The JobMaker Hiring Credit Scheme Explained

What is Jobmaker?

The JobMaker Hiring Credit was a measure introduced by the Scott Morrison and the Australian Government to give incentive to employers to hire young job seekers. Employers can claim payments to help support the new employee’s wage cost, but are not required to pass the payment on to their employees.

Employers who meet the eligibility criteria for the JobMaker scheme will receive up to $200 per week for additional employees aged 16-29 years and up to $100 per week for those aged 30-35 years, up to a total amount of $10,400 per year.

Details of the Scheme:

1. The credit is paid every three months in arrears to employers
2. It can be claimed from 1 February 2021 for the first JobMaker period (7 October 2020 to 6 January 2021).

You and your additional employees must meet the eligibility criteria for each JobMaker period you want to claim for.

You can register at any time until the program closes. You only need to register once. However, you must register before the end of the claim period for the first JobMaker period you want to claim for.

Eligibility Guidelines for Employees:

For an employee to be eligible for the scheme, they must:

1. Be an employee of the entity during the JobMaker period
2. Be aged 16–35 years old when they started employment
3. Have started employment on or after 7 October 2020 and before 7 October 2021
4. Have worked or have been paid for an average of at least 20 hours per week they were employed in the JobMaker period
5. Have completed a JobMaker Hiring Credit employee notice for the employer
6. Have not already provided a JobMaker Hiring Credit employee notice to another current employer
7. Have received one of the below payments for at least 28 consecutive days (or 2 fortnights) in the 84 days (or 6 fortnights) prior to starting employment:
   1. JobSeeker Payment
   2. Parenting Payment
   3. Youth Allowance (except if they were receiving the allowance because they were undertaking full-time study or are a new apprentice).

Eligibility Guidelines for Employers:

As an employer wishing to take advantage of the Scheme, you must:

1. Have an Australian Business Number (ABN)
2. Be registered for pay as you go (PAYG) withholding
3. Report through Single Touch Payroll (STP)
4. Be up-to-date with their tax lodgement obligations
5. Claim the credit in respect of an eligible employee
6. Have kept adequate records of paid hours worked by the eligible employee
7. Show an increase in both their total employee headcount from 30 September 2020 and increase their payroll for the reporting period (7 October 2020 to 6 October 2021) compared to the three months to 6 October 2020.

What are the key dates?

30 September 2020 – the reference date for comparison of increased employee headcount and payroll (as compared to the previous three months)

7 October 2020 – the date from which credit claims are valid (employees must commence employment after this date)

7 December 2020 – registrations open for eligible employers via ATO online services

6 January 2021 – end of the first reporting period

1 February 2021 – the date from which the first credit can be claimed quarterly in arrears from the ATO, for new jobs created between 7 October 2020 and 6 January 2021

6 October 2021 – the end of the eligibility period for credit claims (employees must commence before this date)

Contact RBK advisory for further information about the JobMaker Hiring Credit, and advice on how to register for the scheme.