Businesses have been hit hard, feeling the impacts of Covid-19 across many industries. The hardest hit have been the hospitality, travel, tourism, creative arts, entertainment, sports and recreation industries. Many businesses across the Camden, Narellan, Picton, Macarthur and Wollondilly areas have been forced to close their doors as restrictions were put in place. Although the introduction of JobKeeper has allowed many businesses effected by the pandemic to be supported through this time enabling continued employment of eligible staff receiving the JobKeeper payment.
The JobKeeper extension is now in place and will see eligible businesses impacted supported through to 28 March 2021. See below link for further information on the JobKeeper Extension.
JobMaker Hiring Credit
The next phase of government assistance for businesses was announced on 6 October 2020 as part of the 2020-21 budget as JobMaker Hiring Credit. Job losses have been extensive during the COVID-19 pandemic and JobMaker Hiring Credit will give businesses incentives to take on additional employees aged between 16 and 35 years old. This will be administered by the ATO.
Key facts relating to the initiative below:
Eligible employers will have access to a JobMaker Hiring Credit for each new job they create over the 12 months from 7 October 2020, for which they hire an eligible employee, for a maximum claim period of 12 months from their employment start date.
Employers will register with the ATO and make claims quarterly, with claims commencing in February 2021.
This measure is subject to the passage of legislation.
The JobMaker Hiring Credit will be:
- $200 per week for each eligible employee aged 16 to 29
- $100 per week for each eligible employee aged 30 to 35.
An employer cannot claim JobKeeper and JobMaker Hiring Credit at the same time.
To be eligible, employers must:
- hold an Australian Business number (ABN)
- be up-to-date with their tax lodgement obligations
- be registered for Pay As You Go (PAYG) withholding
- be reporting through Single touch payroll (STP).
Eligible employees must have worked an average of at least 20 hours per week over the quarter for the employer to qualify for the payment. Employees that start and/or stop employment during a quarter must meet a similar test based on the length of time in employment.
For the employer to be eligible, new employees must:
- be aged 16 to 35 years
- be in receipt of income support payments (such as JobSeeker Payment, Youth Allowance (Other), or Parenting Payment) for at least one of the three months before they were hired.
Further eligibility conditions will apply to employers based on the employer’s headcount and payroll on 30 September 2020. These conditions ensure that employers claim credits for additional jobs created rather than for replacing existing employees.
The ATO will provide further information on eligibility criteria and how employers can register for the JobMaker Hiring Credit as it becomes available.
We know that navigating eligibility criteria can at times be confusing. We recommend working with a qualified Accountant to ensure your business meets requirements. Pinnacle Tax & Accounting in Camden services Narellan, Picton, Wollondilly, Macarthur, Smeaton Grange, Oran Park, Gregory Hills areas. We welcome the opportunity to chat with you further on your businesses accounting and taxation requirements.