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  • Eligible employers

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    Eligible employers

    Employers may be eligible for JobMaker Hiring Credit payments if all of the following apply.

    The employer:

    • has registered for the JobMaker Hiring Credit scheme
    • either  
      • 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 you 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 Single Touch Payroll (STP) reporting
    • does not belong to one of the ineligible employer categories.

    Example – A start-up business that will be eligible for payments under the JobMaker Hiring Credit scheme

    A company (A Co) incorporates on 10 October 2020. It has an active sole director who is paid a nominal annual director fee. The director would not qualify as an eligible additional employee.

    A Co is opening a retail store. On 15 November they hire two additional eligible employees to help set-up the store. The employees will be paid monthly in arrears. 

    A Co:

    • obtains an ABN on 10 December 2020
    • registers for PAYG withholding on 11 December 2020
    • registers for JobMaker on 12 December 2020.

    At the end of the first JobMaker period (6 January 2021), both employees are still employed with A Co. No additional employees have been hired.

    Because A Co only started business on 15 November 2020, their baseline payroll amount will be zero. A Co pays each employee $40,000 per year. A Co’s total payroll expenses for the JobMaker period will be $20,000 ($10,000 for each employee). As the total payroll expenses for the JobMaker period exceeds the baseline payroll amount by $20,000, A Co has had a payroll increase. 

    As A Co is carrying on a business, holds an ABN, has registered for PAYGW and has registered for the JobMaker Hiring Credit scheme it will be eligible for payments under the scheme if it satisfies the other eligibility requirements.

    End of example

    Ineligible employers

    An employer is not entitled to the JobMaker Hiring Credit scheme for a JobMaker period if any of the following apply.

    The employer:

    • had the Major Bank Levy imposed on the entity, or a member of its consolidated group, for any quarter on or before 30 September 2020
    • is an Australian government agency (within the meaning of the Income Tax Assessment Act 1997)
    • 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 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 payments under the JobMaker Hiring Credit scheme
    • is a sovereign entity. The term ‘sovereign entity’ includes a body politic of a foreign country or a foreign 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 (resident subsidiaries were not eligible employers).

    Terminating employment or reducing hours of existing employees

    You will not be eligible, or you will be disqualified, if you enter into an arrangement to artificially inflate your headcount or payroll by terminating or reducing the hours of an existing employee in an attempt to access or increase payments under the JobMaker Hiring Credits scheme.

    An employer who is disqualified in this way loses all entitlements to JobMaker Hiring Credits for:

    • any JobMaker period that ends after the termination or reduction in hours occurred
    • any subsequent periods.

    Generally, this rule would not apply to a termination or reduction in hours that the employee has volunteered for to meet their needs or preferences. However, the employer could be in scope for disqualification if the employee was manipulated or coerced into agreeing to the changes.

    In addition to losing access to JobMaker Hiring Credit payments, employers should consider their obligations under the Age Discrimination Act 2004 and the Fair Work Act 2009.

    See also:

    Effect of other government payments

    You cannot receive JobMaker Hiring Credits if you also receive a JobKeeper payment for a fortnight which started during the JobMaker period.

    Employers who are receiving JobKeeper payments and would like to claim for the first JobMaker period, must not claim JobKeeper payments for the JobKeeper fortnight starting on or after 12 October 2020.

    You may currently be claiming other Australian Government wage subsidies such as the:

    • Supporting Apprentices and Trainees Wage subsidy
    • Australian Apprentice Wage subsidy
    • Boosting the Apprenticeship Commencements Wage subsidy
    • Restart, Youth Bonus, Youth, Parents or Long-term Unemployed Wage Subsidies.

    If you claim JobMaker Hiring Credits, you cannot also receive these other wage subsidies for an employee. More information is available at www.dese.gov.au/employment/financial-incentives-employersExternal Link.

    Example – Interaction between JobKeeper and the JobMaker Hiring Credit

    Best Accommodation is a hotel that has been heavily impacted by the COVID-19 pandemic. Things start to improve with increased bookings and demand towards Christmas. Best Accommodation has been receiving JobKeeper payments for its staff since April 2020. They have qualified for the first quarter of the JobKeeper extension (for fortnights commencing on or 28 September 2020).

    Best Accommodation have lost some staff over the year, with some moving closer to family, others starting alternate employment and some returning to study. Based on the bookings they are receiving they need 5 additional staff members before the start of the Christmas period. The employees start on the 14 November 2020.

    The additional staff members work part-time and have received income support payments. Two have received the JobSeeker payment, two received Youth Allowance (other) and one received the Parenting payment. The employees are eligible employees for the JobMaker Hiring Credit scheme.

    Best Accommodation cannot claim the JobMaker Hiring Credit for the 5 new staff until the staff stop receiving the JobKeeper payment and the next JobMaker period starts. This is because employers must not claim for a JobKeeper fortnight which starts in a JobMaker period. However, it is acceptable if the last JobKeeper fortnight for which they claim ends in a JobMaker period.

    Best Accommodation can only receive JobMaker Hiring Credits for the 5 new employees when they stop receiving JobKeeper payments. The new employees will count towards Best Accommodation's JobMaker headcount.

    End of example

    Registration and lodgment requirements

    To receive JobMaker Hiring Credits, you must:

    If you are not required to register for GST, you are not required to do so to be eligible for JobMaker Hiring Credits.

    See also:

    Lodge before making a claim

    You must meet your lodgment obligations for the two years up to the end of the JobMaker period for which you are claiming. If you are not up to date by the time you make a claim, your claim will be denied.

    For example, if you have a tax return due on 30 December 2020 (before the end of the first JobMaker period) you must lodge this return before you claim for the first JobMaker period.

    Make sure that you deal with your tax obligations early. If you submit lodgments or information close to the time you make a claim, your lodgments may still be processing when you claim. This means your payment will be delayed for up to 28 days. We cannot process claims and payment until we verify your lodgment obligations have been met.

    Keep up to date with lodgments

    You must keep up to date with your lodgments to keep receiving payments.

    If you have lodged late in the past, you may still be eligible for payments provided they are lodged by the time you submit your claim.

    You do not have to pay us amounts you owe for your tax return or BAS before claiming the payment. However, if you fail to meet your payment obligations you may be charged interest. You should engage with us early so we can help you manage your debt.

    See also:

    Lodgments for new businesses

    If you are a new business, only returns that you are required to lodge will be used to determine if you are up to date. These will be returns due within the two years ending on the last day of the JobMaker period you are claiming for. You will need to remain up to date with your lodgments throughout the scheme to stay eligible.

    Check outstanding lodgments

    You can use ATO online services or the Business Portal to check you don't have any outstanding lodgments before you claim.

    If you don't meet your lodgment obligations by the end of the relevant claim period, any payments you may have been entitled to will expire. You will not be able to make another claim for these amounts.

    Example – Up to date with recent lodgments but not with past lodgments

    ABC Pty Ltd has satisfied all lodgment obligations that arose in the two years before 6 January 2021. However, it has not lodged its GST return for the December quarter in 2015.

    ABC Pty Ltd will still be eligible to make a claim for a JobMaker Hiring Credit payment for the first JobMaker period as it is up to date with its lodgments in the last two years.

    However, ABC Pty Ltd should also lodge its GST return for the December quarter in 2015 to avoid interest charges and lodgment penalties.

    End of example

     

    Example – New business with no lodgments due

    Cliff’s Cinemas is a new business that started on 6 December 2020. They register for an ABN on the same day.

    They hire three employees in December, including two eligible employees. They then:

    • register for PAYG withholding
    • enrol in STP reporting
    • begin reporting wage payments through STP.

    Cliff’s Cinemas report quarterly for GST and have no tax lodgments due at the end of the first JobMaker period (6 January 2021).

    To remain eligible for future JobMaker Hiring Credit payments, Cliff’s Cinemas will need to keep up to date with ongoing lodgments.

    End of example

    Income tax returns

    To keep up to date with your obligations you must lodge all tax returns due within the last two years up to the end of the JobMaker period for which you are claiming.

    Tax return due dates can vary depending on:

    • your entity type
    • how you lodge.

    See Income tax for information on when your return is due.

    GST returns

    To keep up to date with your obligations, you must lodge all business activity statements (BAS) and any other GST returns (such as an annual GST return) due within the last two years up to the end of the JobMaker period for which you are claiming. However, if you are not registered for GST, you do not need to register and lodge GST returns to be eligible for JobMaker Hiring Credits.

    The due date for lodging is displayed on your BAS. Your due date will depend on whether your reporting cycle is monthly, quarterly or annual. If the due date is on a weekend or public holiday, you have until the next business day to lodge and pay.

    See also:

    Lodgment deferrals

    Lodgment deferrals extend the due date for lodgment of a document. You will be up to date if:

    • you have a lodgment deferral in place for your income tax or GST returns
    • the deferred due date is after the last day of the JobMaker period.

    If your deferral due date has passed and you have not lodged before you make a claim, you will not receive JobMaker Hiring Credits.

    Reporting obligations

    Once you are registered for the scheme, you must meet ongoing reporting obligations to be eligible to make a claim and remain eligible. This includes:

    • reporting certain information through STP
    • completing a claim form for each JobMaker period you are eligible for.

    Reporting in STP

    Certain employee information must be reported through STP. You will not be able to claim JobMaker Hiring Credit payments until your STP reporting is up to date.

    Your STP reporting is due three days before the end of the JobMaker claim period you make a claim for. For example, to make a claim for JobMaker period 1 (7 October 2020 to 6 January 2021), your STP reporting should be up to date by 27 April 2021, three days before the end of the claim period on 30 April 2021. This will enable the relevant information to be pre-filled in the claim form. To check due dates for each JobMaker period, see Key dates.

    You must report the following information in STP for each employee you intend to claim for:

    • tax file number (TFN)
    • date of birth
    • full name
    • start date of employee (if occurring in the JobMaker period)
    • end date of employee (if occurring in the JobMaker period)
    • whether your employee met the hours requirement.

    There are a number of ways to report information to us through STP. If you are not currently reporting through STP, see Transitioning to STP. There is also information on how to report.

    If you are exempt from STP reporting, you will need to tell us this information.

    Reporting through ATO online services or the Business Portal

    For each claim period, you must also complete your claim through ATO online services or the Business Portal. You need to report:

    • your baseline payroll amount – this amount may be different to the amount provided in the registration form if the number of days in the period is different. If so, you will need to submit an updated baseline payroll amount
    • your total payroll amount for the JobMaker period
    • your headcount at the end of the JobMaker period.

    Information about the employees you intend to claim for will be populated from your STP report.

    You will need to confirm that the information in the claim form is true and correct.

    You must make a claim within the claim period after each JobMaker period ends. If you do not claim within this time, any payment you may have been entitled to will expire. You will not be able to make another claim for these amounts.

    See also:

    Tax consequences

    All payments under the JobMaker Hiring Credit scheme are assessable as ordinary income.

    The normal deductions apply for amounts your business pays to employees if those amounts are subsidised by JobMaker Hiring Credits.

    JobMaker Hiring Credits are:

    • not subject to GST
    • do not need to be included in your business activity statements (BAS).

    Operating on an accruals basis

    For businesses operating on an accruals accounting basis, JobMaker Hiring Credits will be derived when the entity provides us with a valid claim form after each JobMaker period. The claim triggers the entity's legal entitlement to the payments.

    Operating on a cash basis

    For business entities that operate on a cash accounting basis, JobMaker Hiring Credits are derived when the entity receives those payments.

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    Last modified: 14 Jan 2021QC 64261