JobMaker Hiring Credit Scheme Employer Eligibility
The government recently announced the JobMaker Hiring Credit scheme, incentivizing businesses to employ young job seekers. By covering new employee's wage costs, the scheme aims to help Australian employers hiring new people and increase the chances of employment for people aged 16-35. Under ATO's administration, eligible employers can receive up to $10,400 per year for the JobMaker Hiring Credit scheme.
The scheme comes with some eligibility criteria for employees and employers. It also has some strict rules about terminating employment or reducing hours of current employees in order to qualify for the scheme. In this article, we'll be explaining the requirements for eligible employers and how they can claim the JobMaker hiring support, by answering some common questions.
What is the JobMaker Hiring Credit Scheme? When does it start?
The JobMaker Hiring Credit Scheme is a program designed to boost employment by covering the cost of new employees.
Employers receive the JobMaker Hiring Credit for up to 12 months for each new eligible additional employee (see the employee eligibility here) they hire between 7 October 2020 and 6 October 2021.
JobMaker Hiring Credit is paid in each JobMaker period that the employers and employees are eligible for. The first JobMaker period is from 7 October 2020 to 6 January 2021 and employers can claim their credits from 1 February 2021.
Employers can start claiming payments in arrears if you have a qualified employee hired after 7 October 2020.
How much money can employers get under the JobMaker Hiring Credit Scheme?
Employers can get up to $10,400 per year. The payment rate depends on the age of each eligible additional employee hired during the scheme. It is the age when your employee started working with you.
$200 per week - the employee is between 16 and 29 years old (inclusive)
$100 per week - the employee is between 30 and 35 years old (inclusive)
What are the eligibility rules for employers?
In order to receive the JobMaker Credit Scheme payments, eligible employers must:
have an Australian Business Number (ABN)
be registered for pay as you go (PAYG) withholding
have not claimed other wage subsidies such as JobKeeper payments for a fortnight that started during the JobMaker period (7 October 2020 to 6 January 2021)
be up to date with the tax lodgements for the two years up to the end of the JobMaker period for which they are claiming
have increased payroll and headcount (check details here)
keep up-to-date STP reports
What immediate criteria must your potential JobMaker employee have?
The person must have received one of the following:
JobSeeker Payment
Parenting Payment
Youth Allowance (except if you are receiving the allowance because you are undertaking full-time study or are a new apprentice)
They MUST have received one of these payments listed above for at least 28 consecutive days (or two fortnights) in the 84 days (or 6 fortnights) PRIOR to starting employment.
What makes an employer ineligible for the JobMaker Hiring Credit Scheme?
Even though they have all the requirements above, an employer won't be able to receive JobMaker support if they:
are owned by an individual who entered bankruptcy
are owned by an Australian government agency or local governing body
entered a liquidation process
had the Major Bank Levy imposed
Additionally, any business who terminates the employment or reduces the hours of existing employees in order to receive support from JobMaker Hiring Credit Scheme will be disqualified. The reduced employee headcount and payroll during a reporting period (three months) disqualifies the employer for that period's payment.
How to register?
As an employer, before looking for the registration process you need to make sure that you are eligible. Check the criteria above and ATO's guide. Keep in mind that both your business (or not-for-profit organization) and each employee you are considering hiring must meet the eligibility criteria.
You also need to have an STP-enabled software since employee nominations, employee details, and JobMaker Hiring Credit payment claims need to be reported through an STP-enabled software.
If you are eligible
Register for the JobMaker Hiring Credit scheme on ATO website. You can use (ATO online services, business portal, or online services for businesses)
Once you identify, nominate and report your eligible additional employees, you can claim your credit in each JobMaker period.
If you are not familiar with the process, ask your registered tax or BAS agent. They can help you or even claim on your behalf. Here at Sensible Solutions, we help local businesses with the whole JobMaker Hiring Credit scheme, including the registration.
Eligible Employees
The eligibility criteria for employees to benefit from the JobMaker Hiring Credit Scheme are given below. Your employees are eligible if they:
Are aged aged between 16 and 35 years old (see the payments above) at the time of employment
Started their employment during the 12 month period of the scheme (from 7 October 2020 to 7 October 2021)
Worked (or were paid) for at least 20 hours per week (on average) in the JobMaker period. Paid leave, paid overtime and paid absences on public holidays are included in the hours. Keep in mind that unpaid leaves are not counted towards the minimum of 20 hours work per week average
Provided a JobMaker Hiring Credit employee notice to their employers
Have not completed a JobMaker Hiring Credit employee notice to another current employer
Received JobSeeker Payment, Parenting Payment, or Youth Allowance for at least 28 consecutive days (or 2 fortnights) with the 84 days (or six fortnights) before starting their employment. Please note that employees who were receiving Youth Allowance because they were taking full-time study or were a new apprentice do not qualify.
Ineligible Employees
Even though an employee meets all the eligibility above, an employer can not claim JobMaker hiring credit for any additional employee if they:
are the relatives of the employer or their spouse
are business participants (sole traders, partners, directors, shareholders, etc.)
started working before 6 October 2020 or after 7 October 2021
previously engaged with the business other than as an employee (contractors, subcontractors, etc.)
are younger than 15 years old or older than 36 years old when they started employment
are employed by an entity that receives a wage subsidy under another Commonwealth program
JobMaker Employee Notice
Before an employer makes a claim for the JobMaker Hiring Credit Scheme, the employees must complete a JobMaker employee notice. They can either complete themselves or ask their employees to do it for them.
What are the JobMaker Hiring Credit key dates?
JobMaker Hiring Credit scheme starts on 7 October 2020 and ends on 6 October 2022. There will be 8 JobMaker Hiring Credit scheme periods. You can find these periods, as well as the STP reporting due dates in the table below.
| 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 |
What to do next?
JobMaker Hiring Credit Scheme can help businesses and employees hurt by COVID-19 by offering employment opportunities through supporting employers for each new eligible additional employee aged 16-35.
If you are an eligible employer, you can go ahead and see if the people you want to hire are eligible employees. Then, register and claim your credit.
Additional Resources
If you want to read more about the JobMaker Hiring Credit Scheme, check the resources below:
We are here to help
Do you need to learn more about the JobMaker Hiring Credit Scheme? Give us a call, send an email or pay us a visit in our office. We will be more than happy to help you. You can learn about the eligibility criteria, how the scheme works, payment rates, registration, reporting, claim process, and more.