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:
In order to qualify as an eligible employer, the following requirements must be met:
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.
In order for an employee to be eligible for the JobMaker incentive, the employee hired into the newly created position must:
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.
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.
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.