JobMaker 2020-21 | Does your business qualify?
On 6 October 2020 as part of the 2020–21 Federal Budget, the Morrison Government announced a new incentive for businesses to employ additional young job seekers called the JobMaker Hiring Credit. The JobMaker Hiring Credit will be administered by the ATO.
Eligible employers will have access to a JobMaker Hiring Credit for each new job they create over the 12 months from 7 October 2020, for which they hire an eligible employee, for a maximum claim period of 12 months from their employment start date. You may be able to claim payments relating to employees hired up until 6 October 2021. Employees hired on or after 7 October 2021 are not eligible employees.
Employers will register and make claims quarterly, with claims commencing in February 2021.
The JobMaker Hiring Credit will be:
- $200 per week for each eligible employee aged 16 to 29, or
- $100 per week for each eligible employee aged 30 to 35.
An employer cannot claim JobKeeper and JobMaker Hiring Credit at the same time.
Eligible employees must have worked an average of at least 20 hours per week over the quarter for the employer to qualify for the payment. Employees that start and/or stop employment during a quarter must meet a similar test based on the length of time in employment.
For the employer to be eligible, new employees must:
- be aged 16 to 35 years, and
- be in receipt of income support payments (such as JobSeeker Payment, Youth Allowance (Other), or Parenting Payment) for at least one of the three months before they were hired.
Further eligibility conditions will apply to employers based on the employer’s headcount and payroll on 30 September 2020. These conditions ensure that employers claim credits for additional jobs created rather than for replacing existing employees.
This measure is subject to the passage of legislation.
Register for JobMaker Hiring Credit
Eligible employers can register for the JobMaker Hiring Credit scheme from 6 December 2020. Once registered, eligible employers can claim the JobMaker Hiring Credit payment for each JobMaker period. You can make a claim for the first JobMaker period from 1 February 2021. Payments are made in arrears.
To complete their registration for the JobMaker Hiring Credit, employers must provide their:
- baseline headcount, and
- baseline payroll amount, and
- contact details.
This information can be provided through either:
- ATO online services, or
- the Business Portal, or
- your registered tax or BAS agent.
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, or
- are an individual who has entered bankruptcy.
Key dates | ATO
7 October 2020 – scheme starts
6 December 2020 – registrations open. You can register from 6 December 2020. You only need to register once, and you must register before you claim.
1 February 2021 – first claim period opens. You can claim JobMaker Hiring Credit payments from 1 February 2021 as long as you have registered and met the other eligibility requirements (including reporting through Single Touch Payroll).
30 April 2021 – first claim period closes. You can only claim JobMaker Hiring Credit for the first JobMaker period until the end of 30 April 2021. You must claim by the end of the claim period to receive JobMaker Hiring Credit for that period.
6 October 2022 – scheme ends
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