On 6th October 2020 as part of the 2020–21 Budget, the government announced a new incentive for businesses to employ additional young job seekers called the JobMaker Hiring Credit.
Eligible employers will have access to a JobMaker Hiring Credit for each new job they create over the 12 months from 7 October 2020, for which they hire an eligible employee, for a maximum claim period of 12 months from their employment start date.
Employers will register with the ATO and make claims quarterly, with claims commencing in February 2021.
This measure is subject to the passage of legislation.
JobMaker Hiring Credit
The JobMaker Hiring Credit will be:
- $200 per week for each eligible employee aged 16 to 29
- $100 per week for each eligible employee aged 30 to 35.
- Need to have an ABN
- Up-to-date with their tax lodgement obligations
- be registered for Pay As You Go (PAYG) withholding
- be reporting through Single touch payroll (STP).
- Claiming in respect of eligible employees and
- Have kept adequate records of the paid hours worked
An employer cannot claim JobKeeper and JobMaker Hiring Credit at the same time.
Further eligibility conditions will apply to employers based on the employer’s headcount and payroll on 30 September 2020.
Newly established business
- No employees at 30 September are able to claim
- Minimum baseline headcount is one, applies to subsequent employees
- Be aged 16 to 35 years
- be in receipt of income support payments (such as JobSeeker Payment, Youth Allowance (Other), or Parenting Payment) for at least one of the three months before they were hired.
Eligible employees must have worked an average of at least 20 hours per week over the quarter for the employer to qualify for the payment. Employees that start and/or stop employment during a quarter must meet a similar test based on the length of time in employment.
Action to Take
- Check if you are eligible employer
- Track how many employees full time/part time/casual at 30 September 2020
- Track new employees or employee between age range
- Registration opens from 7 December 2020
- Have 3 months to submit claims
- First reporting period of 7/10/2020 to 6/01/2021
- Submit claims from 1 February 2021
- At time of hire employee fills out nomination form