Registrations Now Open for JobMaker Hiring Credit

JobMaker Scheme

Eligible employers are now able to register for the new JobMaker Hiring Credit scheme, in preparation for submitting claims from 1 February, 2021.

The JobMaker Hiring Credit payment is a wage subsidy paid directly to employers that will help to accelerate growth in the employment of young people during the COVID-19 economic recovery. The scheme is an incentive for businesses to employ additional job seekers aged 16 to 35 years.

Unlike the JobKeeper wage subsidy, this credit is not required to be passed onto the employee regardless of their hours worked; however employees must work an average of at least 20 hours a week. The credit is available for new jobs created from now until 6 October 2021 and the credit will stay in place for up to 12 months from the date of hire.

The only eligibility criteria that an employer must satisfy is that their total employee headcount must be greater after making the new hire than it was on 30 September 2020, and their payroll must also be higher, with the amount of the hiring credit claim not exceeding the increase in payroll.

Eligible employers can access the payment for up to 12 months for each eligible additional employee they hire between 7 October 2020 and 6 October 2021. They will be able to claim up to $200 a week for each additional eligible employee they hire aged 16 to 29 years, and up to $100 a week for those aged 30 to 35 years. This means that an employer will be eligible for up to a total of $10,400 over the year for each eligible employee aged 16 to 29 years or $5,200 if aged 30 to 35 years.

NatRoad encourages businesses to check their eligibility and take this first step to register for the scheme from this week and then employers will be ready to move to quickly make a claim in February 2021. You cannot claim if you are not registered.

Remember that new employees must have received the Parenting Payment, Youth Allowance (Other) or JobSeeker Payment for at least 28 consecutive days (or two fortnights) within the 84 days (or six fortnights) of being hired to allow for a claim to be made by the employer.

Key Points:

  • Employers and employees must meet eligibility requirements to receive the payment.
  • Employees must be aged 16 to 35 years.
  • Employees must have started employment between 7 October 2020 and 6 October 2021 (inclusive) and
  • Employees need to have completed a minimum average of 20 hours (worked or paid) per week during the time they were employed in the JobMaker period.

Key Dates:

  • The JobMaker Hiring Credit scheme started on 7 October 2020.
  • You may be able to claim for employees hired between 7 October 2020 and 6 October 2021.
  • You can register from 7 December 2020 through ATO online services, the Business Portal or your registered tax or BAS agent.
  • Claims for the first quarterly payment will open on 1 February 2021.
  • The last day you are able to claim for employees is 6 October 2021.
  • If you hire an employee on 6 October 2021, you are able to claim for payment to 6 October 2022.
  • The JobMaker Hiring Credit scheme will end on 6 October 2022.

NatRoad communications are intended to provide commentary and general information. They should not be relied upon as legal advice. Our advisors are available to clarify any questions you have and provide the right advice for your business and workforce. Contact David at david.johns@natroad.com.au or Richard at richard.calver@natroad.com.au, or on (02) 6295 3000