The federal budget 2020 is out on 7 October 2020.
It contains several measures, totaling $54 billion from the Australian Government trying to save the Australian Economy from the wreck of COVID-19. Some of the steps are about the tax cut, including individual tax rates, and the ability for the business to carry back losses. We will discuss some of these measures in our upcoming videos on our YouTube channel. Stay tuned.
We are entering the rebuilding phase. As part of the 2020 budget, many people are speculating that the Australian Government will be likely to raise nearly 1 trillion dollars to fund the tax cut and tax incentive.
A critical aspect of the federal budget is the JOB MAKER program. From 7 October 2020, if the eligible business hires an additional employee, who is on the job seeker, youth allowance, or other government benefits, then depending on the age of up to 35 years old, the eligible business can get up to $200 per week as hiring credit to employ the people. If you want to reduce your taxes and want the Government to pay for your employees, please talk to us, As one of the most professional and experienced accountants and tax agents in Inner West Sydney we will be able to help you to reduce your taxes.
The Australian Government is labeling this as a $4 billion job hiring which aims to create 450,000 new positions.
Hence from 7 October 2020, eligible employers will be able to claim $200 a week for each additional eligible employee they hire aged 16 to 29 years old; and $100 a week for each other eligible employee aged 30 to 35 years old.
The hiring credit will last for 12 months. Hence it will apply for all new jobs created until 6 October 2021; however, if you had hired staff on 6 October 2021, it will last for another 12 months.
To be eligible, the employee must have received the jobseeker payment, youth allowance (others), or parenting payments for at least one of the previous three months at the time of hiring.
It is important to note that the employer does not need to satisfy the fall in the turnover test, and it is claimed in arrears from ATO quarterly.
The criteria to meet the Job Maker Program are:
- Have an Australian Business Number
- Are up to date with tax lodgement obligation (hence if your business is not up to date with the lodgement, you might lose out from this grant)
- Are registered for PAYG withholding
- Are reporting through Single Touch Payroll
- Meet the additionality criteria
- Are claiming in respect of an eligible employee
- Have kept adequate records of the paid hours worked by the employees, that they are claiming the hiring credit for.
Hence it is important to get your tax obligation up to date; otherwise, you might lose out on this once-in-a-lifetime hiring credit, meaning the Government will pay up to $200 per week for each employee you hire if you meet the criteria, How good is that? As one of the most experienced and professional accountants in Inner West Sydney Ashfield and Adelaide South Australia, we are here to help; we can help your business to get the job maker hiring credit please give John a call at 0410-829-900, or send him an email to firstname.lastname@example.org