Registrations are now open for the Federal Government’s JobMaker Hiring Credit scheme (JobMaker), an incentive for Australian businesses to employ job seekers aged between 16–35 years. Eligible employers can access JobMaker for each eligible additional employee they hire between 7 October 2020 and 6 October 2021.
The JobMaker Hiring Credit legislative framework is contained in:
- the Economic Recovery Package (JobMaker Hiring Credit) Amendment Act 2020 (the Act);
- the Treasurer’s legislative instrument, the Coronavirus Economic Response Package (Payments and Benefits) Amendment Rules (No. 9) 2020 (JM Rules); and
- the Commissioner’s legislative instrument, the JobMaker Hiring Credit Reporting Obligations Instrument 2020 (Reporting Rules).
It’s crucial that tax practitioners understand the requirements of applying for JobMaker and the benefits their clients may be entitled to under the scheme.
To assist The Tax Institute’s members in quickly and correctly understanding JobMaker, I have developed the below article in cooperation with the ATO. It breaks down the need-to-know facts of JobMaker, and provides a useful example so you can see at a glance how the scheme applies in practice.
The article sets out:
- the key points of the new JobMaker Hiring Credit payment program;
- JobMaker payment rates;
- a schedule of JobMaker periods, and registration and claim deadlines;
- the eligibility conditions for qualifying entities and eligible additional employees;
- how to calculate the JobMaker Hiring Credit entitlement;
- a worked example; and
- links to technical references and further information.
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