Note: this legislation has only just been released on the 4th of December 2020 so interpretation is still fairly new. Every effort has been made for accuracy but should you wish to rely on this information below please seek additional professional support.
Which employers are eligible?
- Note that you will need to be registered with single touch payroll to be eligible – and it appears that a lot of the calculations will be automatic through the ATO systems as a result of this – therefore some of the information below may in fact be superfluous and not required for general knowledge.
- The employer must have had an increase in employee headcount for the Jobmaker period with a resulting increase in payroll monies paid overall. Please scroll down to see how to work out the headcount increase.
- The employer has notified the ATO of their intention to participate in the Jobmaker scheme by the END of the first Jobmaker period the employer intends to claim. Once you elect – the election stays for the duration of the scheme.
- The employer must have an ABN and be carrying on a business.
- Withholding obligations and tax lodgements must be up to date. Note that if you do have outstanding lodgements they can be brought up to date by the end of the Jobmaker period and still qualify.
- They must be registered for PAYG withholding
- The business cannot be under liquidation or subject to the levy imposed by the Major Bank Levy Act 2017 or in a consolidated group that is.
- The employer can also be disqualified if they at or before the end of the Jobmaker period reduce the hours or terminate the employee’s employment for which the Jobmaker payment was being made.
- The employer must have had overall increase in payroll.
- Payroll includes salary sacrifice payments, allowances, commissions and bonuses paid. It does not include termination payments.
- Please scroll down to see how to work out what an increase in payroll means.
Working out if you have a headcount increase for Jobmaker
You first need to work out your initial reference headcount. For the first 5 Jobmaker periods this is the headcount as at 30th September 2020.
You need to compare the headcount at the end of each of these Jobmaker periods to establish that you have in fact increased the headcount.
From Jobmaker periods 5 to 8 you need to do one of the following:
a) compare the headcount from 12 months prior and ensure it has increased OR
b) examine the Jobmaker amount from 4 periods prior (eg: if Jobmaker period 5 you are referencing to Jobmaker 1, Jobmaker 6 – reference is Jobmaker period 2 etc)
i) In order to compare these Jobmaker periods you need also create a reference number of sorts.
ii) For the earlier period you are using as a base reference – you work out how many days make up that period. You then divide the total of employee headcount in that period by this number. You round this to a whole number.
iii) You do the same with the period you are testing. You round this to a whole number.
iv) The new period number needs to be larger than the earlier reference number.
Working out if you have a payroll increase for Jobmaker
This test appears to be simpler than the headcount test.
For any Jobmaker period you intend to test first count how many days are in the Jobmaker period – we will refer to this as ‘m’ number of days.
Tally up the total amount of wage paid as described before in the period you wish to test. This is the ‘new payroll total’
Go to the 6th October 2020 and count back ‘m’ number of days and then total that date range created for ‘m’ number of days ending in 6th October 2020. This is the ‘old payroll total’
Note as ‘m’ will be different for different testing Jobmaker periods this will result in different ‘old payroll totals’.
The ‘new payroll total’ needs to be bigger than the ‘old payroll total’
Which employees are eligible?
- Employees need to be aged between 16 to 35 years old
- Employees are not already getting Jobkeeper payments
- Started employment between 7th October 2020 and 6th October 2021.
- Must be employed for a minimum of 20 hours per week ON AVERAGE.
- Prior to employment the employee must have been on one of the following for 28 consecutive days out of 84 on one of the following:
- parenting payment
- youth allowance
- full time study or was a new apprentice
- Jobseeker payment
- It is interesting to note that the waiting period for getting onto Jobseeker can be included as part of the 28 days.
- The employee must provide written notice to the employer explaining HOW they meet the jobmaker terms of eligibility. This must be presented using this form:
- The employee cannot have provided a letter as above to another employer to whom they are already engaged and working for.
- The employee cannot be a relative of the owner/shareholder/director/trustee/beneficiary of the employer. This includes parents, grandparents, siblings, uncles, aunts, nephews, nieces, partner, spouse or (grand)children. (this list is not definitive so please ask if you are unsure)
- The employee had been engaged by the business in a prior period between 6th April 2020 to 6th October 2020) in a similar role.
- The employee had been engaged by the business within 12 months before the first day of the job maker period in question.