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JobMaker Details from the 2020-21 Federal Budget

The Government have continued their theme of JobKeeper & JobSeeker and have revealed the latest economic recovery plan, JobMaker. The scheme includes two main components being:

  • Hiring credits; and
  • Boosting of Wage subsidy support for new Australian apprentices.

JobMaker - Hiring Credit

The scheme is designed to give businesses incentive to hire young job seekers, particularly from the age bracket 16 – 35 years and is expected to cost $4 billion.

Eligible employers can claim a hiring credit for each additional position they create for an eligible employee from the period 7 October 2020 to 6 October 2021. The JobMaker hiring credits will be claimed quarterly in arrears from the ATO starting from 1 February 2021 based on the following rates:

  • $200 a week for each additional eligible employee aged 16 to 29 years old
    (Totalling to $10,400 for the 12 month period the credits are available)
  • $100 a week for each additional eligible employee aged 30 to 35 years old
    (Totalling to $5,200 for the 12 month period the credits are available)

Qualifying as an eligible employer

In order to qualify as an eligible employer, the following requirements must be met:

  • Has an Australian Business Number (ABN)
  • Is up to date with tax lodgement obligations
  • Is registered for Pay As You Go (PAYG) withholding
  • Is reporting through Single Touch Payroll
  • Meets the additional criteria (overall employment has increased)
  • Is claiming in respect of an eligible employee (see below)

In addition to the above list, there are employers who are specifically listed as ineligible. Further information on excluded employers can be found here however the most common scenario would be the exclusion of employers who are currently receiving JobKeeper payments.

Qualifying as an eligible employee

In order for an employee to be eligible for the JobMaker incentive, the employee hired into the newly created position must:

  • Be aged between 16 and 35 years old at the time their employment started
  • Have worked at least 20 paid hours per week for the weeks they were employed during the 12 month 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.

Eligible employees will be required to complete a nomination form to declare that they meet the above requirements.

Registrations for the hiring credit incentive will be available using ATO online services from 7th December 2020.

JobMaker - Boosting wage subsidy support for new Australian apprentices

The apprenticeship wage subsidy program announced in July 2020 will be extended to allow businesses of all sizes to claim the subsidy.

Eligible businesses that employ apprentices or trainees will be able to receive up to a 50% wage subsidy capped at up to $7,000 per quarter. This incentive will be available to the first which will be 100,000 new apprentice / trainee positions and is expected to cost $1.2 billion.

The boosting wage subsidy support measure will run from 5 October 2020 to 30 September 2021.

If you would like more information on key measures we have covered follow the link below or visit the Government's Federal Budget page.

Federal Budget Overview

For more information around the JobMaker scheme our team of business advisers are here to help you, so please take a moment to talk with us.

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