As the end of JobKeeper draws near with the end of March looming, many businesses are looking at the available options to help soften the blow of the ongoing impacts of the new COVID norm and get their companies back on track by hiring more staff.
Fortunately, some relief beyond JobKeeper will be available with the government’s JobMaker program – a new, but temporary, incentive that will completely replace the JobKeeper subsidy by the end of this month.
What is the JobMaker program?
JobMaker has been designed to assist eligible Australian businesses with hiring staff while helping people who are currently on welfare payments to find employment, many of whom lost their jobs due to the pandemic or have been unable to find one since.
Who is eligible for JobMaker?
Most Australian businesses who are seeking to add staff to their workforce are eligible, but it’s only available to employees under the age of 35 receiving financial assistance from Centrelink.
Employees must work a minimum of 20 hours per week (averaged over the quarter) and have been hired after October 7, 2020 and before October 6, 2021.
For those businesses and employees who are eligible, they will be able to receive the benefit while increasing their workforce, making it a great win-win program.
How long will this JobMaker policy last?
The JobMaker policy began in October 2020 and can be applied for up until October this year in 2021. However, it is important to note that eligible employees and businesses can only claim the subsidy for a maximum of 12 months, so be sure to apply before October this year if you wish to continue receiving the benefit for the maximum period, as it will end on 6th October 2022.
How do I get JobMaker hiring credits?
You can only apply for the scheme once you have hired your new staff member. You can then register with the ATO and make sure that you and your new employee meet all the eligibility requirements.
To check your eligibility or to register for the JobMaker hiring credit scheme, head to Register for JobMaker Hiring Credit | Australian Taxation Office (ato.gov.au) or, if you’d like to ensure that you meet all of these requirements (as they are numerous and the devil is in the detail), contact our team.
How much are the JobMaker payments?
The JobMaker Program offers a subsidy of up to $200 a week with a total value of $10,000. Through the JobMaker Hiring Credit scheme, eligible employers may receive payments of up to:
$200 per week for each eligible additional employee aged 16–29 years old inclusive.
$100 per week for each eligible additional employee aged 30–35 years old inclusive.
Why employers should carefully consider their JobMaker hire
One final point worth mentioning regarding JobMaker is that it isn’t worth making a bad hiring decision just because you are going to get some free government money. A bad hire will cost you a lot more in the long run than the government funds that you are able to get for them.
There is a saying: ‘hire slow, fire fast.’ The point of this saying is that you are better off taking your time to find the right employee, and if they aren’t the right employee, then you should get rid of them quickly! This applies here as well. Don’t let free government money get in the way of better business management and judgement.
If you’d like to discuss JobMaker or explore available government subsidies, contact PCR Accounting and Advisory today on 03 9847 7516 and consult our expert team.
Owner of PCR Accounting & Advisory, Peter Marmara-Stewart is a top-tier accountant and financial advisor dedicated to helping clients reach their business goals and achieve financial freedom. Peter is highly regarded for his client-focused approach and entrepreneurial spirit, catering to a diverse range of professionals across a wide scope of industries all across the country. Peter’s expertise can help you plan effectively, set goals, maximise profits and protect your assets. Get in touch today on (03) 9847 7516.