The JobMaker Hiring Credit will assist to boost the growth in the employment of young people during the Coronavirus recovery. The JobMaker Hiring Credit will provide the businesses incentives to take on additional young job seekers. The JobMaker Hiring Credit is designed in such a manner to assist new hiring credit employment. Employers are not required to satisfy a fall in turnover test.
The JobKeeper Hiring Credit can be availed by employers for creation of every new job over 12 months, for this young person aged between 16 to 35 years old gets hired. It is perceived that around 4, 50,000 positions for young ones living in Australia will get assistance through JobMaker hiring credit bearing the cost of $4 billion from 2020-21 to 2022-23.
The eligible employees will be able to claim from October 7th, 2020, $200 per week for every additional eligible employee they hire from age 16 to 29 year old. Every additional eligible employee will be able to claim $100 every week for an employee of age 30 to 35 year old.
New jobs created till October 6th, 2021, is predicted to attract JobMaker Hiring Credit till 12 months from the date when new position was created.
From February 1st, 2021, the JobMaker Hiring Credit will get claimed quarterly by employer from the Australian Taxation Office (ATO).
Who is eligible for Jobmaker hiring Credit?
The employee must be in an additional job created from October 7th, 2020, to attract the JobMaker Hiring Credit. Certain criteria must be met to demonstrate that the job is additional. According to the criteria, there is an increase in:
• The total employee headcount from the reference date that is September 30th, 2020 in a business.
• For the reporting period, the payroll of the business in comparison to three months to September 30th, 2020.
Eligibility of Employer
To receive the JobMaker Hiring Credit, employers are eligible if:
- They hold an Australian Business Number (ABN)
- They stand up to date with certain tax lodgement obligations
- They are registered for PAYG (Pay As You Go) withholding
- They are reporting with the help of Single Touch Payroll (STP)
- They meet the criteria of additionality
- They are making claims in respect of an eligible employee
- They have sufficient records of paid hours worked by the employee
Current established businesses
The currently established businesses with no employees at the reference date of September 30th, 2020 can claim the JobMaker Hiring Credit if they meet the criteria. The minimum headcount is one. Therefore, employers who had no employee at September 30th, 2020 or were created after this date will not be eligible for first employee hired, but will stand eligible for second and subsequent hires.
For the JobMaker Hiring Credit, the following employers are not eligible:
- State, Local, Commonwealth agencies, and entities who are wholly owned by these agencies
- All Sovereign entities, but Australian resident entities that are owned by a sovereign entity and meet the eligibility criteria stand eligible.
- Some entities in liquidation who are bankrupt
- Employers who claim JobKeeper Payment
- Employers who are subject to the major bank levy
To become eligible, the employee should:
- Of age either 16 to 29 years old, to attract the payment of $200 each week
- Or, 30 to 35 years old, to attract the payment of $100 each week at the time when their employment initiated
- Have worked minimum of 20 paid hours each week on average for full weeks they were employed over a reporting period
- Have started their employment between October 7th, 2020 and October 6th, 2021.
- Have got the JobSeeker Payment, Youth allowance, Parenting Payment for a minimum of a month within last three months before they got hired
- Be in the first year of employment with this employer, reflecting that the hiring credit is available for 12 months for every additional job
- Should be employed for the period that the employer is making claim of
The following employees are not eligible for the JobMaker Hiring Credit:
• At the time of initiation of the employment, employees aged below 16 years or over
• Employees for whom the employer also receives a wage subsidy under another Commonwealth program like Boosting Apprenticeship Commencements wage subsidy, and Australian Apprentice Wage Subsidy Trial
• Employees for whom another employer claims of JobMaker Hiring Credit
• The employees who worked on average less than 20 hours each week, for full weeks they got employed duringthe reporting period.
All you need to know about Jobmaker Hiring Credit
When will the JobMaker Hiring Credit start?
The JobMaker Hiring Credit will start on October 7th, 2020. The eligible employers may get the payment of up to 12 months for new jobs created for which an eligible young person is hired from October 7th, 2020.
When will the JobMaker Hiring Credit stop?
The JobMaker Hiring Credit will gets available for every new job employers created over next 12 months for which they hire an eligible young people. For new entrants, it will close on October 7th, 2021. The eligible employer who hires an eligible employee on October 6th, 2022 could be eligible for 12 months to October 6th, 2022.
How to register for JobMaker Hiring Credit?
For eligible employers registrations will be open through ATO online services from December 7th, 2020. The employers are not required to be registered at the time when they hire an employee to be eligible. Registration may take place at any time before the claim is made.
How and when I can lodge a claim for JobMaker Hiring Credit?
The employers may submit claims from February 1st, 2021. The employers have the time limit of three months to submit the claims following the opening of the claim period.
When will I get the JobMaker Hiring Credit?
The JobMaker Hiring Credit will get paid quarterly. Employers could claim the first payment when open on February 1st, 2021 and for new jobs created between October 7th, 2020 and January 6th, 2021.
Who pays for JobMaker Hiring Credit and who pays for it?
The JobMaker credit is $200 each week, for the eligible employers who hire eligible employees aging between 16 to 29 years at the time of employment. The JobMaker Hiring is $100 each week, for eligible employers who hire eligible employees aging from 30 to 35.
How to calculate the baseline employee headcount and payroll?
For the existing businesses that are operating before September 30th, 2020, the employee headcount is the number of employees that you have at September 30th, 2020 and the payroll is your quarterly payroll for three months to September 30th, 2020.
If you are in a new business and had no employees at September 30th, 2020, you won’t be eligible for the first employee hired; however, will be eligible for second and the subsequent hires.
Does my baseline employee headcount remain same always?
The baseline headcount does not remain the same. During the second year of the program the baseline will increase in line with the access to hiring credits a year earlier. This is to assure that the JobMaker Hiring Credit is available till 12 months from the date of creation of a new job.
Calculation of Payments
Amount of Payments
For the eligible employees who were hired from October 7th, 2020 till October 6th, 2021 for 12 months, eligible employers will be enabled to claim a maximum of:
- $200 each week for each eligible additional employee they hire aging from 16 to 29 years old
- $100 each week for each eligible additional employee aging from 30 to 35 years old
Employees not employed for the whole reporting period
The amount claimed for full reporting period will get calculated on the number of days worked during the reporting period. You will continue to be able to claim for that position for a maximum of 12 months, if an eligible employee leaves your business and gets replaced with another eligible employee.
Can I get the JobMaker Hiring Credit for any of the existing employees?
For employees who were employed on or after October 7th, 2020, you can claim JobMaker Hiring.
Adjustments to the baseline
The baseline is the employee headcount and the quarterly payroll at September 30th, 2020. It will get increased in the reporting period after 12 months from the date you get the hiring credit for an additional job created. This will assure that the payment is available only for 12 months for every additional job created.
Interactions with other Government Programs
Can I get the JobMaker Hiring Credit and JobKeeper Payment at the same time?
You are not liable to get the JobMaker Hiring Credit and JobKeeper Payment at the same time. An employer who receives the JobKeeper Payment could be eligible for the JobMaker Hiring Credit when they have exited the JobKeepr Payment and don’t receive JobKeeper Payment any more. The eligibility for the hiring credit will initiate in the reporting period following the JobKeeper exit date.
Can I get the JobMaker Hiring Credit and other Commonwealth Government wage subsidies for the same employee?
The employers may not access more than one commonwealth wage subsidy program for the same employee. This involves the Department of Education, Skills and Employment’s wage subsidies, the Boosting Apprenticeships; therefore all the employers are eligible.
Eligibility for young people desiring to work
Am I eligible to attract the JobMaker Hiring Credit?
If you are of age 16 to 35 years old and have received the JobSeeker Payment, Youth Allowance or other Parenting Payment for a minimum of last three months at the time you get hired, you will be eligible to attract the JobMaker Hiring Credit. This credit will get paid to your employer.
How much is the JobMaker Hiring Credit and who pays?
For the eligible employers who hire eligible employees aging between 16 to 29 years at the time of employment, the JobMaker Hiring Credit is $200 per week. For the eligible employers who hire the eligible employees aging between 30 to 35 years at the time of employment, the JobMaker Hiring Credit is $100 per week. The ATO will pay the JobMaker Hiring Credit to the employer.
Will the JobMaker Hiring Credit influence my income?
The employers are required to pay employees as per the prevailing industrial relations arrangements. There is no particular link between the income that your employer is required to pay you and the payment that the employer gets through the JobMaker Hiring Credit. To be eligible employee for the JobMAker Hiring Credit, you are required to have worked for at least 20 hours of paid work every week averaged over full weeks worked in the reporting period for which the payment is to be claimed.
Will I be still eligible to get JobMaker Hiring Credit when I turn 36?
You are required to be aged 16 to 35 years old when you get hired by the employer who wants to apply for JobMaker Hiring Credit, to stand eligible. People who are aged 36 years or older during the time of employment are ineligible for JobMaker Hiring Credit.
Eligibility of Employee
I am an eligible employee who has been hired by eligible employer, what I am required to do?
Your employer will ask you to fill out nomination form where you are required to mention that you meet the employee eligibility for the JobMaker Hiring Credit that is at the time of hiring:
- They are aged 16 to 35 years old
- They had been getting jobseeker Payment, Youth Allowance or Parenting Payment for minimum one of three previous months
- They have not filled in a JobMaker Hiring Credit nomination form for another employer who you are still working for.
How much will I get from the JobMaker Hiring Credit?
The ATO will pay the JobMaker Hiring Credit to your employer to subsidize the cost of employing you. You will not get the JobMaker Hiring Credit in own salary, wages or other payment.
The employers are required to pay in as per with the prevailing industrial relations arrangements. There is no particular link between the income that your employer is required to pay and the payment the employer gets through JobMaker Hiring Credit. To get the advantage you are required to have worked for at least 20 hours of paid work each week averaged over full weeks worked in the reporting period for which the payment is being claimed.
How many hours do I require to work get JobMaker Hiring Credit?
You are required to work for a minimum of 20 hours each week on average for full weeks worked in the reporting period for the employer to be able to claim the JobMaker Hiring Credit. The paid hours that includes paid leave, count towards the average hours, but unpaid leave doesn’t count.
What happens if I work less than 20 hours each week on average in a reporting period, but more in the next reporting period?
The employer will not be able to claim the JobMaker Hiring Credit for the reporting period in which you did not work on average 20 hours paid each week but an employer might be able to claim the credit in following reporting period, subject to other eligibility criteria.
I got nominated to get the JobMaker Hiring Credit through one employer. May I get a second job?
Yes, you may have two or more jobs, but you can only complete a nomination for JobMaker Hiring Credit for one employer at a specific time, since two employers cannot receive the hiring credit for you at the same time.
I have recently got one of the eligible income support payments and already have a job and am an eligible employee for the JobMaker Hiring Credit?
Yes, as long as you meet the criteria by being aged from 16 and 35 years old and get the JobSeeker Payment, Youth Allowance or Parenting Payment for a minimum of last three months before you get hired.
You are not required to quit the first job, since you may have more than one job. The efficiency to be an eligible employee for JobMaker Hiring Credit could make you likely to gain additional employment as your employer may claim the hiring credit in respect of employment with them.
Which are the measures that assure the integrity of JobMaker Hiring Credit?
The JobMaker Hiring Credit will get paid by the Australian Taxation Officer (ATO). It will consist of robust integrity features that operate in an identical way to the JobKeeper Payment drawing on the base regulatory and enforcement infrastructure of the tax law.
Employers will be required to satisfy the number of conditions for being qualified as an eligible employer. These conditions will assure that the employers in receipt of JobMaker Hiring Credit carry out authentic business activities in Australia. An eligible employer must get an ABN, be up to date with the tax lodgement obligations, be registered for PAYG withholding and be reporting employee payroll information to the ATO through STP.
The employees are also required to satisfy a number of conditions to help assure they enter into authentic employment relation.