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The JobMaker Hiring Credit

What is JobMaker?

JobMaker is a credit available to eligible businesses and non-profit entities that create new jobs (not if you are merely replacing someone who left). The hiring credit is available for jobs created from 7 October 2020 until 6 October 2021 and provides:

  • $200 per week for new employees between 16 to 29 years of age; and
  • $100 per week for new employees between 30 to 35 years of age.

Administered by the ATO, JobMaker is a credit that is paid quarterly in arrears from the start date of the employee for 12 months, assuming the business and employee remains eligible.

The credit is an incentive for the employer to support wage costs and is not passed onto the employee.

 

Eligible Employers

“At the time of enrolment, the business must”

  • Have an ABN
  • Carry on a business in Australia, or is a non-profit that pursues its objectives mainly in Australia, or a DGR that meets certain conditions
  • Be registered for PAYG withholding

“At the time a JobMaker claim is submitted for a period, the business must”

  • Be an eligible employer
  • Be up to date with certain tax lodgements (tax returns, GST returns)
  • Have at least one additional employee
  • Have increased headcount
  • Have increased payroll
  • Not be receiving other forms of assistance from the Commonwealth Government for the employee, for example JobKeeper or an apprenticeship subsidy

“And”

  • Elect to participate in the JobMaker scheme
  • Report through single touch payroll (there are some limited exceptions)
  • Submit a claim to the ATO for the JobMaker period
  • Keep adequate records (hours worked by the employee the employer is claiming for)
  • Another employer is not claiming JobMaker for the same employee

Eligible Employees

“The employee must”

  • Have received the JobSeeker Payment, Youth Allowance (Other) or Parenting Payment for at least 28 consecutive days (or 2 fortnights) in the 84 days (or 6 fortnights) prior to starting employment
  • Be at least 16 years old and less than 36 years of age at the time their employment started
  • Started work between 7 October 2020 and 6 October 2021 (inclusive)
  • Worked or been paid for at least 20 hours per week on average+ for the full weeks employed for the period being claimed
  • Not be an excluded employee

A series of people are excluded from the JobMaker scheme including employers receiving JobKeeper, employees receiving an apprentice wage subsidy, and close associates of the business including some relatives of the business owners.

Additionality Test

“To access the JobMaker payment, an employer must demonstrate”

  • Total employee headcount on the last day of the reporting period increased by at least one additional employee compared to baseline headcount.
  • Total payroll for the reporting period increased compared to baseline payroll.

 

This is how we can help you

The Gild Group (“Gild”) are ready to assist you with everything JobMaker. Like JobKeeper, we are offering you the following two solutions:

“Let Gild manage the registration process”

If you would like Gild to manage the process for you, please contact your Gild Client Manager as soon as possible so that we have plenty of time to review your eligibility.

Gild is offering a reduced hourly rate from our tax & advisory team to help navigate the set up and eligibility process. Our fee will be $250 + GST per hour to determine eligibility and register you.

Similar to JobKeeper, there are reporting requirements back to the tax office to report headcount and payroll for a period. Your business is only eligible for JobMaker payments if the headcount and payroll have increased against your baseline for the relevant period. Calculating the JobMaker amount can be complex. Ongoing fees for reporting headcount and payroll for a period will be charged at your standard bookkeeping hourly rates. Please confirm with your Client Manager if you are unsure of your rate.

“Complete my own registration”

Please confirm with your Gild Client Manager that you will manage the registration process yourself, then keep an eye on the ATO website for details on the step-by-step process.

 

Find Out More

 

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