In the 2020–21 Federal Budget, the government announced plans for a new program to give businesses extra incentive to hire new employees. In keeping with the language of JobKeeper and JobSeeker, the new scheme is called JobMaker.
Legislation for JobMaker hasn’t passed into law. Details may change. This is a guide to what we know so far.
For employers
There are a few requirements before an employer can access the program, including having an ABN, being registered for PAYG,being up to date with tax lodgements and using single-touch payroll. Also, the total employee headcount on the last day of the reporting period must have increased by at least one additional employee compared to 30 September 2020 and the previous reporting period..
For employers
For employees to be eligible, they need to have received JobSeeker, Youth Allowance or Parenting Payment for at least one month within the three months before they were hired, be between 16 and 35 years old, have worked at least 20 hours per week on average, and have started work between 7 October 2020 and 6 October 2021.
If your business creates a new job between 7 October 2020 and 6 October 2021, and you fulfil the various requirements, the government will reward you with $200 per week for new employees aged between 16 and 29 and $100 a week for new employees between 30 and 35, for 12 months after the hire. This doesn’t include replacing staff; it must be an increase in total headcount and payroll to qualify.
This link to payroll is important. It means businesses can’t reduce the hours of existing employees and hire new staff in order to collect JobMaker. For those hiring younger employees, the hiring credit adds up to a very useful $10,400 per employee over their first year of their employment.
Not every employee
One quirk in the JobMaker announcement is that is doesn’t apply to a business hiring its first employee. If you’re a single-person operator, there is no incentive here to create a new job. But as long as your business already has at least one employee, every new addition to headcount qualifies for the payment.
A final important detail to note is that if your business has been impacted by COVID-19 and you are paying some of your employees through the JobKeeper scheme, you do not also qualify for JobMaker. To receive any JobMaker credits, your business needs to have exited the JobKeeper program.
As mentioned, JobMaker has yet to be debated in Parliament, so any of these details are subject to change. Contact Philip at PMCA at any stage to find out what the latest news is on this new employment incentive.
The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained. We are here to help, contact us today:
Philip Martin Chartered Accountant
Phone 1300 744 547 | Web pmca.com.au | Email philip@pmca.com.au
Level 9, 440 Collins Street, Melbourne, Vic 3000
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A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!
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The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.
A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!
Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.
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The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.
A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!
Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.
