The latest in the Federal Government’s COVID-19 support measures, the JobMaker Hiring Credit scheme is now open for registration. But one of the first issues to settle, before any “paperwork” is commenced, is to determine which employer is eligible and which is not.
The ATO says to be eligible for JobMaker Hiring Credit payments, all of the following must apply. The employer:
- has registered for the JobMaker Hiring Credit scheme
- operates a business in Australia
- is a not-for-profit organisation operating in Australia
- is a deductible gift recipient (DGR) endorsed either as a public fund or for a public fund operated under the Overseas Aid Gift Deductibility Scheme (DGR item 9.1.1) or for developed country relief (DGR item 9.1.2)
- holds an Australian business number (ABN)
- is registered for pay as you go (PAYG) withholding
- has not claimed JobKeeper payments for a fortnight that started during the JobMaker period
- is up to date with income tax and GST returns for the two years up to the end of the JobMaker period for which they are claiming
- satisfies the payroll increase and the headcount increase conditions
- satisfies reporting requirements, including up-to-date STP reporting.
An employer will not be entitled to JobMaker Hiring Credit scheme payments for a JobMaker period if anyof the following apply. The employer:
- had the major bank levy imposed on it, or a member of its consolidated group, for any quarter on or before 30 September 2020
- is an Australian government agency
- is a local governing body
- is wholly owned by an Australian government agency or a local governing body
- is a company in liquidation or provisional liquidation
- is an individual who has entered bankruptcy
- is disqualified under the integrity measures of the scheme (see section 29 of the legislative instrument) because the entity terminated the employment or reduced the hours of work of an existing employee or employees for the sole or dominant purpose of receiving or increasing JobMaker payments
- is a sovereign entity (the term “sovereign entity” includes a body politic of a foreign country or government agency; resident subsidiaries of a sovereign entity may be eligible employers if the entity satisfies the other eligibility criteria and is not ineligible due to any other exclusion — this is different to JobKeeper where resident subsidiaries were not eligible employers).
Registration and lodgment
To receive JobMaker Hiring Credits, an entity must:
- hold an active Australian business number (ABN)
- be registered for pay as you go (PAYG) withholding
- be up to date with lodging income tax and GST returns for the two years up to the end of the JobMaker period for which the entity is claiming.
If the entity is not required to register for GST, they are not required to do so to be eligible for JobMaker Hiring Credits.
To remain eligible, an entity must meet lodgment obligations for the two years up to the end of the JobMaker period for which they are claiming. If they are not up to date by the time they make a claim, the claim will be denied. To remain eligible, an entity will need to remain up to date with lodgments throughout the period the scheme is in operation.