JobMaker Hiring Credit – The Next Round of Government Stimulus – Are you Eligible?
If you have or will employ anyone between 7 October 2020 and 6 January 2021 please read the below important information and if relevant contact us immediately.
Payments are to support employers who employ additional employees
Must apply/register prior to 6th January to be eligible for first quarter (7/10/2020 – 06/01/2021)
Payments are either $200/week or $100/week depending on the age of the eligible employees
New employees must be aged 16 to 35 years old
New employees must have received 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
Payments will run for 12 months but will be paid quarterly. The criteria must be met for each quarter being claimed and is based on payroll information submitted through single touch payroll
To be eligible for the first quarter the number of employees you had on 6 January 2021 must be higher than the number of your employees at 30 September 2020.
To be eligible for the first quarter your payroll expenses for the period 7/10/20 to 06/01/2021 must be higher than your baseline payroll expenses. Your baseline payroll expenses are payroll expenses incurred 3 months prior (but including) 6/10/2020 – 92 day period.
If you don’t meet the criteria in the first quarter, you can still meet the criteria in future quarters. You must however register prior to the last date of the relevant quarter.
If you think the above key facts apply to your business, read on for the full details and contact us immediately to organise your registration. The Tax Office only released the details of the program just before 5:00pm on 9/12/2020. Bloom Accounting Services will be closed from 4:00pm 18th December and will re-open on 4th January 2021. Time is of the essence if we are to meet the 6/01/2021 registration deadline for the first period
What is the Jobmaker Hiring Credit?
It is an incentive for employers to hire additional young jobseekers.
It will be administered by the Tax Office
A jobmaker Hiring Credit can be obtained for each new job created over the 12 months from 7 October 2020. During this time the employer must hire an eligible employee.
The maximum claim period is 12 months
Employers must register with the Tax Office and make claims quarterly. Claims will commence in February 2021. The first quarter registration is due on 6th January 2021.
Bloom Accounting Services will be closed from 4:00pm 18th December and will re-open on 4th January 2021. If you need assistance registering for the first quarter with the Tax Office, you need to contact us immediately.
To Be eligible you must:
a) Check you are an eligible employer
b) Employ eligible additional employees
c) Register for the JobMaker Hiring Credit before your first claim
d) Satisfy the headcount increase condition
e) Satisfy the payroll increase condition
A. Eligible employers must:
Not be claiming JobKeeper for the same period you are claiming JobMaker
Hold an ABN
Be up-to-date with tax lodgment obligations (BAS & Tax Returns)
Be registered for PAYG Withholding
Be reporting through Single Touch payroll
Not be in liquidation or entered bankruptcy
Not have terminated the employment or reduced the hours of work of existing employees for the sole or dominant purpose of receiving or increasing payments under the JobMaker Hiring Credit Scheme.
B. Eligible Employees:
are an employee of the entity during the JobMaker period
started employment on or after 7 October 2020 and before 7 October 2021
worked or have been paid for an average of at least 20 hours per week they were employed in the JobMaker period
have given a JobMaker Hiring Credit employee notice to the employer
have not already provided a JobMaker Hiring Credit employee notice to another current employer
received the Parenting Payment, Youth Allowance (other than on the basis that the individual was undertaking full-time study or was a new apprentice) or JobSeeker Payment for at least 28 consecutive days (or 2 fortnights) in the 84 days (or 6 fortnights) prior to starting employment.
sole traders (as they cannot employ themselves)
partners of a partnership
trustees and beneficiaries of trusts (that are not widely held unit trusts)
directors or shareholders of companies (that are not widely held).
includes the sole trader’s/directors/shareholders/Trustees/beneficiary’s spouse
relative of sole trader/director/shareholder/trustee/beneficiary or a relative of their spouse, including:
a parent, grandparent, brother, sister, uncle, aunt, nephew, niece, lineal descendent or adopted child, or
the spouse of such a parent, grandparent, brother, sister, uncle, aunt, nephew, niece, lineal descendent or adopted child.
C. Register for JobMaker Hiring Credit
Registration opened on 6 December and must be completed prior to 6 January for the first quarter
Registration can be completed with the Tax Office through ATO online Services, the business portal or Bloom Accounting Services.
The following information must be included on the registration form:
Baseline payroll amount
D. Satisfying the Headcount increase Condition
The number of employees employed by you at the end of each JobMaker period must be higher than the number of employees in your baseline headcount. The difference is your headcount increase. The first quarter runs from 7 October 2020 to 6 January 2021. The headcount test date is therefore 6 January. The number of employees you had on 6 January must be higher than your baseline headcount.
The baseline headcount is your headcount on 30 September 2020 and includes full-time, part-time, casual, fixed-term and non-fixed term employees but excludes contractors or sub-contractors.
E. Satisfy the payroll increase condition
Your payroll expenses must have increased in the JobMaker period when compared to the baseline period. If your payroll has not increased, you will not be eligible.
Your baseline payroll is calculated by counting all the payroll expenses in the three months up to and including 6 October 2020 (92 day period). It doesn’t matter if you were not in business for the full 3 months prior to 6 October 2020, your baseline payroll will just be lower.
JobMaker is also capped to the increase in your payroll if it is less than the JobMaker payment rates.
JobMaker Hiring Credit amounts you will receive
Providing you pass all the eligibility criteria you may claim:
Age of employee*
16 to 29 years inclusive
30 to 35 years inclusive
*Age of employee is based on the date they commenced employment with the employer
Jo is a director of Jo’s Flowers. Jo had 3 part-time employees on 30 September 2020. During the Christmas busy period Jo employed an additional casual employee (aged 20 years) for more than 20 hours per week on 14/12/20. All original staff members maintained their same hours. The additional casual employee was still employed on 6 January 2021. All other eligibility requirements were passed. Jo would receive approximately $685 in JobMaker for the first quarter (only eligible for 24 days) and if the casual employee remained employed for the whole of the next jobmaker period, Jo would be eligible for $2,571 (eligibility for whole 90 days).