Making the most of the JobMaker Hiring Credit
If you are thinking about hiring any new employees from today onwards, it is worth considering if your business will be eligible to receive the JobMaker Hiring Credit. The total amount of the investment by the Government into this subsidy is $4 Billion which is a substantial amount of additional stimulus going to businesses.
- You must be an “Eligible Employer” (see below)
- You must not be claiming the JobKeeper payments
- You must be increasing your overall headcount by creating a new job. This is called “additionality criteria” and is explained further below.
- You must hire an eligible employee who is 35 years or younger at the time their employment with you commences
- The eligible employee must have been on JobSeeker, Youth Allowance or Parenting Payment for a least one month out of the three months prior to when they are hired. (Centrelink unemployment benefits).
- The worker will need to be employed for 20 hours a week averaged over a quarter (‘claim period’).
- You must not be claiming another wage subsidy from the Commonwealth in respect of the employee
How much is the credit?
For each new job created, the employer will receive a weekly credit for up to 12 months from the date of the employment. The amounts of the credits are:
|Age of Employee||Weekly Credit||Maximum Credit|
|16 – 29||$200||$10,400|
|30 – 35||$100||$5,200|
How do I claim the credit?
Registrations will open with the Australian Taxation Office (ATO) from 7 December 2020. The credit will be available quarterly in arrears from 1 February 2021 through the ATO’s online services. Employers will have three months to submit claims following the opening of the claim period. The claim periods will be the four quarters in the year commencing 7 October 2020 and ending 6 October 2021.
Am I an Eligible Employer?
To be an eligible employer, you must meet the following criteria:
- Have an ABN
- Are up to date with tax lodgement obligations and have accurate records
- Registered for PAYG withholding and reporting through Single Touch Payroll
- Not be claiming the JobKeeper subsidy in respect of any employees or business participants
- Meet the “additionality criteria”
You do not have to demonstrate a drop in turnover.
Certain banks, federal state, local governments, sovereign entities and entities in bankruptcy or liquidation are excluded.
What is the Additionality Criteria?
The criteria to demonstrate that an additional job has been created in a ‘claim period’ is calculated as follows:
- The total employee headcount at the end of the claim period has increased relative to the number of employees as at 30 September 2020 (a minimum of one additional employee is required); and
- The payroll of the business for the claim/reporting period will need to be greater than the payroll for the three months to 30 September 2020.
If the value of the payroll increase is less than the total JobMaker Hiring Credit entitlement calculated for the quarter, then the credit is capped at the lower amount.
What if I am a new employer?
If you had no employees at 30 September and then increase, you should meet the Additionality Criteria.
Who are eligible employees?
To be an eligible employee, the employee must meet the following criteria:
- 35 years or younger at the time of employment
- Worked at least 20 hours per week on average over the quarter
- Commenced employment between 7 October 2020 and 6 October 2021
- Be in their first year of employment with the employer
- Must be employed on a permanent, casual or fixed term basis
- Must have been on JobSeeker, Youth Allowance or Parenting Payment for a least one month out of the three months prior to when they are hired
We are currently upskilling our team on these new measures so that they are ready to assist with your questions.
Date published: 7 October 2020