On 6 October 2020 as part of the 2020–21 Budget, the Federal Government announced a new incentive for businesses to employ additional young job seekers called the JobMaker Hiring Credit. The JobMaker Hiring Credit will be administered by the ATO and is a $74 billion Plan designed to support a stronger economic recovery and bring more Australians back to work.
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 need to register with the ATO and make claims quarterly, with claims commencing in February 2021.
The JobMaker Hiring Credits will be:
- $200 per week for each eligible employee aged 16 to 29
- $100 per week for each eligible employee aged 30 to 35.
An employer cannot claim JobKeeper and JobMaker Hiring Credits at the same time.
To be eligible, employers must:
- hold an Australian Business number (ABN)
- be up-to-date with their tax lodgement obligations
- be registered for Pay As You Go (PAYG) withholding
- be reporting through Single touch payroll (STP).
- Meet the job creation criteria
The job creation criteria are that employers must have an increase in both:
- total employee headcount from 30 September 2020, and
- total payroll in the JobMaker period, compared to the 3 months up to 6 October 2020
Eligible employees must have worked an average at least 20 hours per week over the preceding 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.
For the employer to be eligible, new employees must:
- 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.
If you have any further questions please contact Evans & Hearn on 07 49 276 888.
Fact sheet can be found here: https://bit.ly/3gsH7m3