The JobMaker Hiring Credit scheme is now open for registration with the ATO. Here is the JobMaker Hiring Credit guide.

This scheme is an incentive for businesses to hire young job seekers aged 16-35 years old between 7 October 2020 and 6 October 2021.

Eligibility for employers

Employers may be eligible for JobMaker Hiring Credit payments if all the following apply.

The employer:

  • has registered for the JobMaker Hiring Credit scheme
  • either
    • operates a business in Australia
    • is a not-for-profit organisation operating in Australia
    • is a deductible gift recipient (DGR) endorsed either as a public fund or for a public fund you operated under the Overseas Aid Gift Deductibility Scheme (DGR item 9.1.1) or for developed country relief (DGR item 9.1.2)
  • holds an Australian business number (ABN)
  • is registered for pay as you go (PAYG) withholding
  • has not claimed JobKeeper payments for a fortnight that started during the JobMaker period
  • is up to date with income tax and GST returns for the two years up to the end of the JobMaker period for which they are claiming
  • satisfies the payroll increase and the headcount increase conditions
  • satisfies reporting requirements, including up to date Single Touch Payroll (STP) reporting
  • does not belong to one of the ineligible employer categories.

Eligibility for employees

Employees are eligible if they:

  • are an employee of the entity during the JobMaker period
  • are between 16–35 years old (inclusive) when they started employment
  • started employment on or after 7 October 2020 and before 7 October 2021
  • worked or have been paid for an average of at least 20 hours per week they were employed in the JobMaker period
  • have completed a JobMaker Hiring Credit employee notice for the employer
  • have not already provided a JobMaker Hiring Credit employee notice to another current employer
  • received one of the following payments for at least 28 consecutive days (or two fortnights) in the 84 days (or six fortnights) prior to starting employment
    • JobSeeker Payment
    • Parenting Payment
    • Youth Allowance (except if they were receiving the allowance because they were undertaking full-time study or are a new apprentice).

Effect of JobKeeper payments

You cannot receive JobMaker Hiring Credit payments if you also received a JobKeeper payment for a fortnight that started during a JobMaker period.

Employers who received JobKeeper payments and would like to claim for the first JobMaker period, must not claim JobKeeper payments for the JobKeeper fortnight starting on or after 12 October 2020.

Tax consequences

All payments under the JobMaker Hiring Credit scheme are assessable as ordinary income.

JobMaker Hiring Credit payments are:

  • not subject to GST
  • do not need to be included in your activity statements.

For more details, please visit the ATO website.

 


Disclaimer:
Please note that this article is intended to be a general guide only, and should not be seen to constitute legal or tax advice. Where necessary, you should seek a second professional opinion for any legal or tax issues raised in your personal or business tax affairs.

Emma Zhao

Emma Zhao

Chartered Accountant | Registered Tax Agent | SMSF Speacialist™ emma@sencilloaccounts.com.au