The Treasury is now seeking submissions on the exposure draft Coronavirus Economic Response Package (Payments and Benefits) Amendment Rules (No. 9) 2020, which details the Treasurer’s rules around the JobMaker scheme.
Legislation for the JobMaker hiring credit has yet to be passed and is currently before the Senate economics legislation committee, with a report due on 6 November.
The draft rules establish that an entity may receive up to $200 per week for each eligible additional employee aged 16 to 29 years, and up to $100 per week for each eligible additional employee aged 30 to 35 years.
To be eligible, the employee will need to have worked for a minimum of 20 hours per week, averaged over a quarter, and received the JobSeeker payment, Youth Allowance (other) or Parenting Payment for at least one month out of the three months prior to when they are hired.
Employers must also meet a number of eligibility conditions, including being registered for pay-as-you-go (PAYG) withholding, hold an Australian business number (ABN), and be up to date with their tax lodgement obligations.
The explanatory memorandum also notes that the Commissioner of Taxation will “specify that the information that must be provided in relation to an entity’s entitlement is to be provided through the Single Touch Payroll reporting regime”.
“This will mean that entities must be enrolled in Single Touch Payroll reporting in order to qualify for the JobMaker scheme,” the explanatory memorandum said.
The Institute of Public Accountants had previously submitted that the STP requirement would be unfair towards micro employers and closely held entities who are currently still exempt from reporting through STP up to 30 June 2021.
It also believes the requirement to have at least one employee who is not on the JobMaker hiring credit before the payment kicks in for subsequent hires will disincentivise sole traders from accessing the scheme.
The rules also note that relatives of a sole trader, partner in a partnership, trustee or beneficiary of a trust, or shareholder or director of a company will not be considered as an eligible additional employee for the credit.
Consultation on the draft rules will run to 27 November.
reference: https://www.accountantsdaily.com.au/tax-compliance/15009-draft-jobmaker-hiring-credit-rules-released
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