The 2020 Federal Budget announced the introduction of JobMaker Hiring Credit which could see your business receive up to $200 a week for hiring an unemployed young person. Should you be taking advantage of this potential win/win opportunity?
As youth unemployment rates have skyrocketed to 14.3% - more than double the general rate of unemployment, the JobMaker hiring credit is designed to assist in accelerating the rate of employment of young people as we recover from the impact of COVID-19.
The JobMaker Hiring Credit will be applicable to employers for each new job they create over the next 12 months, so long as businesses meet the eligibility criteria. Unfortunately, if your business is already claiming JobKeeper you will be ineligible for JobMaker.
To be eligible, both the business and the employee must meet a specific set of criteria.
To receive the JobMaker Hiring Credit, the employee first must be eligible, meaning that they are aged between 16 – 35 years old and have received government support in at least one of the previous three months from the start date of their new role. This includes Job Seeker, Youth Allowance and Parenting Payment.
Eligible Employers will be able to claim $200 per week for each additional eligible employee they hire aged between 16 – 29 years of age or $100 per week for each additional eligible employee aged 30 – 35 years of age.
For employers to be able to receive this credit they will need to hire an additional employee from the 7thof October 2020 onwards, and be able to prove an increase in the total employee headcount from the baseline date of 30thof September. The employer will also need to prove an increase in their payroll for the reporting period compared to the 3 months leading up to the 30thof September 2020.
The Hiring Credit will be claimed quarterly in arrears starting 1 February 2021 provided the business reports that they meet the eligibility criteria each quarter. The good news is employers will not be required to demonstrate a decrease in turnover as part of the eligibility test.
Registrations will be open through the ATO online services from the 7thof December 2020.
To find out all the details you can download a fact sheet from our website here.
Have more questions? Why not book a call with our inhouse expert Cameron Watson, Manager of Insurance & Wealth Management.