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2020, Business, Corona, News

JobMaker Hiring Credit

Posted on

11th December, 2020

by

eclipseadvisory

JobMaker Hiring Credit: Employer Guide to Eligibility and Payments

The JobMaker hiring credit is a wage subsidy from the Australian Government aimed at helping businesses grow their workforce by hiring young job seekers. If your business is planning to bring on new employees aged between 16 and 35, you may be eligible to receive up to $200 per week per employee through this scheme.

With the economy in recovery, this credit provides a valuable opportunity for businesses to expand their teams and reduce wage costs at the same time. Below, we explain how the scheme works, who qualifies, how to apply, and key things to watch out for.

✅ What Is the JobMaker Hiring Credit?

The JobMaker hiring credit is part of the Federal Government’s economic recovery initiatives. It’s designed to encourage employers to hire young people who have recently been on government support payments.

Under this program, eligible businesses can claim:

  • $200 per week for each new employee aged 16 to 29

  • $100 per week for each new employee aged 30 to 35

These payments are available for up to 12 months per eligible employee and are paid quarterly through the Australian Tax Office (ATO).

The scheme applies to eligible new hires who started employment between 7 October 2020 and 6 October 2022, with claims made over eight quarterly periods. The first claim period ran from 7 October 2020 to 6 January 2021.

✅ Employer Eligibility Criteria

To claim the JobMaker hiring credit, employers must meet the following conditions:

  • Have an Australian Business Number (ABN)

  • Be registered for PAYG withholding

  • Be up to date with income tax and GST lodgements

  • Use Single Touch Payroll (STP) for employee reporting

  • Not be claiming JobKeeper payments at the same time

Additionally, to qualify for each quarter’s claim, your business must demonstrate that:

  • Your employee headcount has increased compared to your baseline (which is the number of employees as at 30 September 2020)

  • Your total payroll has also increased compared to the baseline quarter

This ensures that the scheme supports genuine job creation, not just staff replacement.

✅ Employee Eligibility Criteria

Each employee you claim the credit for must:

  • Have started employment on or after 7 October 2020

  • Be aged between 16 and 35 years at the time of hiring

  • Have received government income support (JobSeeker, Youth Allowance, or Parenting Payment) for at least 4 of the 6 weeks prior to being hired

  • Work an average of at least 20 paid hours per week over the JobMaker quarter

These conditions help ensure the scheme targets young people needing support into employment.

🚫 Employees You Cannot Claim For

Not all hires are eligible under this scheme. You cannot claim JobMaker hiring credits for employees who:

  • Are owners, directors, trustees, shareholders, or relatives of the employer

  • Were engaged in a substantially similar role with your business between 6 April and 6 October 2020

  • Are contractors or subcontractors

  • Have already been nominated under another employer’s JobMaker application

This is to prevent misuse and ensure the credit applies to newly created, arm’s-length roles.

📋 Claiming the JobMaker Credit: Step-by-Step

To access the JobMaker hiring credit, follow these steps:

  1. Register for JobMaker through the ATO online services.

  2. Hire eligible employees and have them complete a JobMaker employee nomination form.

  3. Report your payroll and headcount details via Single Touch Payroll.

  4. After the quarter ends, lodge your claim through the ATO online portal.

It’s important to note that you must meet all reporting requirements before the deadline for each quarter. Late or retrospective participation is not allowed.

📅 Key JobMaker Periods and Deadlines

The scheme covers eight quarterly periods over two years, starting from:

  • 7 October 2020 to 6 January 2021 (first claim paid in February 2021)

  • … through to 7 July 2022 to 6 October 2022 (final eligible hiring period)

You must lodge your STP data and complete the claim submission within the ATO’s window after each quarter ends.

✅ Why the JobMaker Hiring Credit Matters

For growing businesses, the JobMaker hiring credit represents:

  • A cash flow boost at a critical time

  • A chance to support and mentor young Australians

  • An opportunity to scale up hiring without the full wage burden

Even if you’ve already hired new team members, it’s worth checking whether those hires meet the eligibility criteria—and ensuring you’ve reported correctly to the ATO.

📞 Need Help with Eligibility or Claims?

Eclipse Advisory can help you assess your eligibility, review your STP data, and lodge correct claims for the JobMaker hiring credit. We can also advise on how to integrate the scheme into broader hiring, tax planning, or payroll strategies.

📞 Call: 1300 978 077
📧 Email: admin@eclipseadvisory.com.au
📍 Visit us: Erina, NSW (Supporting clients Australia-wide)

Read the pdf here: jobmaker hiring credit 11 dec 2020