JobMaker Scheme explained.
JobMaker Scheme is being Introduced.
As part of the 2020-21 Budget, the Government announced a new incentive for businesses to employ additional young job seekers called the JobMaker Scheme.
Basically, an employer that creates additional employment for individuals aged 16 to 35 years during the first 12 months of the jobmaker scheme can be entitled to a jobmaker hiring credit payment in respect of the individuals’ first 12 months of employment with the employer.
A JobMaker Hiring Credit will be paid quarterly in arrears from the ATO, and amounts to:
- $200 per week for each eligible employee aged 16 to 29; and
- $100 per week for each eligible employee aged 30 to 35.
To be eligible, employers must:
- hold an Australian Business number (ABN)
- be up-to-date with their tax lodgement obligations
- be registered for Pay As You Go (PAYG) withholding
- be reporting through Single touch payroll (STP)
To be eligible, the employee will need to have worked for a minimum of 20 hours per week, averaged over a quarter.
For the employer to be eligible, new employees must:
- be aged 16 to 35 years
- be in receipt of income support payments (such as JobSeeker Payment, Youth Allowance (Other), or Parenting Payment) for at least one of the three months before they were hired (assessed at the time of employment).
The JobMaker scheme commences on 7 October 2020 and ends on 6 October 2022. Further eligibility conditions will apply to employers based on the employer’s headcount and payroll on 30 September 2020. These conditions ensure that employers claim credits for additional jobs created rather than for replacing existing employees.