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JobMaker Hiring Credit - what it is and who can apply

Registrations for the JobMaker Hiring Credit opened on 7 December 2020. Read on for eligibility and application details.

Last updated: 7 December 2020

The Australian Government has introduced the JobMaker Hiring Credit. The payment provides an incentive for employers to hire young job seekers, by delivering a payment to employers to help support the new employee’s wage costs.

Eligible employers can receive the payment for up to 12 months for each new eligible additional employee they hire between 7 October 2020 and 6 October 2021.

How much is it worth?

Up to $10,400 per year. Employers will be credited up to $200 a week for additional employees aged 16 to 29 years and up to $100 a week for those aged 30 to 35 years who meet the eligibility criteria.

What are the eligibility rules?

The new employee must:

  • be aged between 16 to 35 years at the start of their employment
  • have received the JobSeeker Payment, Youth Allowance or Parenting Payment for at least for at least 28 consecutive days within the 84 days prior to being employed in their new position
  • have worked at least 20 paid hours per week on average for the full weeks they were employed during the reporting period
  • complete an employee notice for JobMaker Hiring Credit supplied by their employer
  • have not completed a JobMaker employee notice for another employer they are still working for.

The employee must not:

  • be an employee for whom the employer is receiving another Commonwealth wage subsidy such as an apprenticeship or traineeship wage subsidy
  • be an employee for whom another employer is claiming JobMaker Hiring Credit

The employer must:

  • have an Australian Business Number (ABN)
  • be registered for pay as you go (PAYG) withholding
  • report through Single Touch Payroll (STP)
  • be up-to-date with their tax lodgement obligations
  • claim the credit in respect of an eligible employee
  • have kept adequate records of paid hours worked by the eligible employee
  • show an increase in both their total employee headcount from 30 September 2020 and increase their payroll for the reporting period (7 October 2020 to 6 October 2021) compared to the three months to 6 October 2020.

Additionally, the employer must not be:

  • a Commonwealth, State or Local Government agency or a sovereign entity
  • an entity in liquidation or having entered bankruptcy
  • subject to the major bank levy
  • receiving a wage subsidy under another Commonwealth program (such as JobKeeper) at the same time as claiming a JobMaker Hiring Credit.

What are the key dates?

  • 30 September 2020 - the reference date for comparison of increased employee headcount and payroll (as compared to the previous three months)
  • 7 October 2020 - the date from which credit claims are valid (employees must commence employment after this date)
  • 7 December 2020 - registrations open for eligible employers via ATO online services
  • 6 January 2021 - end of the first reporting period
  • 1 February 2021 - the date from which the first credit can be claimed quarterly in arrears from the ATO, for new jobs created between 7 October 2020 and 6 January 2021
  • 6 October 2021 - the end of the eligibility period for credit claims (employees must commence before this date)

Visit the ATO website for more information about JobMaker Hiring Credit key dates.

Can new employing businesses claim credits?

If a business is newly established or has no employees as at 30 September 2020, they can claim the credit for any new eligible employees hired between 7 October 2020 and 6 October 2021, providing eligibility criteria are met.

How is the claim made?

First, employers must register for the JobMaker Hiring Credit through ATO online services or Online services for business, the ATO business portal or their registered tax or BAS agent.

The second step is to identify, nominate and report eligible additional employees through their STP-enabled software.

The claim can then be made by the employer every three months from 1 February 2021 via ATO online services or Online services for business, the ATO business portal or via a registered tax or BAS agent.

Other information

  • Each period the employer’s employee headcount and payroll must remain higher than they were as at 30 September 2020 for them to remain eligible for the credit.
  • The credit payments can only be received for 12 months for each additional position created.
  • The amount of hiring credit can’t exceed the amount of increase in payroll for the reporting period.

More information on how employers can register for the JobMaker Hiring Credit is available at ato.gov.au/jobmakerhiringcredit.

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