link below:

https://www.ato.gov.au/printfriendly.aspx?url=/General/JobMaker-HiringCredit/#JobMakeremployeenotices

IMPORTANT INFORMATION: This blog has been prepared by Modoras Accounting (QLD) Pty. Ltd. ABN 81 601 145 215. The information and opinions contained in this blog is general information only and is not intended to represent specific personal advice (Accounting, taxation, financial, insurance or credit). No individuals’ personal circumstances have been taken into consideration for the preparation of this material. The information and opinions herein do not constitute any recommendation to purchase, sell or hold any particular financial product. Modoras Accounting (QLD) Pty. Ltd. recommends that no financial product or financial service be acquired or disposed of or financial strategy adopted without you first obtaining professional personal financial advice suitable and appropriate to your own personal needs, objectives, goals and circumstances. Information, forecasts and opinions contained in this blog can change without notice. Modoras Accounting (QLD) Pty. Ltd. does not guarantee the accuracy of the information at any particular time. Although care has been exercised in compiling the information contained within, Modoras Accounting (QLD) Pty. Ltd. does not warrant that the articles within are free from errors, inaccuracies or omissions. To the extent permissible by law, neither Modoras Accounting (QLD) Pty. Ltd. nor its employees, representatives or agents (including associated and affiliated companies) accept liability for loss or damages incurred as a result of a person acting in reliance of this publication. Liability limited by a scheme approved under Professional Standards Legislation.

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