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Is your business eligible for the JobMaker Hiring Credit?

 

The JobMaker Hiring Credit will give businesses incentive to take on additional young job seekers.

The government’s JobMaker hiring credit wage subsidy program is expected to support nearly half a million young Aussies to gain employment.

It is designed to help accelerate growth in employment during the COVID recovery by giving businesses incentives to take on additional employees that are young jobseekers aged 16 to 35 years old.

It is expected to create around 450,000 positions for young Australians and cost the Government $4 billion from 2020-21 to 2022-23.

Are you wondering how it all works and if you may be eligible to benefit?

To receive the JobMaker hiring credit, you must be able to demonstrate an increase in the following:

  • the business’ total employee headcount (minimum of one additional employee) from the reference date of 30 September 2020
  • the payroll of the business for the reporting period, as compared to the three months to 30 September 2020.
Employer Eligibility

Employers are eligible to receive the wage subsidy if they:

  • have an Australian Business Number (ABN)
  • are up to date with tax lodgement obligations
  • are registered for Pay As You Go (PAYG) withholding
  • are reporting through Single Touch Payroll (STP)
  • meet the above criteria
  • are claiming in respect of an eligible employee
  • have kept adequate records of the paid hours worked by the employee they are claiming the hiring credit in respect of.

Newly established businesses and businesses with no employees at the reference date of 30 September 2020 are able to claim the JobMaker Hiring Credit where they meet the criteria. The minimum baseline headcount is one, so employers who had no employees at 30 September 2020 or who were created after this reference date will not be eligible for the first employee hired, but will be eligible for the second and subsequent eligible hires.

Employee Eligibility

To be an eligible employee, the employee must:

  • be aged 16 to 29 years old, to attract the payment of $200 per week
  • be aged 30 to 35 years old to attract the payment of $100 per week
  • have worked at least 20 paid hours per week on average for the full weeks they were employed over the reporting period
  • commenced their employment between 7 October 2020 and 6 October 2021
  • have received the JobSeeker Payment, Youth Allowance (Other), or Parenting Payment for at least one month within the past three months before they were hired
  • be in their first year of employment with this employer, reflecting that the hiring credit is only available for 12 months for each additional job
  • must be employed for the period that the employer is claiming for them. Employees may be employed on a permanent, casual or fixed term basis.
How to apply

Employers will be able to register for the scheme from December the 7th, 2020, via the ATO website and will make claims quarterly, with claims commencing in February 2021.

More information about registering can be found in the link below.

ATO – JobMaker Hiring Credit