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The latest instalment of JobStuff™, JobMaker was announced as part of the well delayed and well anticipated Federal Budget back in October 2020.
Registrations are now open for those eligible businesses.
It is important to note here that while you cannot claim JobKeeper and JobMaker simultaneously, this scheme could be convenient for planning your next employee and on the other side of JobKeeper.
REMIND ME AGAIN, WHAT IS THIS ONE?
The JobMaker Hiring Credit is an incentive for eligible businesses to employee additional eligible young (16 to 35-year-old) job seekers.
WHAT'S AN ELIGIBLE BUSINESS?
The usual stuff:
- hold ABN
- up-to-date tax lodgements
- registered for PAYGw
- reporting through STP
The unusual stuff:
- must show an increase in headcount, by number, above the baseline date, 30 September 2020
- must show an increase in payroll, by dollars, above the baseline quarter, this the 92 days ending 6 October 2020
- these dates will be adjusted in the second year of the scheme
For example, if your baseline headcount is five employees on 30 September 2020 and your headcount for the first JobMaker period (6 January 2021) is seven employees, your headcount increase number is two.
If you cannot show an increase over the above dates by the last day of the JobMaker period, you will not be eligible. If an employee stopped one day before the last day of the JobMaker period, they would not be included in the headcount.
The scheme is available to new businesses and those with no current employees. For these, your base headcount and payroll figure is zero.
WHAT'S AN ELIGIBLE EMPLOYEE?
- worked average of 20 hours/week over the period (minimum)
- ages 16 to 35
- receive JobSeeker Payment, Youth Allowance (Other) or Parenting Payment for at least two fortnights out of the six before you hired them
- complete employee notice (ATO form)
Business participants and close associate (including relatives) are ineligible employees; sorry Mum.
While the receipt of JobMaker should be a considering factor in employment, the complexity of means it should not be the prevailing factor. Without careful planning and, to an extent, luck, you could fall in and out of eligibility throughout the scheme.
WHAT DO I GET?
- 16 to 29 year-olds - $200 per week
- 30 to 35 year-olds - $100 per week
- paid three months in arrears for twelve months
The amount of JobMaker you can receive for any JobMaker period is capped at the total increase in payroll over your baseline.
The credit is available for new jobs created between 7 October 2020 and 6 October 2021, for twelve months, up to 6 October 2022.
There are eight JobMaker periods over the two years of the scheme, see key dates below.
As noted above, you cannot claim JobKeeper and JobMaker at the same time. To be specific – not claimed a JobKeeper payment for a fortnight that started during the JobMaker period (quarter). In effect, this means if you are receiving the JobKeeper Extension to 3 January 2021 (JK2.0), you will not be eligible for the first JobMaker period; if for the JobKeeper Extension after 4 January 2021 (JK3.0), not eligible of the second JobMaker period.
In noting the above, you can employ an eligible employee during a period you receive JobKeeper and make a claim for them under JobMaker in the following period, this given your baseline for the first year remains the same.
Based on the previous example, regardless of your increase in headcount, if you receive the JobKeeper Extension until the end of the scheme in March 2021, you will remain ineligible for the first two JobMaker periods. For the third, assuming your seven employees are still around and your payroll has increased, as your headcount over the baseline (30 September 2020) has increased by two, you are eligible.
THINK YOU MIGHT BE ELIGIBLE? WHAT NOW?
If you think you may be eligible, we suggest registering now.
You need to register before making a claim but do not need to register before hiring eligible employees.
You will need to provide your baseline employee headcount on 30 September 2020, and your baseline payroll amount for the quarter ending 6 October 2020.
We note that Xero does have a JobMaker item under Payroll however at the time of writing this blog it is a “coming soon” section, redirecting you for the most part to the specific on the ATO website.
KEY DATES
- 7 October 2020 – scheme starts
- 6 December 2020 – registrations open
- 1 February 2021 – first claim period opens
- 30 April 2021 – first claim period closes
- 6 October 2022 – scheme ends
