DFK Gooding Partners

November 16, 2020

Despite not being completely sure how this will impact hiring or support for those over the grand age of 36, the Senate committee has recommended the JobMaker Hiring Credit legislation be passed.

What is it aiming to do?

The JobMaker Hiring Credit aims to support businesses creating jobs for young people. More specifically for those who are currently receiving other forms of Services Australia support eg. JobSeeker, Youth Allowance etc.

What’s on offer?

  • $200 per week for each additional eligible employee hired aged 16 to 29 years old; and
  • $100 per week for each additional eligible employee hired aged 30 to 35 years old.

New jobs created between 7 October 2020 and 6 October 2021 will attract the JobMaker Hiring Credit for up to 12 months.

Which employees will be eligible?

In order to be eligible, employees must:

  • Be aged 16 to 35 years old;
  • Have commenced their employment between 7 October 2020 and 6 October 2021;
  • Have been on income support payments (such as JobSeeker, Youth Allowance, or Parenting Payment) for at least one of the three months before they were hired; and
  • Be working at least 20 hours per week in their new role.

What employers are eligible?

Most businesses (with some exemptions) will be eligible for the subsidy however, there are a few criteria they must meet. In order to be eligible, employers must:

  • Hold an Australian business number (ABN);
  • Be up-to-date with their tax lodgment obligations;
  • Be registered for Pay As You Go (PAYG) withholding, and be reporting through Single Touch Payroll (STP);
  • Not be claiming JobKeeper at the same time they are claiming JobMaker;
  • Have kept proper records of the paid hours worked by the employee they are claiming the hiring credit for; and
  • Not be claiming any other wage subsidiary (such as Boosting Apprenticeship Commencements Wage Subsidy, or Supporting Apprentices and Trainees Subsidy) for that particular employee.

The Additionality Criteria. 

Remember, the aim of the JobMaker Hiring Credit is about job creation. As such the additionality criteria is all about adding headcount and not simply replacing staff.

Using the date 30 September 2020 as a base-line, there must be an increase in:

  • Total headcount (staff.)
  • Total payroll dollars compared to the 3 months prior to 30 September 2020.

Newly established businesses. 

Newly established business, including business with no employees at the reference date of 30 September 2020, may also be eligible.

How to apply. 

We are still awaiting for the legislation to pass and the specifics to be published. That being said, employers will likely be able to register for the scheme from 7 December  2020 via the ATO website.

All new jobs created from 7 October 2020 to 6 October 2021 will be eligible.

Want to know more?

Please refer to our website for additional articles on this subject and other stimulus package opportunities for businesses.

Have you recently employed someone or are you looking to take on new staff?

DFK Gooding Partners and GPHR are ready and willing to assist you in meeting the above requirements and assessing eligibility. We can help you put your business in the best position possible to access this hiring credit.