JobMaker Hiring Credit

By Cutcher & Neale Accounting and Financial Services - January 20, 2021

The JobMaker Hiring Credit is an incentive for businesses that aims to subsidise the cost of increasing your number of employees.

The JobMaker hiring credit is open to businesses that are hiring additional young staff between 7 October 2020 and 6 October 2021. It relates to new positions filled by persons who received either JobSeeker, Parenting Payment or Youth Allowance payments for at least 28 consecutive days in the 84 days prior to commencing claiming for the employee.

The payment rates (per employee) range up to:
  • $200 per week for 16-29 year olds and
  • $100 per week for 30-35 year olds.

The claim period can run for up to 12 months from their employment commencement.

Claims start 1 February 2021, registration is open now via the ATO.

Claims can be made in relation to employees who work or have been paid for an average of at least 20 hours per week they were employed in the JobMaker period.

Some of the conditions for the employer to be eligible are that:
  • the business needs to register for the JobMaker Hiring Credit scheme
  • hold an ABN,
  • be registered for PAYGW,
  • have not claimed JobKeeper payments for a fortnight within the JobMaker period, be up to date with compliance obligations (tax, GST) for the 2 years up to claim period,
  • be up to date with STP reporting and
  • satisfy the headcount increase conditions.

The headcount condition is a condition to ensure that the new employment positions have been created, using a baseline headcount and a headcount during the JobMaker period.

For further details please contact your C&N advisor or information from the ATO can be found at https://www.ato.gov.au/General/JobMaker-Hiring-Credit/

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