JobMaker Hiring Credit Update January 2021

Good news starting off 2021: the JobMaker Hiring Credit legislation has now been passed into law! This credit is part of the 2020-21 Budget, which is in place until 6th October 2022. We’re breaking down what this means for you below:

JobMaker Hiring Credit

The JobMaker Hiring Credit provides eligible employers with the following payments for up to 12 months for new jobs created for which they hire the following young workers:

• $200 a week for hiring a worker aged 16 to 29 for at least 20 hours a week and

• $100 a week for those aged 30 to 35.

You can backdate the claim from 7th October 2020, and it will run for 12 months from commencement. For example, if you hire an eligible employee as late as the last day of the scheme (6th October 2021), you may be eligible for the hiring credits for the next 12 months until 6th October 2022.

Employer Eligibility

To be eligible for the JobMaker Hiring credit, you must:

• Operate a business/not-for-profit organisation in Australia

• Hold an Australian Business Number (ABN)

• Be registered for pay as you go (PAYG) withholding

• Have not claimed JobKeeper payments for a fortnight that started during the JobMaker period

• Be update to date with income tax and GST returns for the two years up to the end of the JobMaker period for which you are claiming

• Meet the payroll and headcount increase conditions (see more on this below)

It’s important to note that if you are claiming JobKeeper payments, you cannot claim the JobMaker Hiring Credit at the same time.

For more information regarding eligibility, please see here.

PAYROLL AND HEADCOUNT INCREASE CONDITIONS

Employers must meet the payroll and headcount increase conditions in order to be eligible for the JobMaker Hiring Credit.

The criteria states that for the first six months of JobMaker, there must be an increase in:

• The business’ total employee headcount (minimum of one additional employee) from the reference date of 30th September 2020; and

• The payroll of the business for the reporting period, as compared to the three-months to 30th September 2020.

ELIGIBLE EMPLOYEES

An employee will be considered eligible if they:

• commenced employment between 7th October 2020 and 6th October 2021

• were aged between 16 and 35 years at the time they commenced employment

• Have worked an average of 20-hours a week for each whole week they were employed by the qualifying entity during the JobMaker period.

They also must have met the pre-employment condition which requires that for at least 28 of the 84 days (i.e. for 4 out of the 12 weeks) immediately before the commencement of their employment, they were receiving one of the following payments:

• Parenting payment

• Youth allowance (except if the individual was receiving thus payment on the basis that they were undertaking full time study or was a new apprentice)

• JobSeeker payment.

If you have hired new employees from October 2020 or are planning to do so in the next 12 months, reach out to us for assistance on how to apply for JobMaker. And if you have any questions, please get in touch!