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  • Your eligible employees

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    Eligible employees

    Employees are eligible if they:

    • are an employee of the entity during the JobMaker period
    • are aged 16–35 years old when they started employment
    • started employment on or after 7 October 2020 and before 7 October 2021
    • worked or have been paid for an average of at least 20 hours per week they were employed in the JobMaker period
    • have completed a JobMaker Hiring Credit employee notice for the employer
    • have not already provided a JobMaker Hiring Credit employee notice to another current employer
    • received one of these payments for at least 28 consecutive days (or 2 fortnights) in the 84 days (or 6 fortnights) prior to starting employment
      • JobSeeker Payment
      • Parenting Payment
      • Youth Allowance (except if they were receiving the allowance because they were undertaking full-time study or are a new apprentice).

    See also:

    Ineligible employees

    These employees are not eligible for the JobMaker scheme even though they may satisfy some of the requirements:

    Business participants

    Individuals who have certain relationships to the employing entity are not eligible employees. The following individuals are not eligible employees of the following employing entities:

    • sole traders (as they cannot employ themselves)
    • partners of a partnership
    • trustees and beneficiaries of trusts (that are not widely held unit trusts)
    • directors or shareholders of companies (that are not widely held).

    Close associates (including relatives)

    Close associates of the business participants are also ineligible employees. If the business participant of the employer is an individual, close associates include the following relatives:

    • the individual's spouse
    • relatives of the individual or their spouse, including  
      • a parent, grandparent, brother, sister, uncle, aunt, nephew, niece, lineal descendent or adopted child, or
      • the spouse of such a parent, grandparent, brother, sister, uncle, aunt, nephew, niece, lineal descendent or adopted child.

    Example – Employee that works for an employer who is a relative

    Jacinta is 27 years old. She started employment for a sole trader on 10 November 2020. She is contracted to work 20 hours per week.

    The sole trader is Jacinta's spouse. As a relative, Jacinta is not an eligible employee for the sole trader.

    End of example

    If the business participants of the employer are not individuals, then the following business participants (who are individuals) and their relatives are also ineligible employees:

    • partners of a partnership
    • trustees and beneficiaries of trusts (that are not widely held unit trusts)
    • directors or shareholders of companies (that are not widely held).

    For example:

    • if a company (that is not widely held) is a partner of a partnership, then the shareholders, directors and their relatives are ineligible employees of the partnership
    • if a trust (that is not widely held) with a corporate trustee is the entity carrying on the business, a person is an ineligible employee of the trust if the individual is a relative of the director of the company that is the corporate trustee

    Widely held companies and unit trusts

    If you are a widely held company or unit trust, these rules do not apply to your employees.

    Widely held companies are companies listed on an approved stock exchange and certain companies with more than 50 members.

    Widely held unit trusts are unit trusts that are not closely held. This includes attribution managed investment trusts.

    See also:

    Table 1: ineligible individuals

    Employer entity

    Ineligible individuals

    Sole trader

    Sole trader

    Close associates of the sole trader

    Partnership

    Partners

    Close associates of the partners

    Company that is not widely held

    Shareholders and directors of the company

    Close associates of the shareholders and directors

    Trust that is not a widely held unit trust

    Trustees or beneficiaries of the trust

    Close associates of the trustees and beneficiaries

    Employee started current employment 12 months or more before the start of the period

    Employees who started their current employment with an entity 12 months or more before the first day of a JobMaker period will not be an eligible employee for that period.

    Employee's age

    To be eligible, employees must be between 16–35 years old (inclusive) when they started employment. Different payment rates apply based on your employees age when they were hired.

    An employee is not eligible if they are:

    • 15 years old or younger when they started employment, but turn 16 years old after starting employment
    • 36 years old or older when they start employment.

    Example – Employee that turns 30 while employed

    Alexandra is an eligible employee who started employment on 20 November 2020 with an eligible employer.

    At the time she started employment, she was 29. On 4 January 2021, Alexandra turns 30.

    Her employer is eligible to claim a payment rate of $200 per week for the entire 12 months because Alexandra is:

    • an eligible employee
    • 29 at the time she started employment.
    End of example

    Pre-employment requirement

    To meet the pre-employment requirement, an employee must have received one of the income support payments listed below before starting employment:

    Your employee must have received income support payments for at least 28 consecutive days (or 2 fortnights) within the 84 days (or 6 fortnights) before starting employment.

    Your employees must let you know whether they have met this requirement in their employee notice form.

    In your employee notice (whether you use the ATO form or create your own), employees must confirm they meet this requirement.

    We will check whether your employees have met this requirement. You may be required to repay any amounts incorrectly claimed that we identify.

    Receiving income support

    An employee is still considered to be receiving income support payments for the days when they are on a nil payment rate. The nil payment rate could be due to a:

    A nil rate period may occur if the employee did not receive an income support payment because they reported employment incomeExternal Link above the income cut-offExternal Link for the income support payment.

    Part-time and casual employment and receiving income support payments

    If an employee works on a part-time or casual basis and also receives income support payments, this does not exclude the individual as an eligible employee. The individual may count all the days they were receiving the income support payment towards the pre-employment requirement.

    The employee may still be eligible even if earnings from previous employment reduce the income support payment down to zero. The days that the individual received a nil rate of income support payment due to these earnings will still count towards the pre-employment requirement. To be eligible, the total days they were receiving income support (whether paid days or nil rate dates) must be at least 28 consecutive days out of the 84 days before they started employment.

    If an individual’s previous employer is claiming the JobMaker Hiring Credit payment for them at the same time as they were receiving income support payments, this will also not exclude them from counting those days towards the pre-employment requirement.

    Example – Receiving income support prior to starting employment

    Kabir was stood down without pay on 10 March 2020. His employer acted in accordance with the Fair Work Act.

    After being stood down, he applied for the JobSeeker Payment on 15 March 2020. Kabir started receiving payment for fortnights beginning 15 March.

    On 5 September 2020, Kabir started working as a full-time employee at a hotel. As his income was above the maximum income threshold and he was no longer unemployed, Kabir stopped qualifying for JobSeeker payments.

    On 15 October 2020 Kabir started a new job at a café. Although Kabir was not receiving JobSeeker just before he started working at the café, he received JobSeeker payments up to 5 September 2020, this was more than 28 consecutive days within the 84 days of starting employment with the café. He satisfies the pre-employment requirement.

    End of example

     

    Example – Receiving a part income support payment

    Pierre is a 24 year old part-time employee at a fishing tackle store. He receives Youth Allowance for jobseekers. As his weekly pay is under the income threshold, he is entitled to a part-rate of the Youth Allowance payment.

    Pierre started getting Youth Allowance in August 2020 and has continued receiving it since. In November 2020, Pierre starts a new job at a boat tour business and is no longer eligible for income support payments.

    As Pierre has been on Youth Allowance for more than 28 consecutive days within the last 84 days prior to starting employment he satisfies the pre-employment requirement.

    End of example

     

    Example – Employee that was on income support but hired prior to 7 October 2020

    Sara received the Parenting Payment during June and July 2020. In August 2020, Sara started employment at a café. Sara is 28 years old and works 25 hours per week.

    Sara’s new employer will not be able to claim the JobMaker Hiring Credit payment for Sara, as despite meeting the income support criteria, she started working at the café before 7 October 2020. Therefore, Sara will not satisfy the eligible employee criteria.

    End of example

     

    Example – Employee that works for multiple employers

    Sam is 25 and works part time for 2 employers. He started working for the first employer on 7 November 2020 and works 25 hours a week. He started with the second employer on 25 November 2020 and works 15 hours a week. Sam received the JobSeeker Payment for the 3 months immediately prior to starting employment.

    Sam completes a JobMaker Hiring Credit employee notice for the first employer.

    Sam meets the pre-employment requirement for both employers. Although Sam works for multiple employers, only the employer Sam provides an employee notice (being the one employing him for more than 20 hours per week) can be eligible.

    End of example

    Contractors

    You cannot claim the JobMaker Hiring Credit payment:

    • for an individual performing work other than as an employee (for example, a contractor or subcontractor)
    • for an individual who  
      • starts employment between 7 October 2020 and 6 October 2021
      • at any time between 6 April and 6 October 2020, worked (other than as an employee) in a substantially similar role or performed substantially similar functions or duties.

    This applies to contractors and subcontractors engaged prior to the JobMaker Hiring Credit scheme.

    Labour hire

    If you use a labour hire worker (who is not employed by you) they are not an eligible employee and you cannot claim the JobMaker Hiring Credit for them.

    See also:

    Minimum hours requirement

    To be an eligible additional employee for the JobMaker Hiring Credit payment, an employee must complete a minimum average of 20 hours of work per week across each JobMaker period from the time they are employed. This can include either:

    • hours the employee is paid for
    • hours the employee works.

    Hours paid

    Hours of paid work include paid overtime, paid leave and paid absences on public holidays. It does not include any unpaid leave.

    This may be more appropriate if your employees are paid on an hourly or similar basis.

    Hours worked

    The number of hours actually worked include any hours worked, including unpaid overtime, paid leave and paid absences on public holidays.

    This may be more appropriate if your employees are not paid on a particular rate (such as salaried employees).

    Example – Taking unpaid and paid leave during the JobMaker period

    Maisy starts employment at Doggy Day Care Pty Ltd on 16 December 2020. She works 5 hours per day, Mondays to Fridays.

    Shortly after starting employment, Maisy needs to take unpaid leave from 2 January 2021. Maisy returns to work 31 January 2021. She was on paid leave for her usual hours (5 hours per day) over the Christmas period while the business was closed.

    For the first JobMaker period from 7 October 2020 to 6 January 2021, Maisy's employer includes the paid leave she received over the Christmas period when working out Maisy's average hours. The employer cannot include the unpaid leave days that occur during the first JobMaker period from 2 January to 6 January 2020. Maisy's employer can count 13 days of work for 5 hours per day.

    End of example

     

    Example – Taking paid leave during the JobMaker period

    Noah is a 24 year old hairdresser who was receiving Youth Allowance for job seekers. Noah started full-time employment at a salon on 7 October 2020. Noah worked for 20 hours per week until 20 December.

    Noah took paid leave for the next two weeks to visit his family over the holiday period. When Noah returned to work, he began working 20 hours a week again. Noah's paid leave will count towards the hours worked.

    End of example

    Working out whether your employee has met the hours requirement

    The minimum hours requirement tests the average hours worked (either paid hours of work or actual hours worked) over the entire JobMaker period. Your employees do not have to work 20 hours in each week – you can work out this requirement based on the hours worked for the days that they were employed within the JobMaker period.

    To determine whether your eligible employee meets the hours requirement you will need to calculate the total number of hours your employee needs to have worked during the entire period.

    This is worked out by dividing the number of days the employee was employed in the JobMaker period by 7 (rounding down to the nearest whole number) then multiplying by 20.

    If the hours worked by your employee are less than the amount calculated above, they will not have met the minimum hours requirement and cannot be eligible for that JobMaker period.

    Example – Meeting the hours condition

    Marie and Kevin are both new employees at a café on 7 January 2021. The café is eligible to receive the JobMaker Hiring Credit payment and intends to claim it for Marie and Kevin’s employment. Both Marie and Kevin are employed for the entire second JobMaker period and must work at least 240 hours in the JobMaker period.

    Marie is employed full-time, working 35 hours per week on average across the JobMaker period. Marie’s full-time employment easily satisfies the average hours requirement of 20 hours per week.

    Kevin works full-time for the first four weeks of the JobMaker period, working 35 hours per week before switching to one afternoon shift a week to accommodate his university course, working only 6 hours per week for the remainder of the period. Kevin works 188 hours across the period (an average of 16 hours per week).

    Kevin has not worked enough hours for his employer to claim the JobMaker Hiring Credit payment.

    End of example

     

    Example – Hiring an eligible employee partway through a JobMaker period

    Marco is a 30 year old labourer who was receiving the JobSeeker payment.

    On 28 November 2020, Marco started employment with a construction company. Marco worked for 25 hours per week for the rest of the JobMaker period.

    To satisfy the minimum hours requirement, Marco must work at least 100 hours in the period (being 40 days employed, divided by 7, rounded down and multiplied by 20). Marco will satisfy this requirement, as he has worked 125 hours in the remainder of the period.

    End of example

    If your employee does not meet the minimum hours required

    If your employee does not meet the minimum number of required hours for one JobMaker period they will not be eligible for that JobMaker period. However, if they meet the minimum hours requirement in a subsequent JobMaker period they may be eligible for that period.

    Example – Taking unpaid leave during the JobMaker period

    Angie is a part-time university student who was receiving JobSeeker for the months of January, February and March 2021. On 7 April 2021 she started employment as a waitress at a local restaurant. Angie worked 20 hours per week for the rest of April and the whole of May. Angie became sick in early June and had to take 2 weeks of unpaid leave. When she returned to work, she began working 20 hours a week again, but was not able to work extra hours due to her university commitments.

    As unpaid leave does not count towards the 20 hours worked per week, Angie’s average hours worked for the JobMaker period do not satisfy the minimum hours requirement. The restaurant will not be able to claim the JobMaker Hiring Credit payment for Angie for the JobMaker period ending on 6 July 2021.

    The restaurant will still be entitled to claim the JobMaker Hiring Credit payment for Angie in future JobMaker periods if all the requirements are met.

    End of example

    Records to keep

    You are required to keep records on hours worked by your employees. We will be monitoring employers claiming JobMaker Hiring Credit payments and we may review your claim. If so, we will ask you to provide documentation to substantiate the hours your employees worked. This may include:

    • employment records such as payslips, payroll data, rosters and time sheets
    • business diaries, appointment books and logbooks.

    If you do not maintain adequate records:

    • you may not be entitled to claim a payment
    • we may recover an overpayment.

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    Last modified: 15 Jan 2021QC 64263