The JobMaker wage subsidy scheme can help your business and the economy. Learn what it is and how to apply here!
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JobMaker – the government’s new wage subsidy scheme – is aimed at rebuilding the economy by encouraging businesses to create new jobs and hire more employees. Additionally, this scheme, centred on providing ‘hiring credit’, will hopefully play a role in curbing the effects of unemployment caused by COVID-19. Specifically, the scheme will see businesses get paid for each new job they create for 16-35 year olds, over a maximum 12 month period.
What payments do I receive under JobMaker?
Eligible employers will be paid for hiring each eligible employee. Rates, however, will differ depending on the age of the employee.
- For employees aged 16 to 29, you will be paid $200p/w.
- For employees aged 30 to 35, you will be paid $100p/w.
Who is eligible for JobMaker?
This payment scheme is for employers. However, there are still some restrictions that apply.
- Registration within the JobMaker Hiring Credit scheme.
- An ABN.
- Registered for pay as you go (PAYG) withholding.
- Up to date tax lodgement obligations.
- Up to date with income tax and GST returns for two years up to the end of the JobMaker period for which they are claiming.
- Reporting through Single Touch Payroll (STP).
- Has not claimed JobKeeper payments for a fortnight that started during the JobMaker period.
- Must also satisfy payroll increase and headcount increase conditions, found here.
- Must not belong to a category of ineligible employers, found here.
For more information, go to the ATO JobMaker website by clicking here.
Requirements for JobMaker
Once satisfying the eligibility requirements above, some other key requirements are:
- You cannot claim jobkeeper, or,
- Any other government subsidy at the same time.
- Aged 16-35, and,
- Worked an average of 20 hours a week during the quarter, and,
- Must have received either:
- A youth allowance, or,
- A parenting plan.
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How to apply for JobMaker
The application is done through the ATO website. However, it is important to be aware of some key dates and factors during the process. These include:
- Registration for the scheme opened on the 6th of December 2020, so register before claim day (from 1st February, 2021).
- You can claim the payment from the 1st of February, 2021.
- Find other key dates here.
- You will NOT need to demonstrate a downturn in income, only the increase in people employed throughout the relevant quarter.
- Employees payroll information must be reported through single touch payroll by the employer to the ATO.
So, what does JobMaker mean for your business?
JobMaker could allow your business to hire more employees, not only rebuilding the economy and providing job opportunities, but also helping get your business back on track. With new jobs and employees your business could enhance growth, make ambitious changes, and achieve new goals! JobMaker could mean starting 2021 right for your business.
For more information, or to clarify any of the information in this article, contact a lawyer here.