JobMaker Hiring Credit

The JobMaker Hiring Credit has now been passed as law. The scheme has been created as an incentive for businesses to employ job seekers aged 16-35 years.

The scheme subsidises an increase in the number of employees for the year from 7 October 2020 to 6 October 2021.

To receive payments, an employer must prove an increase in eligible employee headcount in each JobMaker period. The final JobMaker period ends on 6 October 2022 (one year after the final date to employ new people).

The credit is available for a maximum of 12 months from the employment start date, from $100 to $200 per week for eligible employees based on their age.

Registration for the scheme opened on 6 December.

BAS agents can register employers for the scheme via the ATO online services via the business menu, in the same section as JobKeeper is managed.

Eligibility

Once registered, eligible employers can claim the JobMaker Hiring Credit payment for each JobMaker period from 1 February 2021.

There are strict eligibility requirements for employers. The business must register for the scheme, operate a business in Australia with an ABN, must be registered for PAYG withholding and must not claim JobKeeper or other wage subsidies at the same time. The business must also be up to date with all tax and GST returns and satisfy other conditions for making a claim including hours worked by the new employee.

Claims

Once registered and accepted, payroll information must be reported through Single Touch Payroll and a claim form for each period must be completed before any payment of the subsidy can be paid.

Claims must be made by the due date for each period; there will not be any back payment of amounts the business may have been entitled to if the claim is not submitted within the time frame.

Bookkeeping for JobMaker

JobMaker payments are assessable as ordinary income for the business, are not subject to GST and do not need to be included in the activity statement.

For accrual reporting businesses, the credit will be recognised at the date of claim. For cash reporting businesses, the credit will be recognised at the date of receipt of payment.

Create a separate income account in order to allocate JobMaker Hiring Credits.

ATO – JobMaker Hiring Credit
ATO – Eligible employers
ATO – Conditions for making a claim
ATO – Register for JobMaker Hiring Credit
ATO – JobMaker Hiring Credit key dates