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The JobMaker Hiring Credit Bill passed Parliament on Wednesday, confirming $4 billion to support around 450,000 jobs for people aged between 15 to 35.
The hiring credit is designed to encourage businesses to hire additional young employees and increase employment.
Youth unemployment was heavily impacted due to the lockdown caused by the COVID-19 pandemic.
“We see right now the unemployment rate for those aged 15 to 34 is 10.2 per cent, whereas the unemployment rate for those aged 35 to 44 is 4.7 per cent,” said Treasurer Josh Frydenberg on Channel Seven Sunrise.
Treasurer Frydenberg announced the passing of the legislation on Twitter on Wednesday night.
The JobMaker Hiring Credit is a fixed amount broken into two tiers:
- $200 per week for each eligible employee aged 16 to 29
- $100 per week for each eligible employee aged 30 to 35
This credit will be paid quarterly in arrears by the ATO to the eligible employers directly.
An eligible employee must have been receiving JobSeeker Payment, Youth Allowance (Other) or Parenting Payment for at least one of the previous three months, before they were hired.
Employers need to ensure a minimum of 20 hours per week of paid work for employees to be eligible.
In order to receive the hiring credit, businesses need to increase their payroll headcount as existing employees are not eligible for the credit.
This credit will be backdated to new eligible employees hired on or after October 7 2020.