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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Xero just made EOFY workpapers a lot less painful
TPAR deadline & CGT/negative gearing reform consultation
The Australian Taxation Office (ATO) has announced a significant change affecting how small businesses process employee superannuation contributions through its Small Business Super Clearing House (SBSCH). Effective 30 June 2026, the ATO will cease providing the Small Business Super Clearing House (SBSCH) service. This change means that small businesses will need to transition to an alternative method for paying superannuation contributions to their employees' chosen funds before the deadline. What is the SBSCH? The Small Business Super Clearing House is a free, online service provided by the ATO that allows eligible small businesses (those with 19 or fewer employees, or with an annual aggregated turnover of less than $10 million) to make all their super guarantee contributions in a single transaction. The ATO then distributes the payments to the employees' respective super funds. The service has been a convenient tool for simplifying compliance and reducing the administrative burden on smaller enterprises. Why is the ATO making this change? The move is part of the broader push towards streamlining business processes and encouraging the adoption of more integrated, commercial solutions. With the proliferation of payroll and accounting software that incorporates Single Touch Payroll (STP) and superannuation payments, the ATO is transitioning out of directly providing this service. What are Your Alternative Options? The good news is that the market offers numerous robust and integrated alternatives that can handle your superannuation obligations seamlessly. Businesses must select and implement a new system before the 30 June 2026 cut-off date to ensure continuous compliance. Here are the most common alternative solutions: 1. Cloud-Based Accounting and Payroll Software Most modern cloud-based accounting platforms include integrated payroll functionality that allows you to calculate, process, and pay super contributions directly. These systems are often pre-configured to meet STP requirements and simplify compliance. Xero Integrated payroll with key features of direct super contribution payment and STP compliance. Suitable for Small to Medium Businesses (SMBs) seeking a comprehensive accounting and payroll solution. QuickBooks Online Payroll integration with key features of automated super calculation and payment (via partners like Employment Hero Payroll). Suitable for SMBs already using the QuickBooks ecosystem or needing strong project tracking. MYOB Offers various payroll solutions (e.g., MYOB Business) with key features of integrated super and STP reporting. Suitable for Businesses needing robust local reporting and compliance features. 2. Commercial Superannuation Clearing Houses If your business prefers to keep payroll and superannuation separate from your accounting software, or if you use a system without integrated super payments, a dedicated commercial clearing house may be the answer. These services specialise in handling the distribution of super payments to multiple funds. 3. Employee Super Fund's Clearing House Some large superannuation funds offer their own clearing house services, which may be available to employers who contribute to that fund. Check with your employees' primary super funds to see if this is an available, viable option for your business. Action Plan: Next Steps for Your Business To ensure a smooth transition, small businesses should begin planning immediately: Assess Your Current System: Review your existing accounting or payroll software. Does it offer integrated super payment functionality? Evaluate Alternatives: Research the options listed above (Xero, QuickBooks, MYOB, commercial clearing houses) and determine which best fits your business size, budget, and existing processes. Plan the Transition: Allow ample time (well before June 2026) to select, set up, and test your new system. This includes migrating employee and fund details. Seek Professional Advice: Consult with your accountant or bookkeeper to ensure your chosen solution is compliant and correctly implemented.
Xero just made EOFY workpapers a lot less painful
TPAR deadline & CGT/negative gearing reform consultation
The Australian Taxation Office (ATO) has announced a significant change affecting how small businesses process employee superannuation contributions through its Small Business Super Clearing House (SBSCH). Effective 30 June 2026, the ATO will cease providing the Small Business Super Clearing House (SBSCH) service. This change means that small businesses will need to transition to an alternative method for paying superannuation contributions to their employees' chosen funds before the deadline. What is the SBSCH? The Small Business Super Clearing House is a free, online service provided by the ATO that allows eligible small businesses (those with 19 or fewer employees, or with an annual aggregated turnover of less than $10 million) to make all their super guarantee contributions in a single transaction. The ATO then distributes the payments to the employees' respective super funds. The service has been a convenient tool for simplifying compliance and reducing the administrative burden on smaller enterprises. Why is the ATO making this change? The move is part of the broader push towards streamlining business processes and encouraging the adoption of more integrated, commercial solutions. With the proliferation of payroll and accounting software that incorporates Single Touch Payroll (STP) and superannuation payments, the ATO is transitioning out of directly providing this service. What are Your Alternative Options? The good news is that the market offers numerous robust and integrated alternatives that can handle your superannuation obligations seamlessly. Businesses must select and implement a new system before the 30 June 2026 cut-off date to ensure continuous compliance. Here are the most common alternative solutions: 1. Cloud-Based Accounting and Payroll Software Most modern cloud-based accounting platforms include integrated payroll functionality that allows you to calculate, process, and pay super contributions directly. These systems are often pre-configured to meet STP requirements and simplify compliance. Xero Integrated payroll with key features of direct super contribution payment and STP compliance. Suitable for Small to Medium Businesses (SMBs) seeking a comprehensive accounting and payroll solution. QuickBooks Online Payroll integration with key features of automated super calculation and payment (via partners like Employment Hero Payroll). Suitable for SMBs already using the QuickBooks ecosystem or needing strong project tracking. MYOB Offers various payroll solutions (e.g., MYOB Business) with key features of integrated super and STP reporting. Suitable for Businesses needing robust local reporting and compliance features. 2. Commercial Superannuation Clearing Houses If your business prefers to keep payroll and superannuation separate from your accounting software, or if you use a system without integrated super payments, a dedicated commercial clearing house may be the answer. These services specialise in handling the distribution of super payments to multiple funds. 3. Employee Super Fund's Clearing House Some large superannuation funds offer their own clearing house services, which may be available to employers who contribute to that fund. Check with your employees' primary super funds to see if this is an available, viable option for your business. Action Plan: Next Steps for Your Business To ensure a smooth transition, small businesses should begin planning immediately: Assess Your Current System: Review your existing accounting or payroll software. Does it offer integrated super payment functionality? Evaluate Alternatives: Research the options listed above (Xero, QuickBooks, MYOB, commercial clearing houses) and determine which best fits your business size, budget, and existing processes. Plan the Transition: Allow ample time (well before June 2026) to select, set up, and test your new system. This includes migrating employee and fund details. Seek Professional Advice: Consult with your accountant or bookkeeper to ensure your chosen solution is compliant and correctly implemented.
