The JobMaker Hiring Credit scheme has been introduced by the Australian Government. It is an incentive for businesses to hire additional young job seekers aged between 16-35 years.
Eligible employers can take the benefitupto $200 per week for each eligible additional employee aged 16 to 29 years they employ, and upto $100 per week for each eligible additional employee aged 30 to 35 years between 7thOctober 2020 to 6thOctober 2021.
What are the eligibility rules?
For Employees
- The new employee must be aged 16 to 35 years at the start of their employment.
- The new employee must have received the JobSeeker Payment, Youth Allowance or Parenting Payment for at least 28 consecutive days within the 84 days prior to being employed in their new position.
- The new employee must complete an employee notice for theJobMaker Hiring Credit supplied by their employer.
- The new employee must have worked at least 20 paid hours per week on average for the full weeks they were employed during the reporting period.
- The new employee must have not completed a JobMaker employee notice for another employer they are still working for.
- The employee must not be an employee for whom another employer is claiming JobMaker Hiring Credit.
- The employee must not be an employee for whom the employer is receiving another Commonwealth wage subsidy such as an apprenticeship or traineeship wage subsidy.
For Employers
- The employer must have ABN – Australian Business Number.
- The employer must report through Single Touch Payroll (STP).
- The employer must be registered for pay as you go (PAYG) withholding.
- The employer must claim the credit in respect of an eligible employee.
- The employer must have kept adequate records of paid hours worked by the eligible employee.
- The employer must have a minimum of one existing employee.
- Meet the following additional criteria each month before claiming a credit:
- The total employee count must increase after 30thSeptember 2020
- payroll must also increase for the reporting period, as compared to the three months to 30thSeptember 2020
- The employer must Increase both their total employee headcount from 30 September 2020 and increase their payroll for the reporting period (7thOctober 2020 to 6thOctober 2021) compared to the three months to 6thOctober 2020.
Additionally, the employer must not be:
- Subject to the major bank levy
- aState, Commonwealth or Local Government agency or a sovereign entity
- having entered bankruptcy or an entity in liquidation
Under any Commonwealth program receiving a wage subsidy (such as JobKeeper) at the same time claiming a JobMaker credit.
What are the key dates?
- 30thSeptember 2020 –The reference date for comparison of increased employee per headcount and payroll (with comparison to previous three months)
- 7thOctober 2020 –Credit Claims are Valid from this date (employees must commence employment after this date)
- 7th December 2020 –Registrations open for eligible employers via ATO online services
- 6thJanuary 2021 –First reporting period Ends.
- 1st February 2021 –The date from which the 1st credit can be claimed quarterly in arrears from the ATO, for new jobs created between 7 October 2020 and 6 January 2021
- 6th October 2021 –The end of the eligibility period for credit claims (employees must commence before this date)
Can new hiring businesses claim credits?
If a newly established business or has no employees as of 30thSeptember 2020, they can only claim the credit for the second employee and subsequent new eligible young employee.
To know how the claim is made? Call us or enquire us, one of your trusted and experienced Tax Accountants in Melbourne – PND Accountants & Advisors.
Source: https://www.ato.gov.au/General/JobMaker-Hiring-Credit/
