More on the JobMaker Subsidy
Updated: Jan 13
COVID-10 has seen the Australian Government announce two important programs, recently announced in the 2020 Federal Budge to support businesses when hiring young job seekers, apprentices & trainees.
Boosting Apprenticeship Commencements
JobMaker Hiring Credit.
A subsidy for hiring apprentices & trainees
Under the new ‘Boosting Apprenticeship Commencements’ subsidies program, businesses of any size that take on a new Australian apprentice or trainee will qualify for a 50% wage subsidy on the wages paid to the apprentice or trainee. But wait.... the business needs to be eligible.
Your business might be eligible if:
your Australian Apprentice / trainee is undertaking a Certificate II or higher qualification. &, has a training contract that is formally approved.
You engage an Australian apprentice between 5th October 2020 and 30 September 2021
Eligible employers will receive a wage subsidy of up to 50% of the Australian Apprentice’s gross wage
The wage subsidy is available for a maximum of $7,000 per quarter ( per eligible Australian Apprentice)
The subsidy is capped at 100,000 places
JobMaker Hiring Credit
The JobMaker Hiring Credit, (Otherwise known as the JobMaker) will be a subsidy paid to businesses to employ additional young workers. The amount of payment will depend on the age of the employee ($100-$200) and will be paid for up to 12 months.
The JobMaker program will be available to employers for each new job they create for eligible employees between 7 October 2020 and 6 October 2021.
Disclaimer : Until the scheme is legislated, it is subject to change.
How much is the JobMaker payment?
Employee is between 16 - 29yrs the JobMaker subsidy will be $200
Employee is between 30 - 35yrs the JobMaker Subsidy will be $100
New jobs created until 6th October 2021 will be eligible for the JobMaker hiring credit for up to 12 months.
Not Everyone is eligible...
To be eligible, the employee has to have received one of the following Government benefits in the previous 3 months before hiring :
Jobseeker, youth allowance or parenting payment
A brief summary of these benefits is as follows:
JobSeeker Payment – Financial help for people between 22 and Age Pension age and looking for work. It’s also for people who are sick or injured and can’t do their usual work or study for a short time.
Youth Allowance (Other) – A means tested payment for young people 16-21 years of age, who are looking for full-time work or undertaking approved activities
Parenting Payment – The main income support payment for people who are a young child’s main carer. This payment is also for job seekers who are the main carers of young children.
What makes the employer eligible?
Unlike the JobKeeper scheme, there is not a decline in turnover test to satisfy.
However, to meet eligibility the business must:
have an Australian Business Number (ABN);
be up to date with tax lodgement obligations;
be registered for Pay As You Go (PAYG) withholding;
be reporting through Single Touch Payroll (STP);
have kept adequate records of the paid hours worked by the employee they are claiming the hiring credit in respect of.
Be able to show an increase in total employee headcount and additional payroll costs equal to or more than the Jobmaker credit.
When is a business NOT eligible for JobMaker?
Employers who are claiming JobKeeper
Commonwealth, state and local government agencies, and entities wholly owned by these agencies;
Sovereign entities (foreign Governments, their agencies and wholly-owned foreign resident subsidiaries)
Entities in liquidation or who have entered bankruptcy;
Employers subject to the major bank levy.
An employer receiving the JobKeeper Payment can be eligible for the JobMaker Hiring Credit once they have exited the JobKeeper Payment and are no longer receiving the JobKeeper
Newly established businesses and businesses with no employees at the reference date of 30 September 2020 are able to claim the JobMaker Hiring Credit where they meet the criteria.
Employees must have worked at least 20 paid hours per week on average for the full weeks they were employed over the quarterly reporting period;
How do I claim the JobMaker as an employer?
Registrations will open for eligible employers through ATO online services from 7 December 2020.
Employers can submit claims from 1 February 2021 (for new jobs created in the first reporting period of 7 October 2020 to 6 January 2021). Employers will have three months to submit claims following the opening of the claim period.
Remember that employers will need to get employees to fill out a JobMaker nomination form where the employee declares that they meet the employee eligibility.
If you are looking for more information, or need some help with your bookkeeping or Accounting needs, please get in touch.
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