Small businesses now able to claim JobMaker hiring credits

Small businesses can this week begin claiming hiring credits under the federal government’s JobMaker program, with the first quarterly claim period opening on Monday.

A key policy of the 2020 federal budget, the JobMaker hiring credits program offers payments to businesses that increase their headcounts by hiring young workers between October 7, 2020, and October 6, 2021.

The credits are available for additional hires who have previously received government payments, with up to $200 per week available for employees aged 16 to 29, and up to $100 per week available for employees aged between 30 and 35. 

In total, businesses can claim up to $10,400 for additional employees aged 16 to 29, and up to $5,200 for additional employees in the older age bracket.

The first claim period for the program opened on February 1, 2021, and will close on April 30, 2021. 

In an update published on Monday, the Australian Taxation Office (ATO) outlined the steps businesses need to take to receive the payments. 

Eligible businesses must first register for the credits via the ATO’s online services or Business Portal, or via their registered tax or BAS agent. 

Businesses can then make a claim by nominating eligible employees by having employees complete a JobMaker employee notice, running payroll events through their Single Touch Payroll-enabled software, and supplying information about the business’ headcount and payroll for the JobMaker period. 

The ATO will then calculate the claim amount for the business, based on the information provided and the credits are paid quarterly in arrears. 

Employees must complete a minimum of 20 hours of work per week during the JobMaker period to be eligible for the payments. 

Payments can be claimed for up to 12 months for each additional employee hired during the JobMaker eligibility period, with the program to end on October 6, 2022.

Businesses can register at any time until the program ends, but must do so before the end of the claim period for the first JobMaker period they wish to claim for. 

The ATO has also published new resources for employers to check their eligibility for the JobMaker program and calculate how much they will receive.