JOBMAKER EXPLAINED (5 min read)
In our earlier blog post we briefly discussed the Federal Budget announcements, in this post we provide a more detailed overview of JobMaker which passed through parliament yesterday and is now law.
Eligibility:
Eligible employers will have access to a JobMaker Hiring Credit for each new job they create over the 12 months from 7 October 2020, for which they hire an eligible employee, for a maximum claim period of 12 months from their employment start date.
To be eligible, employers must:
hold an Australian Business number (ABN)
be up-to-date with their tax lodgement obligations
be registered for Pay As You Go (PAYG) withholding
be reporting through Single touch payroll (STP)
not currently be claiming JobKeeper
Eligible employees must have worked an average of at least 20 hours per week over the quarter for the employer to qualify for the payment. Employees that start and/or stop employment during a quarter must meet a similar test based on the length of time in employment.
For the employer to be eligible, new employees must:
be aged 16 to 35 years
be in receipt of income support payments (such as JobSeeker Payment, Youth Allowance (Other), or Parenting Payment) for at least one of the three months before they were hired.
How much is the credit:
The JobMaker Hiring Credit will be:
$200 per week for each eligible employee aged 16 to 29
$100 per week for each eligible employee aged 30 to 35
When can you register:
Employers will be able to register for the scheme from December 7, 2020, via the ATO website.
But don't worry, businesses don't need to be registered for the scheme at the time that a new job is created — and again, new jobs are eligible for the scheme from 7 October 2020.
When will you get paid the credit:
Employers will register with the ATO and make claims quarterly, with claims commencing in February 2021.
Other important things to note:
employees for whom the employer is also receiving a wage subsidy under another Commonwealth program such as the Boosting Apprenticeship Commencements wage subsidy, Supporting Apprentices and Trainees subsidy and the Australian Apprentice Wage Subsidy Trial are not eligible
See more info here - https://budget.gov.au/2020-21/content/factsheets/download/jobmaker_hiring_credit_factsheet.pdf
If you have any more questions regarding the above please contact us on 02 9030 0269.
Natalie Lennon
Founder & Director
Two Sides Accounting
02 9030 0269
www.twosides.com.au
@twosidesHQ
natalie@twosides.com.au
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