JobMaker hiring credit

COVID-19 measures

The JobMaker Hiring Credit scheme (“JobMaker”) is a new government incentive in response to the COVID-19 economic crisis. Eligible employers can access JobMaker for each eligible additional employee aged 16 to 35 they hire between 7 October 2020 and 6 October 2021. The program will last for 2 years until 6 October 2022.

Are you eligible?

To be eligible for JobMaker, you must:

  • operate a business in Australia (not-for-profit organisations operating in Australia and certain deductible gift recipients (DGRs) are also eligible);
  • hold an active ABN;
  • be registered for PAYG withholding;
  • satisfy the payroll increase and the headcount increase conditions – see below;
  • not have claimed JobKeeper payments for a fortnight that started during the JobMaker period (see the table below for the JobMaker periods);
  • be up to date with income tax and GST returns for the 2 years up to the end of the JobMaker period for which you are claiming (this requirement is adjusted for new businesses);
  • be registered with the ATO for the scheme – see below; and
  • satisfy reporting requirements, including up to date Single Touch Payroll (STP) reporting (see the table below).

Certain categories of employer are not eligible, for example, companies in liquidation or provisional liquidation, individuals who have entered bankruptcy, major banks and Australian government agencies.

Payroll and headcount conditions

You must employ one or more eligible additional employees, resulting in a genuine increase in both:

  • your total employee headcount from 30 September 2020 (a different reference point applies for the last 4 JobMaker periods); and
  • your payroll for the JobMaker period, compared to the 3 months up to 6 October 2020.

An individual is an “eligible additional employee” if they:

  • were employed by you at any time during the JobMaker period;
  • commenced employment between 7 October 2020 and 6 October 2021;
  • were aged between 16 and 35 years at the time they commenced employment;
  • worked or were paid for an average of 20 hours a week for each whole week they were employed by you during the JobMaker period; and
  • received certain income support payments, e.g. JobSeeker or Parenting Payment, for at least 28 consecutive days (or 2 fortnights) within the 84 days (or 6 fortnights) before being hired.

The employee must also provide you with a notice containing relevant information.

Certain individuals cannot qualify as an eligible additional employee, including:

  • relatives;
  • partners if your business is operated through a partnership;
  • directors and shareholders if your business is operated through a company; and
  • anyone who, at any time between 6 April 2020 and 6 October 2020, you engaged as a contractor or a subcontractor and who performed substantially similar duties to those performed by the individual as an employee.

Registration and claims

You must register before the end of the first JobMaker period you are claiming for (see the key dates below). For example, if you want to make a claim for the first JobMaker period (7 October 2020 to 6 January 2021), you must register by 30 April 2021.

You can claim JobMaker from 1 February 2021. You can only claim JobMaker for each additional eligible employee for up to 12 months from the time they commence employment.

You will need to provide certain information to the ATO about each additional eligible employee, including their full name, date of birth and tax file number. You will also need to provide certain information about your business, such as headcount and payroll expenses.

How much do you receive?

The amount of JobMaker you receive depends on the age of the eligible additional employee when they commence employment with you.

You may receive up to $200 per week for each eligible additional employee aged 16 to 29 and up to $100 per week for each eligible additional employee aged 30 to 35.

 

Key dates

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
3 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

(Table from the ATO website)

Integrity measures

You will not be eligible for JobMaker if you enter into an arrangement to artificially inflate your headcount or payroll, by terminating or reducing the hours of an existing employee in an attempt to access JobMaker or increase payments.

If you claim JobMaker, you will not be able to claim other Australian Government wage subsidies, such as the Supporting Apprentices and Trainees Wage subsidy and the Australian Apprentice Wage subsidy.

Tax consequences

All JobMaker payments are assessable as ordinary income. Salary and wages paid to employees that are subsidised by JobMaker continue to be deductible.

JobMaker is:

  • not subject to GST; and
  • does not need to be included in your business activity statements (BAS).

Tip! Talk to your tax adviser if you think you may qualify for JobMaker.

 

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