COVID-19 measures - JobMaker hiring credit The JobMaker Hiring Credit scheme (“JobMaker”) is a new government incentive in response to the COVID-19 economic crisis. Eligible employers can access JobMaker for each eligible additional employee aged 16 to 35 they hire between 7 October 2020 and 6 October 2021. The program will last for 2 years until 6 October 2022. Are you eligible?
To be eligible for JobMaker, you must:
operate a business in Australia (not-for-profit organisations operating in Australia and certain deductible gift recipients (DGRs) are also eligible);
hold an active ABN;
be registered for PAYG withholding;
satisfy the payroll increase and the headcount increase conditions – see below;
not have claimed JobKeeper payments for a fortnight that started during the JobMaker period (see the table below for the JobMaker periods);
be up to date with income tax and GST returns for the 2 years up to the end of the JobMaker period for which you are claiming (this requirement is adjusted for new businesses);
be registered with the ATO for the scheme – see below; and
satisfy reporting requirements, including up to date Single Touch Payroll (STP) reporting (see the table below).
Certain categories of employer are not eligible, for example, companies in liquidation or provisional liquidation, individuals who have entered bankruptcy, major banks and Australian government agencies. Payroll and headcount conditions You must employ one or more eligible additional employees, resulting in a genuine increase in both:
your total employee headcount from 30 September 2020 (a different reference point applies for the last 4 JobMaker periods); and
your payroll for the JobMaker period, compared to the 3 months up to 6 October 2020.
An individual is an “eligible additional employee” if they:
were employed by you at any time during the JobMaker period;
commenced employment between 7 October 2020 and 6 October 2021;
were aged between 16 and 35 years at the time they commenced employment;
worked or were paid for an average of 20 hours a week for each whole week they were employed by you during the JobMaker period; and
received certain income support payments, e.g. JobSeeker or Parenting Payment, for at least 28 consecutive days (or 2 fortnights) within the 84 days (or 6 fortnights) before being hired.
The employee must also provide you with a notice containing relevant information.
Certain individuals cannot qualify as an eligible additional employee, including:
relatives;
partners if your business is operated through a partnership;
directors and shareholders if your business is operated through a company; and
anyone who, at any time between 6 April 2020 and 6 October 2020, you engaged as a contractor or a subcontractor and who performed substantially similar duties to those performed by the individual as an employee.
Registration and claims
You must register before the end of the first JobMaker period you are claiming for (see the key dates below). For example, if you want to make a claim for the first JobMaker period (7 October 2020 to 6 January 2021), you must register by 30 April 2021.
You can claim JobMaker from 1 February 2021. You can only claim JobMaker for each additional eligible employee for up to 12 months from the time they commence employment.
You will need to provide certain information to the ATO about each additional eligible employee, including their full name, date of birth and tax file number. You will also need to provide certain information about your business, such as headcount and payroll expenses.
How much do you receive? The amount of JobMaker you receive depends on the age of the eligible additional employee when they commence employment with you. You may receive up to $200 per week for each eligible additional employee aged 16 to 29 and up to $100 per week for each eligible additional employee aged 30 to 35.
Key dates:
(Table from the ATO website)
The content of this newsletter does not constitute specific advice. Readers are encouraged to obtain advice on specific matters and not rely on this newsletter when taking actions.
Our Tax and Commercial team can assist you in this area.
George Samaras
Principal and Head of Tax and Commercial Transactions
gsamaras@samaraslawyers.com.au
Our Lawyers practice in the areas of Taxation, Family, Commercial, Property, Employment Law, Wills, Estates, Business Succession and Superannuation Lawyers
Liability limited by a scheme approved under Professional Standards Legislation. Legal practitioners employed by Samaras Lawyers Pty Ltd are members of the scheme.
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