JobMaker in a Nutshell

JobMaker is Federal Government Scheme that commenced on 7 October 2020 designed to encourage the creation of jobs in the post-JobKeeper economy. In essence, the JobMaker scheme is available to employers for each now job created until 6 October 2022 for which the employer hires an eligible employee. If an employer meets the criteria, discussed below, they are able to claim a JobMaker Hiring Credit for that employee equal to the following:

  • $200 per week for an eligible employee hired who is aged between 16 and 29 years of age up to a maximum credit of $10,400; or
  • $100 per week for an eligible employee hired who is between 30 and 35 years of age up to a maximum credit of $5,200.
Which Employers are Eligible?

For an employer to be eligible to receive JobMaker Hiring Credit payments for a particular employee, the employer:

  • Carry on a business in Australia[1];
  • Hold an Australian Business Number (A.B.N);
  • Be up to date with income tax and GST returns for the two years up to the end of the relevant JobMaker period (which are three month periods that commenced on 7 October 2020 and is set to end on 6 October 2022);
  • Be registered for the PAYG Withholding and be reporting through a Single Touch Payroll system (or otherwise hold an exemption);
  • Satisfy the JobMaker reporting requirements proscribed by the ATO; and
  • Meet the additional criteria. These additional criteria are:
    • The employer must demonstrate an increase in the total head count of the business by at least one (1) additional employee; and
    • There must be an increase in the payroll of the business for the relevant reporting period when compared to the three months prior to the hiring of the employee.

If an employer meets these criteria, they are able to make a claim in relation to a JobMaker period.

Who is an Eligible Employee?

Eligible employees are employees who are (or where when they commenced employment with the employer) aged between 16 and 35 years (inclusive) and:

  • are an employee of the employer entity during the relevant JobMaker period;
  • started employment with the employer 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; and
  • 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).

Unfortunately, even if they satisfy the other requirements set out above, an employee will be ineligible for JobMaker if they:

  • Are a business participant, meaning they are a sole traders (as they cannot employ themselves), a partner of a partnership, a trustee or beneficiary of a trust (where the trust is not a widely held unit trusts) or a director or shareholder of a company (again, that are not widely held).
  • Are a close associate, this includes (but is not limited to) relatives such as a spouse, parent and child.
  • Have been previously engaged other than as an employee which includes (but is not limited to) contractors or subcontractors.
  • Started current employment 12 months or more before the start of the JobMaker period.

If you are an employer or an employee and require any assistance navigating the JobMaker scheme, please do not hesitate to contact our Employment Law Team on (02) 4721 6200.

Written by Amelia Hatton.

 

 

[1] Alternatively, the employer needs to be a non-profit body pursuing objectives primarily in Australia; be a deductible gift recipient endorsed either as a public fund or operated under the Overseas Aid Gift Deductibility Scheme or for developed country relief.

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