Taking advantage of the JobMaker Hiring Credit

The Federal Government’s JobMaker Hiring Credit scheme has officially passed Parliament, providing incentive for employers to increase their staff headcount and hire new workers.

The scheme is a key part of the Government’s economic support and is aimed to boost the employment prospects for 16-35 year olds who were particularly impacted by restrictions imposed due to COVID-19.

The Government will provide $4 billion over three years from 2020-21 to accelerate employment growth by supporting organisations to take on additional employees through a hiring credit. The JobMaker Hiring Credit will be available to eligible employers over 12 months from 7 October 2020 for each additional new job they create for an eligible employee over this time.

Employers will be required to register with the Australian Taxation Office (ATO) and make claims quarterly, with claims commencing in February 2021.

 

Businesses will receive:
– $200 per week to hire a worker aged between 16 and 29, or
– $100 per week to hire a worker aged between 30 and 35.

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)
– have an increase in total employee headcount from 30 September 2020
– have an increase in payroll compared to the three months prior to 30 September.

Other criteria:
– employers do not need to satisfy a fall in turnover test
– employers cannot claim JobKeeper and JobMaker Hiring Credit at the same time
– employers will be required to register with the ATO and report claims quarterly, with claims commencing in February 2021
– employees will need to have worked for a minimum of 20 hours per week, averaged over a quarter
– employees will need to have received the JobSeeker Payment, Youth Allowance or Parening Payment for at least one month of the three previous months, assessed at the date of employment.

 

The JobMaker Hiring Credit will be available for up to 12 months from the date of employment of the eligible employee with a maximum amount of $10,400 per additional new position created.

For full details and eligibility criteria, click here to view the JobMaker Hiring Credit Factsheet.

Registrations will be open for eligible employers through ATO online services from 7 December 2020. Employers do not need to be registered at the time they hire an employee in order to be eligible and registration can occur at any time before a claim is made.

 

If you have questions regarding the JobMaker Hiring Credit, please give us a call on 03 5443 0344 or email us at afs@afsbendigo.com.au.