As businesses across Australia start to say goodbye to JobKeeper, the federal government has introduced a new program to encourage businesses to hire new team members with a commitment to spend $4 billion over 3 years on the new JobMaker program.
JobMaker has been designed to encourage Australian businesses to increase their employee headcount by providing a hiring credit for employing people that have been recipients of certain recent government payments, including JobSeeker. The underlying aim of the program is to get Australians back into the workforce.
Just like its predecessors, this new “Job” payment requires both the business and the employee to meet certain eligibility criteria. It is not automatically provided to businesses and eligible employers will need to register to receive payments.
the rules at a glance
is my business eligible?
To be eligible the employer must:
- Be a business, not-for-profit organisation operating in Australia, or endorsed deductible gift recipient (DGR).
- Elect to participate in JobMaker, have an ABN and be registered for PAYG Withholding.
- Prove there is an increase in headcount when compared to the 30 September 2020 head count, and there must be an increase in total payroll costs.
The employer must also:
- Not be subject to the major bank levy, a Commonwealth, state or local government agency, a sovereign entity, in liquidation or have entered bankruptcy; and
- Not be entitled to receive a JobKeeper payment in respect of an individual for a JobKeeper fortnight that begins during the JobMaker period. (There is an overlap rule in some circumstances)
are my employees eligible?
The business must take on one or more additional employees who:
- Commenced employment between 7 October 2020 and 6 October 2021 (inclusive), and no more than 12 months before the start of a JobMaker period;
- Received Parenting Payment, Youth Allowance (Other) or JobSeeker for at least 28 consecutive days during the 84 days before they commenced employment;
- Are aged 16 to 35 years at the time they commenced employment
- Work an average of at least 20 hours per week in each week that they are employed during a JobMaker period.
- Have given the employer JobMaker Hiring Credit Employee Notice and confirm they have not given another entity a notice; (ATO notice can be found here)
- Are not ‘excluded employees’ including business participants, close associates (including relatives)
- Did not work for the employer as a contractor or subcontractor from 6 April 2020 to 6 October 2020 in a similar role
The amount of JobMaker depends on the age of the eligible new employee at the time they commenced employment with the employer:
- If the employee is aged 16 to 29 years — up to $200 per week;
- If the employee is aged 30 to 35 years — up to $100 per week.
Employers will claim JobMaker quarterly in arrears from the ATO
how to register
- An employer must register by 6 January 2021 to be eligible for the first JobMaker period
- If an employer does not wish to register until a later JobMaker period, then they will be required to elect to participate in JobMaker by the end of that later period.
- Employers do not need to be registered at the time that they hire an employee to be eligible.
JobMaker periods are three-month blocks that started on 7 October 2020 and are due to end on 6 October 2022.
|1||7 October 2020 – 6 January 2021|
|2||7 January 2021 – 6 April 2021|
|3||7 April 2021 – 6 July 2021|
|4||7 July 2021 – 6 October 2021|
|5||7 October 2021 – 6 January 2022|
|6||7 January 2022 – 6 April 2022|
|7||7 April 2022 – 6 July 2022|
|8||7 July 2022 – 6 October 2022|
More information about JobMaker can be found here.
If you would like help assessing your eligibility or enrolling for JobMaker do not hesitate to reach out to a businessDEPOT business advisor on 1300BDEPOT or email@example.com.