On the 1st February 2021 the Australian Government opened up the first claim period for the JobMaker Hiring Credit Scheme. This first claim period is open until the 30 April 2021, however the scheme itself will run until 6 October 2022.
You may recall from last year, the JobMaker Hiring Credit Scheme is a new government initiative providing incentive to businesses who employ additional young job seekers.
The JobMaker Hiring Credit will be claimed quarterly in arrears by the employer from the ATO from 1 February 2021. Employers will need to report information about their entitlement quarterly.
Key take outs
- Businesses must show an increase in both employee headcount and payroll with incentive payments received being reflective of the number of eligible employees hired.
- Under the scheme businesses can receive incentive payments for up to 12 months for each eligible additional employee hired between 7 October 2020 and 6 October 2021.
- Eligible employers may receive payments of up to $200 per week for each eligible additional employee hired between the ages of 16-29 and up to $100 per week for eligible employees hired between the ages of 30 and 35.
- To satisfy the requirements of the scheme eligible employees must have received income support payments (including the JobSeeker Payment, youth allowance or Parenting Payments) for at least 28 consecutive days (or two fortnights) within the 84 days (six fortnights) before being hired.
- Eligible employees must also be completing a minimum of 20 hours paid work per week for their employer to qualify for incentive payments.
- Eligible employers have registered, operate a business in Australia, have an ABN, are registered for pay as you go withholding, have not claimed JobKeeper payments for a fortnight that started during the JobMaker period, report using Single Touch Payroll, and are up to date with income tax and GST returns.
Businesses are able to register for the JobMaker Hiring Credit Scheme through the following avenues:
- ATO Online Services
- The Business Portal
- Your registered tax or BAS Agent
If you wish to seek further information on the registration process, read more.
The devil of course is always in the detail, however should you wish to discuss further, please do not hesitate to contact your Fordham Partner.
This information has been prepared by Fordham Business Advisors Pty Ltd (Fordham) ABN 77 140 981 853 AFSL 488639 and Perpetual Trustee Company Limited (PTCo) ABN 42 000 001 007, AFSL 236643. Perpetual Private advice and services are provided by PTCo. To view the Perpetual Group's Financial Services Guide, please click here. Fordham’s liability is limited by a scheme approved under Professional Standards Legislation.
This information, including any assumptions and conclusions, is not intended to be a comprehensive statement of relevant practise or law that is often complex and can change. It is general information only and is not intended to provide you with advice or take into account your objectives, financial situation or needs. You should consider, with a financial adviser, whether the information is suitable for your circumstances. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. This information is believed to be accurate at the time of compilation and is provided in good faith. Fordham is part of the Perpetual Limited group.