The Australian government has introduced a benefit to incentivise businesses who hire young workers before October 6, 2021. The employment stimulus package named JobMaker is available to those businesses who fulfil the eligibility requirements, allowing them to receive weekly payments for hiring staff aged between 16 to 35 years.
To qualify for the JobMaker benefit, both employer and employees will need to meet key requirements. The conditions are not overly complicated, but if you need assistance finding out if your business ticks the boxes, we can help.
The government estimated that the introduction of the JobMaker scheme would mean approximately 450,000 beneficiary recipients would be able to gain employment during a tumultuous time where many people are struggling to secure jobs. The estimated cost of the hiring scheme is said to cost around $AU 4 billion, but the end result would see small business owners being able to get the assistance they need.
In addition to making sure your business meets the eligibility requirements, there are certain conditions that ‘new’ employees must meet before you qualify for JobMaker funding:
- The employee must be aged between 16 and 35 years old at the time of employment
- Each employee must work an average of 20 hours a week for 3 consecutive months
- Must have been receiving a government allowance for more than 4 weeks during the previous 12 weeks prior to commencing employment. Benefits include JobSeeker, youth allowance, or parenting support.
- Must have been employed between 7 October 2020 and 6 October 2021
Unfortunately, people who are not currently receiving government support or are changing jobs, do not meet the JobMaker eligibility requirements. The amounts received depend on the age of the employee. Those who are aged between 16 and 29 years of age will be eligible for a higher weekly payment than those who are 25-31 years of age.
What requirements does my business need to fulfil to receive JobMaker funding?
JobMaker is open to Australian businesses who:
- Already have an ABN and be registered to withhold PAYG
- Use Single Touch Payroll system
- Have tax returns and business activity statements in order and up to date
- Can prove they are creating new job positions. This is done by showing a rise in your employee headcount through your employee payroll. The amount of JobMaker funding you received is based on the number of eligible employees you have hired. This is designed to stop business owners from trying to take advantage of the JobMaker benefits by slashing wages of current staff so they can access the payments.
If you are planning on starting a new business or you are a business owner wanting to give someone the opportunity to join your company, we can help you determine if you meet the requirements and streamline the process of hiring new staff. The criteria may appear complicated, but if you are entitled for JobMaker funding, why not take advantage of it. With our in-depth accountancy knowledge, we’ll be able to help you streamline the entire JobMaker application process.
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