On 6 October 2020 as part of the 2020–21 Budget, the Government announced the $74 billion JobMaker Plan.
Of this amount, they have set aside $4 billion dollars for a JobMaker Hiring Credit and an additional $1.2 billion for the Boosting Apprenticeships Wage Subsidy to support new apprentices and trainees.
They hope that these incentives will help to bring young people back into the workforce and build their skills. Rather than having the risk of becoming unemployed for the long-term and reliant on welfare.
In this article, we’ll answer some of your FAQ’s relating to JobMaker. We’ve also included a Fact Sheet for easy reference.
Who’s eligible for the JobMaker Hiring Credit?
According to the ATO, the JobMaker Hiring Credit will be available to employers for each new job they create over the next 12 months from 7 October 2020.
That is if they hire an eligible young person who is:
- aged 16 to 35 years old and
- has evidence of receiving income support payments (such as JobSeeker, Youth Allowance, or Parenting Payment) for at least one of the three months before they were hired.
For each eligible employee, employers will receive for a period up to 12 months:
- $200 a week (if an eligible young person aged 16 to 29 years is hired); or
- $100 a week (if an eligible young person aged 30 to 35 years is hired).
To qualify for the payment, eligible employees must have worked an average of at least 20 hours per week over the quarter for the employer.
Employees that start and/or stop employment during a quarter must meet a similar test based on the length of time in employment.
NOTE: You cannot claim JobKeeper and JobMaker Hiring Credits at the same time.
The employer must also:
- hold an Australian Business number (ABN)
- be up-to-date with your tax lodgement obligations
- be registered for Pay As You Go (PAYG) withholding
- report their employees’ payroll info to the ATO through Single Touch Payroll.
- demonstrate that they increased their overall employment to receive the JobMaker Hiring Credit for a period up to 12 months for each position created.
Further eligibility conditions will apply to employers based on the employer’s headcount and payroll on 30 September 2020.
They only want employers to receive payments for additional jobs created rather than for replacing existing employees.
To read about this in depth, download this Fact Sheet from the Government website.
1) How can I register for the JobMaker Hiring Credit?
You will need to register with the ATO and make claims quarterly. The first claim will commence February 2021.
2) How and when do I lodge a claim for the JobMaker Hiring Credit?
Employers can submit claims from 1 February 2021 (for new jobs created in the period of 7 October 2020 to 6 January 2021).
Employers will have three months to submit claims, following the opening of the claim period.
3) When will I receive the JobMaker payments?
The JobMaker credit will be paid quarterly in arrears.
For more answers to your FAQ’s, please download the JobMaker Fact Sheet.
If you need help with getting set up on Single Touch Payroll for eligibility purposes, please give us a call on (03) 9762 7344.