Employers can start claiming JobMaker Hiring Credits
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.
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.
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 has 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.
STP reporting due date
|7 October 2020 – 6 January 2021||27 April 2021||1 February 2021 – 30 April 2021|
|7 January 2021 – 6 April 2021||28 July 2021||1 May 2021 – 31 July 2021|
|7 April 2021 – 6 July 2021||28 October 2021||1 August 2021 – 31 October 2021|
|7 July 2021 – 6 October 2021||28 January 2022||1 November 2021 – 31 January 2022|
|7 October 2021 – 6 January 2022||27 April 2022||1 February 2022 – 30 April 2022|
|7 January 2022 – 6 April 2022||28 July 2022||1 May 2022 – 31 July 2022|
|7 April 2022 – 6 July 2022||28 October 2022||1 August 2022 – 31 October 2022|
|7 July 2022 – 6 October 2022||28 January 2023||1 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 an 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.
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)
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:
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