JobMaker: About the scheme and how to apply

Important note: The JobMaker Hiring Credit scheme is no longer available. This article was for the purpose of providing resources and information to the clients (Australian businesses) of accountants, bookkeepers and outsourced payroll providers.

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The JobMaker Hiring Credit scheme is a Government incentive paid directly to employers that will help to accelerate growth in the employment of young people during the COVID-19 economic recovery. Employers can claim JobMaker Hiring Credit payments to help with the cost of hiring additional employees aged 16 to 35 years employed between 7 October 2020 until 6 October 2021.

The details of the JobMaker Hiring Credit

The hiring credit can be claimed for jobs created between 7 October 2020 until 6 October 2021, but will run for a further year up to October 6 2022 as follows:

The credit provides:

• $200 per week for new employees between 16 to 29 years of age, and
• $100 a week for new employees between 30 to 35 years of age.

Payment is from the start date of the employee for 12 months and eligible employers can commence making a claim from 1 February 2021.

Employer eligibility for JobMaker

In order to access the JobMaker Hiring Credit, an employer must meet the following criteria:

• Has an ABN
• Is up to date with tax lodgements
• Registered for PAYG
• Must be reporting through Single Touch Payroll to nominate employees, update employees’ details and review eligibility, and claim credit payments
• Keep adequate records of the paid hours worked by the employee they are claiming the credit for
• Must  not be claiming JobMaker for the same employee in the same period

See the ATO website for more details.

JobMaker employee eligibility

An employee must meet the following criteria to be deemed eligible for the JobMaker scheme: 

• Started work with the employer between 7 October 2020 and 6 October 2021
• Received the JobSeeker Payment, Youth Allowance (Other) or Parenting Payment for at least one month within the three months before they were hired
• Between 16 and 35 years of age at the time their employment started
• Worked at least 20 hours per week on average for the full weeks employed for the period being claimed. If the employee worked less than 20 hours, the employer cannot claim JobMaker for them during that period
• In the first year of employment with the employer
• The employer is not receiving other forms of assistance from the Commonwealth Government for the employee, for example JobKeeper or an apprenticeship subsidy

See more detail on the ATO website.

KeyPay: Making JobMaker easy

KeyPay cloud payroll is a leading ATO-certified Single Touch Payroll reporting software. With KeyPay, employers can seamlessly assess employee eligibility for JobMaker, easily communicate and track employee notices, and report eligible employees and details through STP.

KeyPay will make the following available for users to streamline accessibility:

JobMaker eligibility report

This report is designed to provide employers with the information to make an informed decision on which employees fit the basic eligibility criteria provided by the government, and the amount claimable that will apply to eligible employees. The report will consider the following criteria to allow users to determine eligibility:

• Start date
• The employee’s age at the time of commencement
• Whether the employee meets the minimum hours test
  

JobMaker employee notices

‍Employers who want to make a claim must first have the eligible employees complete a JobMaker employee notice. Users will be able to send the notice to eligible staff to complete and submit back to the employer directly from KeyPay. KeyPay will then keep a record of the completed notice, nomination status, etc.

Processing JobMaker nominations in the pay run

‍Employers must report JobMaker nominations and periods via STP. As such, a specific JobMaker pay run feature will be provided in KeyPay to allow users to easily report what is required without worrying about ATO specifications to ensure incentives are paid.

Eligible employers who are currently hiring or intending to hire new additional young jobseekers should ensure the right technology is in place to monitor, record, track, report and claim credit entitlements.

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Disclaimer: The information in this article is current as at 6 June 2022, and has been prepared by Webscale Pty Ltd (ABN 70-154-693-955) and its related bodies corporate (KeyPay). The views expressed in this article are general information only, are provided in good faith to assist employers and their employees, and should not be relied on as professional advice. The Information is based on data supplied by third parties. While such data is believed to be accurate, it has not been independently verified and no warranties are given that it is complete, accurate, up to date or fit for the purpose for which it is required. KeyPay does not accept responsibility for any inaccuracy in such data and is not liable for any loss or damages arising either directly or indirectly as a result of reliance on, use of or inability to use any information provided in this article. You should undertake your own research and to seek professional advice before making any decisions or relying on the information in this article.