JobMaker is a credit available to eligible businesses and non-profit entities that create new jobs (not if you are merely replacing someone who left). The hiring credit is available for jobs created from 7 October 2020 until 6 October 2021 and provides:
- $200 per week for new employees between 16 to 29 years of age; and
- $100 per week for new employees between 30 to 35 years of age.
Administered by the ATO, JobMaker is a credit that is paid quarterly in arrears from the start date of the employee for 12 months, assuming the business and employee remains eligible.
The credit is an incentive for the employer to support wage costs and is not passed onto the employee.
Unlike JobKeeper, JobMaker can apply to new businesses and the business does not need to satisfy a decline in turnover test to receive payments.
A series of people are excluded from the JobMaker scheme including employers receiving JobKeeper, employees receiving an apprentice wage subsidy, and close associates of the business including some relatives of the business owners.
To access JobMaker payments, you will need to:
- Determine if the business is eligible to receive JobMaker payments
- Determine which, if any, employees are eligible and whether the higher or lower rate applies to them
- Ensure the business passes the ‘additionality test’. That is, total headcount and payroll have increased, not just that you have employed new employees. You will need to pass this test in every quarter you make a claim.
- Ensure eligible employees complete the JobMaker employee notice
- Enrol for JobMaker with the ATO
- Establish the baseline payroll and headcount for your business
- Calculate the increase in headcount and payroll for your JobMaker claim
- Ensure the claim is lodged by the end of the claim period
Download the full guide here: Femia Accountants JobMaker Guide