Employers may be able to benefit from a new Federal Government initiative to employ additional young job seekers. Eligible employers will receive payments from the ATO to help subsidise the cost of employing eligible employees for up to 12 months. This was announced on 6 October 2020 during the 2020-21 Federal Budget.
How Much are Employers Entitled to?
Employers will receive payments of up to:
– $200 a week (for each eligible employee between 16 to 29 years old)
– $100 a week (for each eligible employee between 30 to 35 years old).
The age is based on their age on employment commencement date.
How Will it Work?
Employers will need to register for the JobMaker hiring credit scheme with the ATO and nominate the eligible employees. Registration opened on 6 December 2020.
Employers will need to lodge a claim with the ATO every 3 months (starting from 1 Feb 2021) to receive their JobMaker hiring credit. The ATO will pay the JobMaker hiring credit quarterly in arrears.
The first JobMaker period is for 6 October 2020 to 6 January 2021. The final JobMaker period is 7 July 2022 to 6 October 2022.
Employers will need to satisfy a number of eligibility criteria to access the scheme:
– Operate a business in Australia;
– Not for profit organisations and deductible gift recipients may also be eligible;
– Have an Australian Business Number (ABN);
– Registered for PAYG withholding tax;
– Registered for and reporting payroll data through Single Touch Payroll;
– Up to date with income tax and GST lodgement obligations for the last 2 years; and
– Show an increase in number of employees from 30 September 2020; and
– Show an increase in payroll costs during the JobMaker claim period in comparison to the 3 months up to 6 October 2020.
Employees are eligible if their employment satisfies a number of criteria:
– Commenced employment between 7 October 2020 and 6 October 2021;
– Hired on a permanent, casual or fixed term basis;
– Worked or paid for at least 20 hours per week (this can be calculated as an average over the JobMaker period); and
– Provide employers with a written notice declaring they satisfy the eligibility criteria.
Employees will also need to satisfy the below pre-employment criteria for the JobMaker hiring credit scheme:
– Aged between 16 and 35 years old (inclusive) when they started employment;
– Received certain income support payments (including JobSeeker, Youth Allowance or Parenting Payment) for at least 28 consecutive days within the 84 days prior to commencing employment.
The legislation has been released in draft form and has yet to be passed by the Federal Government. The above is based on the information currently available. We will keep you updated as the final legislation and details are released.
Please contact us to find out more about how you could benefit from the JobMaker hiring credit scheme. The team at EMspire Advisory are experienced accountants, bookkeepers and tax agents in Sydney and would like to help you create, grow and succeed in business.
Please note that this information is not specific and is general in nature and cannot be relied upon as advice. Please contact us for specific advice for you and your circumstances.