On 6 October 2020, as part of the 2020–21 Budget, the government announced a new incentive for businesses to employ additional young job seekers called the JobMaker Hiring Credit. The JobMaker Hiring Credit is administered by the ATO.
Eligible employers can access to the JobMaker Hiring Credit scheme for eligible additional employees they hire between 7 October 2020 and 6 October 2021, for a maximum claim period of 12 months from their employment commencement date.
Through the JobMaker Hiring Credit scheme, eligible employers may receive payments of up to:
- $200 per week for each eligible additional employee aged 16–29 years old inclusive
- $100 per week for each eligible additional employee aged 30–35 years old inclusive
Eligibility for JobMaker
There are three eligibility tests for JobMaker:
1. Employer Eligibility
- Has an ABN.
- Up to date with tax lodgements.
- Registered for PAYG.
- Reporting through single touch payroll.
- Keeps adequate records of the paid hours worked by the employee they are claiming for.
- Another employer is not claiming JobMaker for the same employee.
2. Employee Eligibility
- Received the JobSeeker Payment, Youth Allowance (Other) or Parenting Payment for at least one month within the three months before they were hired.
- Between 16 and 35 years of age at the time their employment started.
- Worked at least 20 hours per week on average for the full weeks employed for the period being claimed. If the employee worked less than 20 hours, the employer cannot claim JobMaker for them during that period.
- Started work between 7 October 2020 and 6 October 2021.
- The first year of employment with the employer.
- The employer is not receiving other forms of assistance from the Commonwealth Government for the employee, for example JobKeeper or an apprenticeship subsidy.
- Must not be an associate of the employer.
3. Additional Employee Test (Additionality Test)
- Total employee headcount on the last day of the reporting period increased by at least one additional employee compared initially to 30 September 2020, then to the previous reporting period.
- Total payroll for the reporting period increased compared initially to the September 2020 quarter (July, August, September 2020), then to the previous reporting period. The hiring credit cannot exceed the increase in payroll.
Government entities or agencies, banks and other institutions subject to the bank levy, businesses in liquidation, and foreign Government entities (unless a resident entity), are unable to access JobMaker.
Registering for JobMaker Hiring Credit
Eligible employers can register for the JobMaker Hiring Credit scheme from 6 December 2020.
Employers must register by the due date for the first JobMaker period they are claiming for.
Once registered, eligible employers can claim the JobMaker Hiring Credit payment for each JobMaker period. You can make a claim for the first JobMaker period from 1 February 2021.
You do not need to be registered before you hire eligible employees, but you should first check your eligibility for the scheme. You can then register at any time before the end of the claim period.
To complete their registration for the JobMaker Hiring Credit, employers must provide their:
- baseline headcount
- baseline payroll amount
- contact details
This information can be provided through either:
JobMaker payment estimator
The ATO has released an estimator tool for employer clients who are keen to get a feel for the amount of JobMaker payments that their situation will generate. The estimator does not determine eligibility, and the calculated results are based solely on the information provided at the input details section. The ATO emphasises that the exact amount of your JobMaker Hiring Credit payment will be calculated only when you complete your claim form.
Key dates for JobMaker:
6 December 2020 – registrations open
You can register from 6 December 2020. You only need to register once, and you must register by the due date of the first JobMaker period you are claiming for. For example, if you want to make a claim for the first JobMaker period, you must register by 30 April 2021.
1 February 2021 – first claim period opens
You can claim JobMaker Hiring Credit payments from 1 February 2021 as long as you have registered and met the other eligibility requirements (including reporting through Single Touch Payroll).
30 April 2021 – first claim period closes
You can only claim JobMaker Hiring Credit for the first JobMaker period until the end of 30 April 2021. You must claim by the end of the claim period to receive JobMaker Hiring Credit for that period.
Claim period dates for later JobMaker periods are set out in the table below.
6 October 2022 – scheme ends
The JobMaker Hiring Credit scheme will end on 6 October 2022.
STP reporting due date
You must meet the STP reporting obligations for each JobMaker period you are claiming for. Your STP reporting is due three days before the end of the relevant JobMaker claim period.
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|
|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|
Frequently asked questions:
I can only claim JobMaker if the number of employees and payroll increases. What happens if one of my team resign? Through no fault of the business?
Your business can only receive JobMaker for your eligible employees if total employee headcount and payroll increases. If the headcount or payroll decreases or remains the same, JobMaker cannot be claimed for that period.
For example, if you had three staff at September 2020 and hired an additional two employees in late October 2020, your business can claim JobMaker for the two new employees assuming the business and the employer are eligible and payroll has increased compared to the September 2020 quarter. However, in December 2020, one of your original staff members resigns. As a result, your business can only claim JobMaker for one eligible employee in December as your headcount has increased by one, not two, compared to the September 2020 baseline.
A similar baseline concept applies to payroll. If you employed new eligible employees in October 2020 but your overall payroll remained the same or only increased marginally because the hours of your existing staff reduced when the two new employees were employed, then the JobMaker credit will only be the additional payroll amount. That is, if the JobMaker credit for the two employees for the quarter is $8,960, but payroll compared to the September 2020 quarter only increased by $1,200, then the JobMaker credit you receive would be $1,200. The JobMaker credit cannot exceed the increase in payroll.
Each month, employers will need to ensure they pass these ‘additionality’ tests before claiming.
Your headcount and payroll increase is measured on the last day of each reporting period from the date your first new employee started. For example, if your first new employee joined in October 2020, your baseline is set at that point. If a new employee starts in January 2021, your payroll and headcount baseline is measured from the last reporting period, in this case, December 2020 for headcount and the December quarter for payroll. That is, your baseline commences from the date your new employee starts and then is reassessed each reporting period to ensure there is an increase.
If I don’t hire new staff until January 2021, can I claim JobMaker for 12 months or only up to 6 October 2021?
JobMaker is available for 12 months for eligible employees hired from 7 October 2020 until 6 October 2021. If you hire new employees from January 2021, JobMaker is available for 12 months for these employees assuming that the employees and business are eligible and the ‘additionality’ test is passed.
The baseline for the ‘additionality’ tests – headcount and payroll – starts from the start date of your new employee. The Government has indicated that the baseline for the ‘additionality’ test will be adjusted in the second year of the program to ensure an employer can only receive JobMaker for 12 months for each additional position created. The detail of exactly how these rules will work has not been released as yet.
Can the business get JobKeeper and JobMaker?
No. Once your business exits JobKeeper and is no longer receiving JobKeeper payments for any employees or business participants, if eligible, the business could then start to receive JobMaker credits. The business is eligible for the hiring credit in the reporting period following your JobKeeper exit date.
If you need help or clarification, feel free to contact Marsh & Partners to discuss your options. You can reach us on (07) 3023 4800 or at email@example.com.
You can find out more about working with Marsh & Partners here. As your Absolute.Account.Ability partner we’re on a mission to make your business life better. We’ll help you set goals for your business, devise an Action Plan to make them happen and meet with you regularly to ensure you stay on track.
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