JobMaker Hiring Credit: all you need to know

One of the big announcements in the Federal Budget 2020-21 is the JobMaker Hiring Credit, a program to encourage businesses to continue to employ staff.

JobMaker, JobSeeker, JobKeeper what is the difference?

We’re not surprised if your confused about all these measures and what they mean for your business.

JobSeeker is the new name for the dole and other payments, administed by Centrelink. JobKeeper is a wage subsidy scheme given to employers, administed by the ATO.

Now the government has announced JobMaker, an incentive to employers to hire new staff between 16-35 years of age for the next 12 months that is administered by the ATO and claimed by employers quarterly (in arrears).

New jobs created from 7 October 2020 until 6 October 2021 will attract the jobmaker hiring credit for up to 12 months from the date the new position is created.

How much can my business get for the JobMaker Hiring Credit?

$200/wk for each additional eligible employee that is between 16-29 years old
$100/wk for each additional eligible employee that is between 30-35 years old

How & when is the JobMaker Hiring Credit paid?

THe JobMaker Hiring Credit is claimed quarterly in arrears, paid to the employer by the ATO. Employers can claim the first payment when claims open on 1 February 2021 (for new jobs created between 7 October 2020 and 6 January 2021).

Which staff can I receive JobMaker Hiring Credits for?

The JobMaker Hiring Credit only applies to new positions created from 7 October 2020 where it increases your overall headcount. Eligible staff must work at least 20hrs/week (can be permanent, casual or fixed term) and must have received the JobSeeker Payment, Youth Allowance (Other), or Parenting Payment for at least one month within the past three months before they were hired.

Can I still get it if my business currently receives the JobKeeper?

No, you cannot receive the JobKeeper Payment and the JobMaker Hiring Credit at the same time. An employer receiving the JobKeeper Payment can be eligible for the JobMaker Hiring Credit once they have exited the JobKeeper Payment and are no longer receiving the JobKeeper Payment for any employees or business participants.

What do I apply for the JobMaker Hiring Credit?

Your Upturn Tax Advisor will be able to register your business and eligible employees for the JobMaker Hiring Credits via the ATO online services from 7 December 2020. However, before this happens its important to ensure that you have all the required registrations in place at the time you employ the person therefore please contact us prior to taking advantage of this incentive.

What else do i need to know?

- Must be up to date with all tax lodgements at the time of application
- Must keep adequate records of paid hours worked
- Must increase headcount (cant replace existing staff)
- Must have an ABN, registered for PAYG withholding, must report via STP
- Cannot be in receipt of any other Government support for the employee