How To Grow With JobMaker
March 10, 2021
JobMaker information for 2021!
2021 is shaping up to be an interesting year for businesses in Australia. With faster than expected growth and changes to restrictions confidence is returning to the community. To encourage this growth the federal government has introduced a new scheme for businesses to employ additional young job seekers aged 16–35 years. Eligible employers can access the JobMaker Hiring Credit
for each eligible additional employee they hire between 7 October 2020 and 6 October 2021.
JobMaker Explained
The scheme will be backdated to commence on 7 October 2020 and provide eligible employers with the following payments for up to 12 months for new jobs created where they hire the following young workers:
- $200 a week for hiring a worker aged 16 to 29 on at least 20 hours a week
- $100 a week for those aged 30 to 35
It is important to note that the scheme will run for 12 months and that is the hiring period – not the payment period. The payment period could extend into 2022, depending on the hiring date of the eligible employee. Employers who hire an eligible employee on the last day of the scheme (6 October 2021), may be eligible for hiring credits for the subsequent 12 months until 6 October 2022.
Who is eligible?
The criteria is very broad for this scheme. Any business with an ABN, is registered for PAYG withholding, is up to date with lodgment obligations and is currently reporting through STP is eligible.
The excluded employers are as follows:
- employers who are claiming JobKeeper
- entities in liquidation or who have entered bankruptcy
- federal, state, and local government agencies (and entities wholly owned by these agencies)
- employers subject to the major bank levy
- sovereign entities (except those who are residents)
- Australian entities owned by a sovereign entity
JobMaker Dates
The JobMaker Hiring Credit scheme starts on 7 October 2020. It may be possible to claim payments relating to employees hired up until 6 October 2021. Employees hired on or after 7 October 2021 are not eligible employees.
- 6 December 2020 – registrations open
- Register from 6 December 2020. Only register once and each business must be registered before any claims can be lodged.
- 1 February 2021 – first claim period opens
- Claim JobMaker Hiring Credit payments from 1 February 2021 as long as registered businesses have met the other eligibility requirements (including reporting through Single Touch Payroll).
- 30 April 2021 – first claim period closes
- Claim JobMaker Hiring Credit for the first JobMaker period until the end of 30 April 2021. Claim by the end of the claim period to receive JobMaker Hiring Credit for that period.
- 6 October 2022 – scheme ends
- The JobMaker Hiring Credit scheme will end on 6 October 2022.
Claim period dates for later JobMaker periods are set out below:
- Period 1: 7 October 2020 to 6 January 2021
- Period 2: 7 January 2021 to 6 April 2021
- Period 3: 7 April 2021 to 6 July 2021
- Period 4: 7 July 2021 to 6 October 2021
- Period 5: 7 October 2021 to 6 January 2022;
- Period 6: 7 January 2022 to 6 April 2022
- Period 7: 7 April 2022 to 6 July 2022
- Period 8: 7 July 2022 to 6 October 2022
How to grow with JobMaker
JobMaker is a great option for businesses that are not only planning to recover but to grow in the next 12 months. For businesses that are currently experiencing growth this lowers the cost of employing new people, particularly in the e-commerce space.
For businesses who may be currently pre-growth but are anticipating and planning for growth after the return off office workers or lifting of restrictions, such as retail and hospitality, now is the time to start planning new hires in the coming quarter who are eligible for this scheme.
Other businesses specifically in the service industry may be planning to move their delivery into new physical or online locations this year. The time is now to start thinking about the right support staff for these changes who are eligible for the scheme.
Any questions about how to plan your growth and how this scheme could work for you? Please get in touch
we are always happy to help!
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Simple Financial Habits for Business Owners Running a business comes with a myriad of responsibilities, and sometimes, financial management can feel overwhelming. However, by adopting a few simple financial habits, business owners can maintain better control over their finances, ensure long-term stability, and reduce stress. This blog post will outline some essential practices that can make a significant difference. 1. Separate Business and Personal Finances This is perhaps the most fundamental rule for any business owner. Commingling funds can lead to confusion, complicate tax filings, and make it difficult to accurately assess your business's financial health. ● Open Separate Accounts: Set up distinct bank accounts and credit cards for your business. ● Avoid Personal Expenses from Business Accounts: Even small, seemingly insignificant personal purchases from your business account can create headaches. ● Pay Yourself a Salary: Treat yourself as an employee of your business and pay yourself a regular salary. 2. Track All Income and Expenses Accurate record-keeping is crucial for understanding where your money comes from and where it goes. This information is vital for budgeting, forecasting, and tax preparation. ● Use Bookkeeping Software: Invest in reliable accounting software like MYOB, Xero, or QuickBooks. These tools automate many tasks and provide clear financial reports. ● Categorise Transactions: Consistently categorise your income and expenses. This helps you identify spending patterns and areas for improvement. ● Keep Receipts: Digitise or keep physical copies of all business-related receipts. This is essential for auditing and expense verification. 3. Regular Review of Financial Statements Don't just record transactions; understand what they mean. Regularly reviewing your financial statements will provide insights into your business's performance. ● Profit and Loss (P&L) Statement: Review your P&L monthly to see your revenues, costs, and profits. ● Balance Sheet: Check your balance sheet quarterly to understand your assets, liabilities, and equity. ● Cash Flow Statement: Analyse your cash flow regularly to ensure you have enough liquidity to meet your obligations. 4. Create and Stick to a Budget A budget is your financial roadmap. It helps you allocate resources effectively, prevent overspending, and work towards your financial goals. ● Develop a Realistic Budget: Base your budget on historical data and realistic projections. ● Monitor and Adjust: Regularly compare your actual spending to your budget and make adjustments as needed. ● Allocate Funds for Taxes: Set aside a portion of your income for taxes, as estimated taxes can be a significant surprise if not planned for. 5. Build an Emergency Fund Just like personal finances, businesses need an emergency fund to weather unexpected challenges, such as a sudden drop in sales, equipment breakdown, or economic downturns. ● Set a Target: Aim to have at least 3-6 months of operating expenses saved. ● Automate Savings: Set up automatic transfers from your operating account to your savings account. 6. Regularly Reconcile Bank Statements Bank reconciliation ensures that your internal records match your bank statements. This helps catch errors, detect fraud, and verify the accuracy of your books. ● Monthly Reconciliation: Reconcile your bank accounts and credit card statements every month. ● Investigate Discrepancies: Promptly investigate any differences between your records and the bank's records. 7. Seek Professional Advice While these habits provide a strong foundation, there will be times when you need expert guidance. ● Consult a Bookkeeper or Accountant: A professional bookkeeper or accountant can help set up your systems, ensure compliance, and provide strategic financial advice. ● Tax Planning: Work with a tax professional to optimise your tax strategy and ensure you're taking advantage of all eligible deductions. By consistently practicing these simple financial habits, business owners can gain a clearer picture of their financial health, make informed decisions, and pave the way for sustainable growth. Start implementing these habits today, and watch your business thrive. For more detailed guidance and personalised support, contact us at 360 Accounting Bookkeeping Services. We're here to help your business succeed. Contact Us: Phone: Parikshit Kikla (PK) Email: pkikla@360accountingservices.com.au Website: https://www.360accountingservices.com.au/
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