Job Hiring Credit Scheme – now open.
JobMaker Hiring Credit Scheme
Registrations for the JobMaker Hiring Credit scheme are now open.
The scheme is administered by the Australian Taxation Office (ATO) and will apply to new hires for 12 months from 7th October 2020.
Note that new hires in this sense means an increase in the total employee headcount and overall payroll as compared to 30th September 2020. Thus situations where you are replacing one employee with another are not likely to qualify.
Employers will be able to access up to $200 per week for new employees aged 16 to 29 and $100 per week for new employees aged 30 to 35. This will be paid for 12 months after hiring.
The credit is paid every three months in arrears. The first claim period will open on 1st February 2021.
To be eligible the employee must:
- Work a minimum of 20 hours per week, averaged over a quarter
- Have received JobSeeker, Youth Allowance or Parenting Payment for at least one month out of the three months prior to which they are hired.
It should also be noted that:
- Employers cannot also be receiving JobKeeper payments at the same time
- Employers must be registered for PAYG withholding, hold an ABN and be up to date with their reporting obligations
- Employees related to the employer are not eligible
Registrations can be completed through ATO online services only. Unlike with the JobKeeper scheme there are no requirements to make minimum payments to employees or pass through the incentive to employees.
If you have any queries, please email: firstname.lastname@example.org or contact your Accountant directly via email and we will be in touch.
Patrick Rowan & Associates