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JobMaker Hiring Credit: Up to $200 a week to create jobs for young jobseekers

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The Government has unveiled the JobMaker Hiring Credit to incentivise businesses to hire young job seekers over the next 12 months.

It is expected to create around 450,000 positions for young Australians and cost the Government $4 billion from 2020-21 to 2022-23.

What is it?

From tomorrow, eligible employers will be able to claim $200 a week for each additional eligible employee they hire aged 16 to 29 years old and $100 a week for each additional eligible employee aged 30 to 35 years old.

Until 6 October 2021, the JobMaker Hiring Credit will be available for 12 months from the date the new position is created.

The credit will be claimed quarterly in arrears by the employer from the ATO from 1 February 2021.

Who is eligible?

Employers must have an ABN, be up to date with tax obligations, be registered for PAYG withholding, report through Single Touch Payroll and have kept adequate records of the paid hours worked by the employee they are claiming the hiring credit in respect of.

Multiple employers cannot claim the credit for the same employee.

Government agencies, sovereign entities, entities in liquidation, employers claiming JobKeeper payments and employers subject to the major bank levy are also ineligible.

The employee must:

  • Be aged between 16 years and 35 years at the time their employment started,
  • Fill an additional job created from 7 October 2020, and
  • Have received the JobSeeker Payment, Youth Allowance (Other), or Parenting Payment for at least one of the previous three months at the time of hiring.

If the employee leaves and is replaced with another eligible employee, the credit can continue to be claimed in respect of that position for the 12 month period.

Employees who receive a wage subsidy under another Commonwealth program, such as the Boosting Apprenticeship Commencements wage subsidy, are ineligible. Also, employees that worked on average less than 20 hours per week, for the full weeks they were employed during a reporting period will be ineligible for that period.

In addition, the business must have an increase in:

  • The total employee headcount (minimum of one additional employee) from 30 September 2020, and
  • The payroll of the business for the reporting period, as compared to the three months to 30 September 2020.

How do I register?

Registrations open through the ATO online services from 7 December 2020.

Employers can submit claims from 1 February 2021.

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Ann Wen
Ann Wen
Ann is a journalist at Dynamic Business with a background in commercial law and research. She is interested in SME tax law, public policy and Australian innovation.