JobMaker Hiring Credit

What is JobMaker?

JobMaker is a credit available to eligible entities 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 entity and employee remains eligible (see JobMaker Eligibility).

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 entities and the entity 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 entity including some relatives of the entity』s owners (see Who is not eligible for JobMaker?).

To access JobMaker payments, you will need to:

• Determine if the entity is eligible to receive JobMaker payments (see JobMaker Eligibility)
• Determine which, if any, employees are eligible (see JobMaker Eligibility) and whether the higher or lower rate applies to them
• Ensure the entity 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 (see JobMaker Eligibility and Calculating baseline headcount and payroll)
• Ensure eligible employees complete the JobMaker employee notice (see The JobMaker employee notification)
• Enrol for JobMaker with the ATO (see How to register for JobMaker)
• Establish the baseline payroll and headcount for the entity (see Calculating baseline headcount and payroll)
• Calculate the increase in headcount and payroll for the JobMaker claim (see Calculating the JobMaker claim)
• Ensure the claim is lodged by the end of the claim period (see Key JobMaker dates)

JobMaker Eligibility

There are three eligibility tests for JobMaker:

Employer eligibility:

At the time of enrolment, the entity must:

• Have an ABN
• Carry on a business in Australia, or is a non-profit that pursues its objectives mainly in Australia, or a DGR that meets certain conditions
• Be registered for PAYG withholding

At the time a JobMaker claim is submitted for a period, the entity must:

• Be an eligible employer
• Be up to date with certain tax lodgements (tax returns, GST returns)
• Have at least one additional employee*
• Have increased headcount*
• Have increased payroll*
• Not be receiving other forms of assistance from the Commonwealth Government for the employee, for example JobKeeper or an apprenticeship subsidy***

And:

• Elect to participate in the JobMaker scheme**
• Report through single touch payroll (there are some limited exceptions)
• Submit a claim to the ATO for the JobMaker period
• Keep adequate records (hours worked by the employee the employer is claiming for)
• Another employer is not claiming JobMaker for the same employee

Employee eligibility:

The employee must:

• Have received the JobSeeker Payment, Youth Allowance (Other) or Parenting Payment for at least 28 consecutive days (or 2 fortnights) in the 84 days (or 6 fortnights) prior to starting employment
• Be at least 16 years old and less than 36 years of age at the time their employment started
• Started work between 7 October 2020 and 6 October 2021 (inclusive)
• Worked or been paid for at least 20 hours per week on average⁺ for the full weeks employed for the period being claimed
• Not be an excluded employee***

『Additionality』 test:

To access the JobMaker payment, an employer must demonstrate:

• Total employee headcount on the last day of the reporting period increased by at least one additional employee compared to baseline headcount^+.
• Total payroll for the reporting period increased compared to baseline payroll⁺.

How to register for JobMaker

Entities will need to elect to participate in the JobMaker scheme with the ATO. This election can be made at any time before the end of the JobMaker claim period the entity wants to claim payments for. For the first JobMaker period (7 October 2020 to 6 January 2021), the claim period ends on 30 April 2021, which means that if the entity wants to claim JobMaker for this period it needs to register with the ATO by 30 April 2021. 

The entity only needs to register once for JobMaker. This can be done through: 

• ATO online services through myGov;
• The Business portal using myGovID; or
• Using a registered tax or BAS agent.

When the entity registers, they will need to provide: 

• Headcount at 30 September 2020 (see Calculating baseline headcount and payroll below);
• Payroll for the 3 months up to and including 6 October 2020; and
• Contact details.

Each of the eligible employees must give you written notice in the approved form (the JobMaker employee notification) confirming that: 

• The age condition was met;
• They met the social security payments condition; and
• They have not provided a notice to another entity of which they are currently an employee, unless that notice has ceased to have effect. A notice ceases to have effect as soon as the relevant employment arrangement ceases.

The JobMaker employee notification

Employers will need to give employees the pro-forma ATO JobMaker employee notice or create their own as long as all of the relevant information is included. Once complete, the form is held on file (it does not need to be lodged with the ATO).

如果需要以上兩個文件，編輯文字「jobmaker employee notification」發郵件至:bd@fortunenote.com.au

Each employee will need to be added to Single Touch Payroll three days prior to the end of the relevant JobMaker claim period.

Key JobMaker dates