Updated 8 December.

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

The scheme is aimed to boost the employment prospects for 16-35 year olds who were particularly impacted by restrictions imposed due to COVID-19.

The JobMaker Hiring Credit will be available to eligible employers from 7 October 2020 to 6 October 2021 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 Parenting 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 view the JobMaker Hiring Credit Factsheet.

Registrations are now open. Register here: www.ato.gov.au/general/JobMaker-Hiring-Credit/Register-for-JobMaker-Hiring-Credit/

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.