The ATO’s Deputy Commissioner, James O’Halloran, is urging employers to contact their tax or BAS agents, or visit the ATO’s website, if they need advice on applying for the government’s JobMaker Hiring Credit, introduced at the end of last year.
Under the initiative, which has a cut-off date of October 6 this year, if an employer increases both their headcount and payroll they can receive up to $10,400 for each new job they fill with an eligible employee aged 16 to 29 years, and $5,200 for each eligible employee aged 30 to 35 years.
Mr O’Halloran said that employers do not need to satisfy a turnover test for their business.
“The first step for a business is to register. From here, the second step is to nominate their new employees and the third is to make a claim,” he said.
To be eligible, new employees must:
• be 16 to 35 years old
• commence employment between 7 October 2020 and 6 October 2021
• work or be paid for an average of at least 20 paid hours per week during the reporting period, and
• have received the JobSeeker Payment, Parenting Payment or Youth Allowance (except if they are receiving the allowance because they are undertaking full-time study or are a new apprentice) for at least 28 consecutive days (or two fortnights) in the 84 days (or six fortnights) prior to starting employment.
The scheme has drawn criticism from some quarters, with claims that employers could use the credit to sack older, more expensive employees and replace them with several younger and cheaper part-time employees and still come out ahead financially.
More information about the scheme is available at www.ato.gov.au/jobmakerhiringcredit.