What is it?
The federal government announced a new JobMaker program in the 2020 budget. Eligible businesses are able to claim hiring credits this quarter. You do not need to satisfy a fall in turnover test. Unlike JobKeeper, the funds do not need to be passed on to the employee, but rather the money is intended to assist with the costs of hiring new young jobseekers. Eligible employers can apply for JobMaker hiring credits for each newly hired eligible employee aged between 16 and 35 years during the defined period. Payments are made in arrears every three months, with the first claim period from February 1, 2021 – April 30, 2021. The policy lasts for one year and is open from October 7, 2020 and finishes on October 6, 2021. (There are strict eligibility criteria for both employers and employees on the program.)
How much can I claim?
Eligible employers may receive payments of up to $200 per week for each eligible additional employee aged 16–29 years old, and $100 per week for each eligible additional employee aged 30–35 years old.
What are the eligibility criteria?
In summary, an employer may qualify for the program if they:
- operate a business or Not for Profit in Australia
- have an Australian Business Number (ABN)
- are registered for pay as you go (PAYG) withholding tax
- report through Single Touch Payroll (STP)
- are up-to-date with income tax and GST lodgement obligations for the last 2 years
How do I apply?
There are a number of steps in order to become a participant in the JobMaker program:
- Eligible businesses must first register for the credits via the ATO’s online services or Business Portal, or via their registered tax or BAS agent.
- Businesses can then make a claim by nominating eligible employees by having employees complete a JobMaker employee notice, running payroll events through their Single Touch Payroll-enabled software, and supplying information about the business’ headcount and payroll for the JobMaker period.
- The ATO will then calculate the claim amount for the business, based on the information provided and the credits are paid quarterly in arrears.
- Employees must complete a minimum of 20 hours of work per week during the JobMaker period to be eligible for the payments.
- Payments can be claimed for up to 12 months for each additional employee hired during the JobMaker eligibility period, with the program to end on October 6, 2022.
- Businesses can register at any time until the program ends, but must do so before the end of the claim period for the first JobMaker period they wish to claim for.
What are the key dates for reporting and claims?
You can register anytime from 6 December 2020 going forward and you only need to register once — but you must do so before you submit a claim.
You must claim by the end of the defined claim period to be eligible for credits in that period. In addition, you must meet all STP reporting obligations by the reporting due date.
See chart below.
| Dates for JobMaker periods, STP reporting and claim periods | |||
| Period | JobMaker period | STP reporting due date | Claim period |
| 1 | 7 October 2020 – 6 January 2021 | 27 April 2021 | 1 February 2021 – 30 April 2021 |
| 2 | 7 January 2021 – 6 April 2021 | 28 July 2021 | 1 May 2021 – 31 July 2021 |
| 3 | 7 April 2021 – 6 July 2021 | 28 October 2021 | 1 August 2021 – 31 October 2021 |
| 4 | 7 July 2021 – 6 October 2021 | 28 January 2022 | 1 November 2021 – 31 January 2022 |
| 5 | 7 October 2021 – 6 January 2022 | 27 April 2022 | 1 February 2022 – 30 April 2022 |
| 6 | 7 January 2022 – 6 April 2022 | 28 July 2022 | 1 May 2022 – 31 July 2022 |
| 7 | 7 April 2022 – 6 July 2022 | 28 October 2022 | 1 August 2022 – 31 October 2022 |
| 8 | 7 July 2022 – 6 October 2022 | 28 January 2023 | 1 November 2022 – 31 January 2023 |
Source: JobMaker Hiring Credit key dates | Australian Taxation Office (ato.gov.au)
For more information on JobMaker:
Full details for employers (including a fact sheet) is available from the ATO website at JobMaker Hiring Credit eligibility | Australian Taxation Office (ato.gov.au). Your adviser at dmca advisory is able to apply on your behalf and can answer any questions – just give us a call.