Jobmaker Explained

First Jobkeeper and Jobseeker and now we have Jobmaker.

Yet another complex and hard to understand government initiative to get us all through COVID and it’s aftermath, in one piece. Not that you can complain too much. The various Job – etc’s and so forths have done a magnificent job of providing a port for individuals and businesses to seek shelter in until the storm that is the COVID epidemic has passed.

So what is Jobkeeper? The idea is to help employers take on new people, provide new jobs and get the economy kick started by subsiding new employees.

Employers can claim $200 a week for new employees they hire that are aged 16 to 29 years old. Or $100 a week for employees aged 30 to 35 years old. The subsidy lasts for the first year of their employment and the programme ends 6th of October 2021 and has already started. If you meet the criteria, you can put in a claim starting for Period 1. There are eight Jobmaker periods you can claim for.

There is a table of key dates on the ATO website which you can see HERE

The money is paid in arrears and the first Jobmaker period you can claim for is 7 October 2020 to 6 January 2021. You have to make a claim for this period between 1 February 2021 and 30 April 2021.

You can’t get Jobkeeper and Jobmaker at the same time.

You have to have at least one employee to begin with, use STP (Single Touch Payroll) software and be registered for PAYGW (Pay As You Go Withholding). Being the ATO – you also have to have all your lodgments up to date as well.

To make a claim, the employee must have been taken on for a brand new job created within the reporting period. The reporting period being 7 October 2020 to 6 October 2021.

To be eligible – the employee must have been receiving a Jobseeker Payment, Youth Allowance (Other), or Parenting Payment for at least 28 consecutive days within the 84 days prior to the start of employment. They also have to work an average of 20 hours a week or more.

How the ATO knows the employee is new is that they use data from STP (Single Touch Payroll) software. They use the number of employees you had in the three months up to 30 September 2020 as a baseline.

So what’s the process?

Step One: Register for Jobmaker

The easiest way is to get your tax agent to do it for you. Or you can do it via the Business Portal or other ATO online portals.

You only do this once. But you can only make a claim if you have registered by the due date of the period you are claiming for. To quote the ATO website “For example, if you want to make a claim for the first JobMaker period (Period 1 is 7 October 2020 to 6 January 2021) you must register by 30 April 2021”.

Step Two: Nominate your eligible employees

This is similar to Jobkeeper in that you identify the eligible employees via your STP (Single Touch Payroll) software. Your employees have to fill out the “JobMaker employee notice” (to make sure they meet the eligibility requirements).

Step Three: Get the money

You make your claim every three months (Starting 1 February) via your tax agent or the Business Portal or ATO online services. It’s paid in arrears.

You HAVE to make your claim before the end of the claim period. If you don’t – you miss out. You can read more HERE.

Employees and Jobkeeper.

The key point is that the credit is for the employer – not the employees. An employee can’t be claimed for two different employers. The employees do have to fill out the “JobMaker employee notice” (which basically asks questions to make sure they are eligible and can be claimed for).

Remember, they have to start employment with you between 7 October 2020 and 6 October 2020. You can read more HERE.

Also remember that you have to meet the STP reporting obligations. Because this is how the ATO keep track and make sure you are being honest. Basically, do your STP report at least three days before the end of the relevant claim period. You can read more HERE.

Key resources

The central page about Jobmaker is on the ATO website. And let me warn you – it is confusing. But have a look and see what you think. There is a handy calculator on the page to let you estimate how much you will be paid.

Making sense of the confusing “JobMaker claim periods“ table on the ATO website.

JobMaker period: This is the period of time (there will eight of them of three months each) that each periodic payment is based on.

STP reporting due date: You have to have submitted your pay run via STP software by this time so the ATO can see and check your figures.

Claim period: This is the space of time you have to put in your Jobmaker claim so you get the money. If you are late – you won’t get paid.

All in all, I would get Wealthpath Accountants to do this for you. Far too difficult to work out. Give us a call on 1300 268 800 to get some help.