The Government’s JobMaker scheme has created 609 new jobs since registrations opened on 1 February 2021, despite around 15,000 businesses registering their interest in the scheme.

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 a week for new employees between 30 to 35 years of age. Payment is from the start date of the employee for 12 months. To date, around 70% of employers taking advantage of the credit are micro-employers with another 20% from the SME sector.

Unlike JobKeeper, the employer keeps the JobMaker payment and does not pass it onto their employee.

One of the reasons for the low take up rate, beyond a general lack of awareness in the business community, is likely to be the complexity of the JobMaker scheme versus the reward. There are a number of tests and compliance requirements at both the employer and employee level including an ‘additionality test’ that requires the total headcount of the business to remain above a baseline number of employees. That is, if you employ an eligible employee and an existing employee resigns, the benefit cancels out because there is no longer an increase in total headcount.

In addition, JobMaker only applies where an employer takes an employee from the unemployment queue. That is, the employee had to be receiving the JobSeeker Payment, Youth Allowance or Parenting Payment for at least one month within the three months before they were hired.

It is possible that more businesses will start to take advantage of the scheme now that the JobKeeper scheme has finished. Businesses that were still eligible for JobKeeper could not generally access JobMaker at the same time.

The Treasurer has stated that the Government will review the design of the JobMaker program in the upcoming Federal Budget with only $800,000 of the $4 billion scheme’s budget distributed.

Are you eligible 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)

The employer’s:

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.

Key dates for the JobMaker scheme:

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.

Further help

If you need help with your JobMaker or JobKeeper claims, please contact Marsh & Partners to discuss your options. You can reach us on (07) 3023 4800 or at mail@marshpartners.com.au.

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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