COVID-19 measures

JobMaker hiring credit

The JobMaker Hiring Credit scheme (“JobMaker”) is a new government incentive in response to the COVID-19 economic crisis.  Eligible employers can access JobMaker for each eligible additional employee aged 16 to 35 they hire between 7 October 2020 and 6 October 2021.  The program will last for 2 years until 6 October 2022.

 

Are you eligible?

To be eligible or JobMaker, you must:

  • Operate a business in Australia (not-for-profit organisations operating in Australia and certain deductible gift recipients (DGRs) are also eligible);
  • Hold an active ABN;
  • Be registered for PAYG withholding;
  • Satisfy the payroll increase and the headcount increase conditions;
  • Not have claimed JobKeeper payments for a fortnight that started during the JobMaker period;
  • Be up to date with income tax and GST returns for the 2 years up to the end of the JobMaker period for which you are claiming (this requirement is adjusted for new businesses);
  • Be registered with the ATO for the scheme – and
  • Satisfy reporting requirements, including up to date Single Touch Payroll (STP) reporting.

Payroll and headcount conditions

You must employ one or more eligible additional employees, resulting in a genuine increase in both:

  • Your total employee headcount from 30 September 2020 (a different reference point applies for the last 4 JobMaker periods); and
  • Your payroll for the JobMaker period, compared to the 3 months up to 6 October 2020.

An individual is an “eligible additional employee” if they:

  • Were employed by you at any time during the JobMaker period;
  • Commenced employment between 7 October 2020 and 6 October 2021;
  • Were aged between 16 and 35 years at the time they commenced employment;
  • Worked or were paid for an average of 20 hours a week for each whole week they were employed by you during the JobMaker period; and
  • Received certain income support payments, e.g. JobSeeker or Parenting Payment, for at least 28 consecutive days (or 2 fortnights) within the 84 days (or 6 fortnights) before being hired.

Registration and claims

You must register before the end of the first JobMaker period you are claiming for.  For example, if you want to make a claim for the first JobMaker period (7 October 2020 to 6 January 2021), you must register by 30 April 2021.

 

Tax consequences

All JobMaker payments are assessable as ordinary income.  Salary and wages paid to employees that are subsidised by JobMaker continue to be deductible.

JobMaker is:

  • Not subject to GST; and
  • Does not need to be included in your business activity statements (BAS).

Talk to Burns Sieber if you think you may qualify for JobMaker.