Budget 2020: Job Making Hiring Credit

From 7 October 2020, eligible employers will be able to claim $200 a week for each additional employee they hire aged 16 to 29 and $100 a week for those aged 30 to 35.

New jobs created until 6 October 2021 will attract the jobmaker hiring credit for up to 12 months from the date the new position is created.

The JobMaker Hiring Credit is a new government incentive for businesses to employ additional young job seekers.

Eligible employers will have access to a JobMaker Hiring Credit for each new job they create over the 12 months from 7 October 2020, for which they hire an eligible employee, for a maximum claim period of 12 months from their employment start date.

How much is the credit?

The JobMaker Hiring Credit will be:

• $200 per week for each eligible employee aged 16 to 29
• $100 per week for each eligible employee aged 30 to 35.

An employer cannot claim JobKeeper and JobMaker Hiring Credit at the same time.

Is my business/employee eligible?

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).

Eligible employees must have worked an average of at least 20 hours per week over the quarter for the employer to qualify for the payment.

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.

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.