The JobMaker Hiring Credit was passed into law in November. As an employer, this could provide over $10,000 over 12 months to hire a much-needed new staff member. As the economic recovery from the coronavirus gets underway, leveraging such supports might give you an edge to get your business back on track sooner.
JobMaker is a key element of the 2020-21 Federal Budget with $74 billion proposed in a range of initiatives to get Australians back to work. The JobMaker Hiring Credit enables business owners to access up to $200 per week (paid quarterly) for bringing on board new and eligible staff members aged from 16-35 years old. The scheme is set to run for 12 months and is administered through the ATO.
JobMaker Registrations - NOW OPEN!
An employer must first register for the JobMaker hiring credit. It pays to register early even if you are not currently eligible. If you become eligible over the next 12 months you will be in a better position to receive the first round of eligible payments. The first of which will be paid on 1 February 2021.
Who is Eligible for JobMaker?
JobMaker Hiriing credit is comprised of two levels of payments:
- $200 per week – for every new eligible staff member aged 16-29 years old
- $100 per week – for every new eligible staff member aged 30-35 years old.
To be eligible for JobMaker, your employees must:
- Be aged 16-35 years old
- Have been hired after 7 October 2020 and before 6 October 2021.
- Work a minimum of 20 hours per week (averaged over the quarter)
- Have received a JobSeeker, Youth allowance or Parenting payment for at least 4 consecutive weeks during the previous three months prior to employment.
As an employer, to be eligible for JobMaker, you must:
- Not currently be receiving JobKeeper payments
- Be registered for PAYG Withholding tax
- Hold an Australian Business Number (ABN)
- Be up to date with tax lodgements
- Be reporting to the ATO via Single Touch Payroll
How do I Register for JobMaker?
Registration is completed via the ATO online services or business portal. Information such as your baseline headcount and baseline payroll amount will be required. A Registered Tax agent can also assist you with the correct registration for your business now to ensure you can claim payments if and when you hire new and eligible staff.
How do I Claim my JobMaker Hiring Credits?
JobMaker Hiring credits need to be claimed each quarter. The first payment is claimable from 1 February 2021. This is also available through ATO online services or the Business Portal. Here you will need to verify your eligibility, nominate your eligible employees and ensure your headcount and payroll expenses have increased during the claiming period. You will then be able to complete the payment transfer details.
Getting Help with JobMaker Hiring Credits
Completing a new process for the first time is always confusing. It pays to get help to ensure you are doing the right thing to be eligible to claim credits. Saige Accountants are Registered Tax Agents and are across all the new JobMaker Hiring Credit registration and claiming process. Let us help you access this much needed hiring credit to help your business get back on track.