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HomeAustralian Budget 2020Can you use the JobMaker Hiring Credit? Program Checklist and Detailed Explanations

Can you use the JobMaker Hiring Credit? Program Checklist and Detailed Explanations

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As part of the 2020-21 Federal Budget announced in October, the government unveiled the JobMaker Hiring Credit to incentivise businesses to hire young job seekers over the next 12 months.

The credit will cost $4bn over three years to support the employment of 450,000 people aged 35 and younger.

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

The initiative has been welcomed, as youth unemployment is now 14.3 per cent, more than double the general rate of unemployment (6.8 per cent).

Young people have also suffered the biggest spike in unemployment during the global financial crisis, and even before the COVID-19 recession when they were more than twice as likely to be unemployed.

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.

Eligible employers

Employers are eligible to receive the JobMaker Hiring Credit if they:

  • have an Australian Business Number (ABN);
  • are up to date with tax lodgement obligations;
  • are registered for Pay As You Go (PAYG) withholding;
  • are reporting through Single Touch Payroll (STP);
  • meet the additionality criteria;
  • are claiming in respect of an eligible employee; and
  • have kept adequate records of the paid hours worked by the employee they are claiming the hiring credit in respect of.

Newly established businesses

Newly established businesses and businesses with no employees at the reference date of 30 September 2020 are able to claim the JobMaker Hiring Credit where they meet the criteria. The minimum baseline headcount is one, so employers who had no employees at 30 September 2020 or who were created after this reference date will not be eligible for the first employee hired, but will be eligible for the second and subsequent eligible hires.

Eligible employees

To be an eligible employee, the employee must:

  • be aged either:
    • 16 to 29 years old, to attract the payment of $200 per week; or
    • 30 to 35 years old to attract the payment of $100 per week at the time their employment started;
  • have worked at least 20 paid hours per week on average for the full weeks they were employed over the reporting period;
  • commenced their employment between 7 October 2020 and 6 October 2021;
  • have received the JobSeeker Payment, Youth Allowance (Other), or Parenting Payment for at least one month within the past three months before they were hired;
  • be in their first year of employment with this employer, reflecting that the hiring credit is only available for 12 months for each additional job; and
  • must be employed for the period that the employer is claiming for them.

Employees may be employed on a permanent, casual or fixed term basis.

Ineligible employees

The following are not eligible employees for the JobMaker Hiring Credit:

  • employees aged under 16 years or over 35 years at the time their employment started;
  • employees for whom the employer is also receiving a wage subsidy under another Commonwealth program such as the Boosting Apprenticeship Commencements wage subsidy, Supporting Apprentices and Trainees subsidy and the Australian Apprentice Wage Subsidy Trial;
  • employees that another employer is claiming the JobMaker Hiring Credit in respect of; and
  • 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.

When will the JobMaker Hiring Credit end?

The JobMaker Hiring Credit will be available for each new job employers create over the next 12 months for which they hire an eligible young person. It will close to new entrants on 7 October 2021. An eligible employer who hires an eligible employee on 6 October 2021 (the last day that the scheme is open to new entrants) could be eligible for payments for the 12 months to 6 October 2022.

How do I register?

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

Employers can submit claims from 1 February 2021.

How and when do I lodge a claim for the JobMaker Hiring Credit?

Employers can submit claims from 1 February 2021 (for new jobs created in the first reporting period of 7 October 2020 to 6 January 2021). Employers will have three months to submit claims following the opening of the claim period.

Can I receive the JobKeeper Payment and the JobMaker Hiring Credit at the same time?

No, you cannot receive the JobKeeper Payment and the JobMaker Hiring Credit at the same time.

An employer receiving the JobKeeper Payment can be eligible for the JobMaker Hiring Credit once they have exited the JobKeeper Payment and are no longer receiving the JobKeeper Payment for any employees or business participants. Eligibility for the hiring credit will commence in the reporting period following their JobKeeper exit date.

For example, Rohana’s Hair Salon in Melbourne is eligible for the JobKeeper Payment extension from 28 September 2020 to 3 January 2021, but is not eligible for the JobKeeper Payment extension from 4 January 2021 to 28 March 2021 as business improves in the December 2020 quarter. As the Hair Salon is no longer eligible for the JobKeeper Payment from 4 January 2021, Rohana can claim the JobMaker Hiring Credit for hiring Max, a 25 year old qualified hair stylist who had been receiving JobSeeker Payment, for the 7 January 2021 – 6 April 2021 reporting period.

Can I receive the JobMaker Hiring Credit and other Commonwealth Government wage subsidies for the same employee?

Employers cannot access more than one Commonwealth wage subsidy program for the same employee. This includes the Department of Education, Skills and Employment’s wage subsidies, the Boosting Apprenticeships Commencements Wage Subsidy, the Supporting Apprentices and Trainees Wage Subsidy, and the Australian Apprentice Wage Subsidy Trial.

More information available on the Treasury website here.


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Ellie Dudley
Ellie Dudley is a journalist at Dynamic Business with a background in the startup space and current affairs reporting. She has a specific interest in foreign investment and the Australian economy.