The JobMaker Hiring Credit – Your Questions Answered
Over the last two weeks, we’ve received a number of questions concerning the JobMaker Hiring Credits. We’ve compiled this list of frequently asked questions and put them all here together.
When does the JobMaker Hiring Credit start?
The JobMaker Hiring Credit has already commenced (commencement date was 7 October 2020)
How long with the Hiring Credits last?
Employers who are eligible for the JobMaker Hiring Credits can receive the payment for up to 12 months, provided they hire an eligible young person. The initiative will close to new entrants on 7 October 2021. If you are an eligible employer and you hire an eligible employee on 6 October 2021, you could be eligible for payments for 12 months up until 6 October 2022.
What is defined as an eligible young person?
An eligible young person, under the JobMaker Hiring Credit, is someone aged 16 – 35 years. For employees aged 16 to 29 years, employers can claim $200/week. For employees aged 30 to 35, employers can claim $100/week.
Am I eligible to claim the JobMaker Hiring Credit?
In order to claim the Hiring Credit, you need to meet the following eligibility criteria:
- Meet the additionality criteria:
- there must be an increase in the business’ total employee headcount (minimum of one additional employee) from the reference date (30 September 2020); and
- there must be an increase in the payroll of the business for the reporting period, as compared to the three months to the reference date.
- You are claiming for an eligible employee:
- be aged 16 to 35 years old, at the commencement date of employment;
- have worked at least 20 paid hours per week on average for the full weeks they were employed over the reporting period;
- begin their employment between 7 October 2020 and 6 October 2021;
- have received the JobSeeker payment, youth allowance (other), or parenting payment for at least one month within the past three months before they were hired — as a result, employees who look to change employers but were receiving JobKeeper payments immediately prior to that change will not be eligible;
- be in their first year of employment with this employer, reflecting that the hiring credit is only available for 12 months for each additional job; and
- be employed for the period that the employer is claiming for them.
- You have kept adequate records of the hours worked (or paid for) by the employee you are claiming the JobMaker Hiring Credit for
- You have an ABN (Australian Business Number)
- You are up to date with your tax lodgements
- You are registered for PAYG (pay as you go) withholding
- You are reporting through Single Touch Payroll (STP): Employers that are not reporting through STP can visit the ATO website for details on how to enrol: www.ato.gov.au/Business/Single-Touch-Payroll/
How do I register for the JobMaker Hiring Credit?
Registrations for eligible employers will open from 7 December 2020. You don’t need to be registered at the time of hiring in order to be eligible, and registration can occur at any time before making a claim.
When can I lodge my claim for the JobMaker Hiring Credit and when will it be paid?
You can submit your claim from 1 February 2021 for new jobs created in the first reporting period (7 October 2020 to 6 January 2021). You’ll have three months to submit your claim following the opening of the claim period. The JobMaker Hiring Credit will be paid quarterly in arrears.
If you have any questions or concerns regarding the JobMaker Hiring Credits, please contact Greenhalgh Pickard today