2020/21 Federal Budget

2020/21 Federal Budget

2. Changes affecting business tax payers

2.2 JobMaker Hiring Credit

2.2.2 Who is an eligible employer?

An employer is able to access the JobMaker Hiring Credit if the employer:

has an ABN;

  • is up to date with tax lodgement obligations;
  • is registered for Pay As You Go withholding;
  • is reporting through Single Touch Payroll;
  • is claiming in respect of an ‘eligible employee’;
  • has kept adequate records of the paid hours worked by the employee they are claiming the hiring credit in respect of; and
  • is able to demonstrate that the credit is claimed in respect of an additional job that has been created.

Broadly, there must be an increase in the business’ total employee headcount and also in the payroll of the business for the reporting period (based on a comparison over a specified reference period).

Employers do not need to satisfy a fall in turnover test to access the JobMaker Hiring Credit.  Certain employers are excluded, including those who are claiming the JobKeeper payment.  New employers created after 30 September 2020 are not eligible for the first employee hired but are (potentially) eligible for the second and subsequent eligible hires.

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