JobMaker – What you need to know
Dec 8, 2020 | For Business, For Individuals
The JobMaker program is designed to accelerate employment growth, with the Government providing $4 billion to encourage businesses to take on additional employees they may otherwise not have engaged, by providing a hiring credit to eligible employers.
The Department of Treasury sought consultation on the program, with final consultation closed as of 27 November.
Similar to JobKeeper, the legislative detail is quite broad with the Economic Recovery Package (JobMaker Hiring Credit) Amendment Bill 2020 providing for the Treasurer to make rules. As per JobKeeper (with consultation only just closing) we expect a number of changes to these rules.
From 7 October 2020, the JobMaker Hiring Credit offers a fixed amount, paid quarterly in arrears by the ATO, of:
- $200 per week for an eligible employee aged 16 to 29
- $100 per week for an eligible employee aged 30 to 35 years.
JobMaker periods are expected to run until 6 October 2022, however the maximum period that an employer can claim JobMaker for an eligible employee is up to 12 months. This allows an employer to claim JobMaker for a full 12 months where a new job is created, for example, on 6 October 2021.
As the aim of the scheme is to subsidise an increase in the number of employees, eligible employers must meet a number of other conditions, including headcount and payroll increases, to demonstrate they are creating new employment positions. For more information regarding employer requirements, please refer to the JobMaker Hiring Credit Factsheet.
If you would like assistance with formally reviewing your eligibility or making a claim under JobMaker, do not hesitate to contact the team at Nexis.