Job Maker Hiring Credits for Employers – How Does It Work?

One of the new financial assistance measures available under the 2020-21 Federal Budget is the Job Maker Scheme. This is an incentive for businesses to hire young people and create more jobs, which will hopefully, in turn, promote economic recovery. The legislation for Job Maker has not been finalised yet, however we are receiving lots of enquiry and will continue to update you with information as we receive it.

Job Maker is a scheme designed to encourage businesses to hire new employees – particularly young people. The Job Maker Hiring Credit provides $200 a week for new employees between 16-29 years old, and $100 a week for new employees between 30-35 years old. These credits are not passed onto the employee, as they are an incentive for the employer and can be claimed by employers from the 7^th October 2020 until the 6^th October 2021.

Your business can only receive Job Maker if the total employee headcount and payroll increases. For example, you cannot replace an existing employee and receive the payment. To claim the hiring credit, employers must be able to verify that they have increased their overall employment and will need to report their employees’ payroll information through STP. Further, there are three core eligibility tests for Job Maker:

1. Employer Eligibility

• Tax lodgement obligations must be met
• Must have PAYG and ABN registration
• Must be undertaking STP reporting
• Adequate record keeping of hours worked
• Not receiving other Government assistance such as JobKeeper

2. Employee Eligibility

• Have received support payments such as JobSeeker and Youth Allowance for at least one month within the past three months before being hired
• Between the ages of 16-35 at the time of employment commencing
• Worked at least 20 hours per week for the period being claimed
• Started working between 7 Oct 2020 and 6 Oct 2021
• Must be in their first year of employment

3. Additionality test
   • Total employee headcount must increase by at least one, when compared to the September 2020 quarter
   • Total payroll for the reporting period must increase when compared to September 2020 quarter
   • The hiring credit cannot exceed the payroll increase for the reporting period

Further information will be made available on any additional eligibility criteria and now employers can register for the Job Maker Hiring Credit as soon as it becomes available from the Government.

For more information on the Job Maker scheme, please visit Link – JobMaker  or call us on (07) 5451 1118.