What You Should Know About the JobMaker Hiring Credit Scheme for 16-35 Years Old Job Seekers
The job market saw a wide gap between employers and job seekers in Australia for two primary reasons: the younger workforce often lacks labour market experience. At the same time, corporations often struggle to meet the costs of investing in fresh talent.
The rift proved to be counterproductive for the economy, but the Australian Taxation Office developed a new incentive called JobMaker Hiring Credit Scheme to encourage employers to hire young job hooters under 35-years-old from October 7, 2020, and October 6, 2021.
What Encourages Employers to Hire Younger Workers?
Employers can bolster their business by making the most of the incentives offered, such as the following:
$200 per week for every eligible employee between 16-29 years old;
$100 per week for every eligible employee between 30-35 years old;
Of course, there are criterions employers and potential employees need to meet to become eligible for the JobMaker Hiring Credit Scheme.
What are the Requirements for Employers and Employees?
For employers to leverage this government incentive, you need to fulfil the following:
Register for the JobMaker Hiring Credit scheme;
Must have an operating business in Australia;
Non-profit organisations must be functional in Australia or a deductive gift recipient (DGR), public fund, or operating under the Overseas Aid Gift Deductibility Scheme;
Must have an Australian business number with pay-as-you-go withholding;
Must have accurate and up-to-date income tax returns and similar activity statements;
Must meet the payroll increase and headcount increase standards;
Must meet accounting reporting requirements such as the Single Touch Payroll (STP) reporting, among others;
Meanwhile, job seekers are eligible for the scheme if they meet the following:
Must be 16-35 years of age at the start of their employment;
Must have started their employment between October 7, 2020, to October 7, 2021;
Must have worked or paid for at least 20 hours of work weekly;
Must have a complete JobMaker Hiring Credit employee notice;
Must not have submitted a JobMaker Hiring Credit employee notice to other employers;
Must have at least received JobSeeker payment, Parenting payment, or Youth allowance.
What Does the JobMaker Hiring Credit Scheme Mean for Your Accounting?
The JobMaker Hiring Credit scheme started in 2020, and now that we’re well into March the following year, employers only have six months left to maximise claim payments involving recent younger hires up until October 6, 2021.
Keep in mind that the first claim period closes this coming April 30, 2021, so it’s important to report new hires aged 16-35 years old once you report either your STP or Activity Statement wages to the ATO.
The Bottom Line: Don’t Forget to Report New Employees Between 16 to 35-Years-Old
The pandemic has pushed the economy at a downhill; that’s why the JobMaker Hiring credit provides an excellent subsidy for pandemic-impacted businesses to bolster their productivity, all while reducing the gap in youth unemployment.
Working with professional accountants can take the guesswork out of this new scheme since they can easily ensure your reports align with the ATO’s specifications.
Why Work with New Wave Accounting?
If you’re looking for reliable accounting and bookkeeping services in Mermaid Beach to manage your tax returns and apply money-saving tactics, we’re the best accounting firm to call! Contact us at (07) 55041999 and see how we can help you!