By Michael Walsh, CEO, Walshs
Job losses have been extensive during the COVID-19 pandemic and the JobMaker Hiring Credit will give businesses incentives to take on additional employees aged between 16 and 35 years old.
The Federal Government estimates the initiative will support 450,000 jobs.
Like JobKeeper, the JobMaker Hiring Credit is a wage subsidy paid to employers at a fixed rate.
Eligible employers will receive $200 a week for each new employee aged between 16 and 29. For new eligible employees aged 30 to 35, they’ll receive $100 a week.
Businesses and employees will need to satisfy specific eligibility requirements.
For an employer to be eligible they must have an Australian Business Number and be up-to-date with their tax lodgement obligations, registered for Pay As You Go (PAYG), and be reporting through Single Touch Payroll.
Employers will not be eligible if they are also claiming JobKeeper Payment.
To receive the JobMaker Hiring Credit, employers must also meet additionality criteria, requiring an increase in the:
- Business’ total employee headcount from September 30, 2020; and
- Payroll of the business for the reporting period, as compared to the three months to 30 September 2020.
The JobMaker Hiring Credit will be available to employers for each new job they create over the next 12 months for which they hire an eligible young person.
The employee must work at least 20 paid hours per week on average and may be employed on a permanent, casual or fixed term basis.
The employee must also have received the JobSeeker Payment, Youth Allowance or Parenting Payment for at least one of the three months preceding the time of hiring.
The scheme will apply for workers hired from 7 October, but employers will have to wait until February 2021 to get the subsidy.
The Hiring Credit will be claimed quarterly in arrears by the employer from the Australian Tax Office (ATO) from February 1, 2021.
Employers will need to report to the ATO quarterly that they meet the eligibility criteria. Registrations will be open for eligible employers through ATO online services from December 7, 2020.
As always, should you have any questions or wish to discuss how the JobMaker incentives might affect you or your business, please contact us at Walshs on 07 3221 5677 or email email@example.com.