JobMaker Scheme Explained

Oh what a crazy year it has been. We have all had to battle through the Covid crisis with our businesses, while also having to deal with Job Keeper and Job Seeker.

Enter JobMaker

The next instalment from the Australian Government is a new scheme that is designed to encourage employment in people aged 16 to 35.

To be eligible the person being employed must have also been on government support.

The employer is paid $100 or $200 per week dependent on age. The scheme is designed to promote employment in out of work young people in Australia by giving employers an incentive of free money.

Payment Rates

Through the JobMaker Hiring Credit scheme, eligible employers may receive payments of up to:

  • $200 a week – for each eligible additional employee aged 16 to 29 years old inclusive. (Up to $10,400 in a year)
  • $100 a week – for each eligible additional employee aged 30 to 35 years old inclusive. (Up to $5,200 in a year)

Payment will be made in arrears following each JobMaker period, and also can be claimed in arrears for those that were hired and eligible from October 2020.

Employee Eligibility

  • are an employee of the entity during the JobMaker period
  • are aged 16–35 years old when they started employment
  • 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 completed a JobMaker Hiring Credit employee notice for the employer
  • have not already provided a JobMaker Hiring Credit employee notice to another current employer
  • received one of these payments for at least 28 consecutive days (or 2 fortnights) in the 84 days (or 6 fortnights) prior to starting employment
    • JobSeeker Payment
    • Parenting Payment
    • Youth Allowance (except if they were receiving the allowance because they were undertaking full-time study or are a new apprentice).

Employer Eligibility

Who can register?

Employers may be eligible for JobMaker Hiring Credit payments if all of the following apply.

The employer:

  • has registered for the JobMaker Hiring Credit scheme
  • either  
    • 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
  • satisfies reporting requirements, including up to date Single Touch Payroll (STP)
  • does not belong to one of the ineligible employer categories.

Who cannot register?

You cannot register if any of the following apply.

You:

  • do not have an active Australian business number (ABN)
  • had the Major Bank Levy imposed on you or a member of your consolidated group for any quarter on or before 30 September 2020
  • are an Australian government agency (within the meaning of the Income Tax Assessment Act 1997)
  • are a local governing body
  • are wholly owned by an Australian government agency or a local governing body
  • are a sovereign entity
  • are a company in liquidation or provisional liquidation
  • are an individual who has entered bankruptcy.

JobMaker claim periods

PeriodJobMaker periodSTP reporting due dateClaim period
17 October 2020 – 6 January 202127 April 20211 February 2021 – 30 April 2021
27 January 2021 – 6 April 202128 July 20211 May 2021 – 31 July 2021
37 April 2021 – 6 July 202128 October 20211 August 2021 – 31 October 2021
47 July 2021 – 6 October 202128 January 20221 November 2021 – 31 January 2022
57 October 2021 – 6 January 202227 April 20221 February 2022 – 30 April 2022
67 January 2022 – 6 April 202228 July 20221 May 2022 – 31 July 2022
77 April 2022 – 6 July 202228 October 20221 August 2022 – 31 October 2022
87 July 2022 – 6 October 202228 January 20231 November 2022 – 31 January 2023

The Process

1 – Firstly your eligibility needs to be determined.

You can see more about eligibility here

2 – Register for the JobMaker Hiring Credit Scheme.

To register on your behalf, your tax or BAS agent will need:
■ Contact details (if they do not already have them)
■ Baseline headcount – total employees on 30 September 2020
■ Baseline payroll amount – for the 3-month period up to and including 6 October 2020.

All businesses need to provide:
■ Documents and information that confirm:
– you are operating a business in Australia, or are a
• not-for-profit organisation operating in Australia
• 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).
■ Payroll information:
– payroll expenses incurred during the relevant JobMaker period (to calculate your payroll increase at end of the JobMaker period)
– the number of employees employed on the last day of the JobMaker period (to calculate your headcount increase at end of each JobMaker
period).
■ Eligible additional employees not already reported through Single Touch Payroll
– full name
– Tax file number (TFN)
– date of birth
– start date (if during the relevant JobMaker period)
– cessation date (if during the relevant JobMaker
period).
■ Records of hours worked by eligible employees such as payslips, payroll data, rosters, employment contracts, timesheets, business diaries, appointments books or logbooks.
■ Other information – any other information required for your tax and GST lodgement obligations.

3 – Submit employee notices

An employee notice includes information about both employer and employee to help the ATO determine eligibility. More information on employee notices here

4 – Claim for each period

To make a claim:

  • complete a claim form on ATO online services or the Business Portal or your registered tax or BAS agent can do it for you
  • provide information about your headcount, payroll and employees, including    
    • your baseline payroll amount – if the number of days in the JobMaker period is different to the number of days in the baseline payroll you provided at registration
    • your total payroll amount for the JobMaker period
    • your headcount at the end of the JobMaker period
    • confirming your eligible employees
    • declaring the information is true and correct.

Our Recommendation

JobMaker is designed to enhance employment opportunities and this is a great time for businesses to employ someone with the incentives being available. If you would like to claim for JobMaker then contact us so we can discuss your eligibility and the process

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