The 2020-21 Federal Budget announced a new incentive for business owners to employ additional young job seekers called JobMaker Hiring Credit, effective on the 6 October 2020.
The payment rates are:
- $200 a week – for each eligible additional employee aged 16 to 29 years old inclusive.
- $100 a week – for each eligible additional employee aged 30 to 35 years old inclusive.
These payments are made in arrears following each JobMaker period following the table below:
- has registered for the JobMaker Hiring Credit scheme,
- operates a business in Australia
- is a not-for-profit organisation operating in Australia
- is a deductible gift recipient (DGR) endorsed either as a public fund or for a public fund you operated under the Overseas Aid Gift Deductibility Scheme (DGR item 9.1.1) or for developed country relief (DGR item 9.1.2).
- holds an Australian business number (ABN)
- is registered for pay as you go (PAYG) withholding
- has not claimed JobKeeper payments for a fortnight that started during the JobMaker period
- is up to date with income tax and GST returns for the two years up to the end of the JobMaker period for which they are claiming
- satisfies the payroll increase and the headcount increase conditions:
- Includes: full-time, part-time, casual, fixed-terms and non-fixed-term employees
- Excludes: individuals who are not employees such as a contractors or sub-contractors
- satisfies reporting requirements, including up to date Single Touch Payroll (STP) reporting
- does not belong to one of the ineligible employer categories:
- had the Major Bank Levy imposed on the entity, or a member of its consolidated group, for any quarter on or before 30 September 2020
- is an Australian government agency (within the meaning of the Income Tax Assessment Act 1997)
- is a local governing body
- is wholly owned by an Australian government agency or a local governing body
- is a company in liquidation or provisional liquidation
- is an individual who has entered bankruptcy
- is disqualified because the entity terminated the employment or reduced the hours of work of an existing employee or employees for the sole or dominant purpose of receiving or increasing payments under the JobMaker Hiring Credit scheme
- is a sovereign entity. The term 'sovereign entity' includes a body politic of a foreign country or a foreign government agency. Resident subsidiaries of a sovereign entity may be eligible employers if the entity satisfies the other eligibility criteria and is not ineligible due to any other exclusion. This is different to JobKeeper (resident subsidiaries were not eligible employers).
- were between 16 and 29 or 30 and 35 years old at the time you started employment
- received the JobSeeker Payment, Youth Allowance (other than on the basis that the individual was undertaking full-time study or was a new apprentice) or Parenting Payment for at least 28 consecutive days (or two fortnights) within the 84 days (or six fortnights) before commencing employment
Unfortunately if the above is not met, the employee will not be eligible, therefore even if the employer is eligible they will not receive any payments.
If eligible, the employee will need to complete the employee notice form. This does not need to be sent to the ATO, however the employer must keep as evidence for 5 years.
If eligible, registration is done through:
- myGov – ATO Online Services
- Business Portal
- Our tax agent portal on your behalf
When registering you will need to provide current baseline payroll information.
Source: If you would like further in-depth information, dates or examples see:
How can Brentnalls SA help?
If you would like to discuss this further, please contact Brentnalls SA and ask to speak to one of our advisors.
If you would like to print this information please click here for PDF format.
The information provided in this information sheet does not constitute advice. The information is of a general nature only and does not take into account your individual situation. It should not be used, relied upon, or treated as a substitute for specific professional advice. We recommend that you contact Brentnalls SA before making any decision to discuss your particular requirements or circumstances.