JOBMAKER is replacing JOBKEEPER
As JobKeeper winds down, the new program of JobMaker Hiring Credit scheme is ramping up. It’s for a long date range of 2 years: October 2020 to October 2022.
It’s not as generous as JobKeeper, but it will assist businesses with some cash relief as a reward for hiring more employees.
You don’t need to pass the payment on to the employees – the business keeps the cash!
JobMaker is relatively simple, however there are some conditions that need to be noted. Businesses that will or have increased employee numbers from October 2020 onwards may benefit from this scheme. Provided the eligibility criteria are met. The aim of JobKeeper is to get employees back to work. So it’s not actually replacing JobKeeper but it is assisting businesses to recover from the impact of the COVID-19 pandemic.
Due to the impact of COVID-19 on the Australian job market, we anticipate there will be a higher number of potential employees that have been on JobSeeker and other benefits that will now be searching for employment opportunities. Therefore they may meet the JobMaker scheme for your business.
Downloadable factsheets are below for your assistance. Use these to hand to employees and for your reference.
The JobMaker credits can be claimed for employees hired between October 7, 2020, and October 6, 2021, with businesses able to claim up to a total of $10,400 over the 12 month period for each eligible employee aged between 16 and 29, and $5,200 for those aged 30 to 35. The credits will be paid quarterly.
The first payment period will open for claims on February 1, 2021 for those new employees added since 7 October 2020. Hiring Credits can be claimed for the new employees for the first 12 months of employment or until 6 October 2022.
The first step is to register We can assist you and provide the baseline information required to enable registration and also the calculation of claims through the ATO portals.
As an employer, to receive payments you must prove you are creating new employment positions. You do this each JobMaker period by showing an increase in your employee headcount and in employee payroll. The amount you get is based on the number of eligible employees you have hired. The business and the employees must meet certain criteria.
JOBMAKER HIRING CREDIT
- is paid every three months in arrears to employers
- can be claimed from 1 February 2021 for the first JobMaker period (7 October 2020 to 6 January 2021).
- You and your additional employees must meet the eligibility criteria for each JobMaker period you want to claim for.
- You can register at any time until the program closes. You only need to register once. However, you must register before the end of the first JobMaker period you want to claim for.
- Each employee must provide a signed Nomination Notice to the employer. These are available online or from us.
You can register at any time before the end of each claim period. You only need to register once. We suggest you register anyway, then you know it’s done if you hire eligible employees between 7 October 2020 and 6 October 2022. We strongly suggest that every business registers now so the business baseline is registered and enabled until October 2022 – we can do this for you and manage the ongoing claims. Simply contact us
Payroll software will be upgraded to comply with JobMaker and STP requirements. Please follow instructions as they are released from the software companies over the coming weeks. The software will send an allowance code to the ATO to enable registration of the employees and data matching.
- Aged between 16 to 35.
- Works at least 20 hours per week on average.
- Must have been on JobSeeker, Youth Allowance (other), or Parenting Payment for at least 28 days within the last 84 days.
- Must sign and give the employer a Nomination form. From now on, we suggest you give ALL new employees a Nomination Form in case you can claim JobMaker. It also instigates the employee declaring if they have been on eligible benefits so you know if you can claim. Contact us and we will send you a Nomination template.
Reminder: employee information is highly confidential and must be kept in a secure place and requested in an appropriate format.
- More details in attached factsheets.
- Have an ABN
- Registered for PAYG withholding
- Report via Single Touch Payroll STP.
- Up to date with income tax and GST lodgments for the last 2 years.
- Have not claimed a JobKeeper payment for a fortnight that started during the JobMaker period. This point is important – no double dipping.
The payment per new eligible employee is stepped and calculated weekly. Payments are quarterly.
- $200 for ages 16-29
- $100 for ages 30-35
Here is a simple video overview that explains how JobMaker works: https://publish.
*** To get started with JOBMAKER, shoot us an email and we will take care of it for you. Simply contact us
Download the attached factsheets for yourself and employees. Please note, there are more conditions and details in the factsheets so do take the time to browse them.