Everything You Need to Know About JobMaker Hiring Credit

Wednesday December 16, 2020

In a bid to continue supporting Australia’s economic recovery, the Federal Government has launched a new scheme called JobMaker. JobMaker encourages employers to create new roles while helping young people find work. While the JobMaker scheme covers more than one component, in this blog, we’re focusing on Hiring Credits.

What are JobMaker Hiring Credits?

JobMaker Hiring Credits are an incentive for eligible businesses. Their purpose is to provide financial credits for each additional position created for an eligible job seeker between 7 October 2020 to 6 October 2021.

How it works

From 7 October this year, eligible employers can claim hiring credits for newly created roles. For an eligible employee aged 16 to 29 who is hired in a newly created position, employers will receive $200 a week. For an eligible employee aged 30 to 35 who is hired in a newly created position, employers will receive $100 a week.

New positions created from 7 October 2020 till 6 October 2021 will attract the JobMaker Hiring Credit for up to 12 months from the date the position is created.

The credit can be claimed quarterly in arrears from 1 February 2021 and employers will need to report quarterly to show they meet eligibility criteria. The credit will be paid to employers – not employees.

Registrations for JobMaker opened on 7 December 2020 and can be completed at any point prior to claiming. Employers who don’t report through STP can visit the ATO website for details on how to register.

Eligibility requirements for employers

It’s great to note, employers don’t need to meet a fall in turnover to be eligible. However, they must meet the following criteria:

  • They have an Australian Business Number (ABN)
  • Their tax lodgements are up to date
  • They’re registered for Pay As You Go (PAYG)
  • They are reporting through Single Touch Payroll (STP)
  • The role is in addition to any existing roles in the business
  • The new employee must also meet certain eligibility criteria (explanation below)
  • The employer has accurate records of the paid hours the new employee has worked during the claim period

What if I’m starting a new business?

New businesses created but without registered employees on 30 September 2020 are able to claim the JobMaker Hiring Credit for the second person hired as well as any subsequent new hires. Obviously, the business must meet the JobMaker eligibility criteria.

Eligibility requirements for employees

For employees hired into a newly created position to be eligible for the scheme, they must:

  • Be between the ages of 16 and 35 when they start working in the new role
  • Work for a minimum of 20 hours per week during the 12-month period
  • Commence their employment between 7 October 2020 and 6 October 2021
  • Have received the Youth Allowance (Other), JobSeeker Payment or Parenting Payment for at least one of the three months preceding their employment
  • Be in their first year of employment with the employer
  • Be employed for the period the employer is claiming for them

Eligible employees need to complete a nomination form in which they declare they meet the eligibility requirements for the JobMaker Scheme. This includes a requirement that they haven’t completed a JobMaker nomination form for another employer they are working for.

Employees may be employed on a casual, permanent, or fixed-term basis.

Contact the HR Dept for more information on how the JobMaker scheme works and what you need to do as an employer.

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