JobMaker Hiring Credits

If your business hired employees after 6 October, 2020 then you may be eligible for the JobMaker Hiring Credits payment. This could be worth up to $10,400 per eligible employee.

Key details and eligibility criteria are:

1.       New employee aged 16-35 at time of hiring;

2.       New employee works at least 20 hours per week;

3.       New employee to have received Centrelink (Income Support Payments) for at least 1 month of last 3 months, prior to being hired;

4.       Business not currently on Jobkeeper;

5.       Scheme covers new employees from 7 October, 2020 to 6 October 2021;

6.       Weekly credits of $200 for eligible employees aged 16-29, and $100 per week for eligible employees aged 30-35;

7.       Quarterly payment of above credits.

Below is the detail on this scheme as provided by the Australian Taxation Office:

On 6 October, 2020 as part of the 2020-21 Budget, the 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.

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 register with us and make claims quarterly, with claims commencing in February 2021.

This measure is subject to the passage of legislation.

The JobMaker Hiring Credit 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 Credit 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).

Eligible employees must have worked an average of at least 20 hours per week over the 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.

Further eligibility conditions will apply to employers based on the employer’s headcount and payroll on 30 September 2020. These conditions ensure that employers claim credits for additional jobs created rather than for replacing existing employees.

We will provide further information on eligibility criteria and how employers can register for the JobMaker Hiring Credit as it becomes available.