On 6 October 2020, the government announced, as part of the 2020–21 Budget, the JobMaker Hiring Credit. The Economic Recovery Package (JobMaker Hiring Credit) Amendment Bill 2020 passed federal parliament on 11 November 2020 and received assent on 13 November 2020.
From 7 October 2020, eligible employers will be able to claim a credit for eligible employees in relation to particular jobs created in the 12 month period from 7 October 2020 to 6 October 2021. The credit can be claimed for the 12 months after the job is created provided the job is created in that 12 month period.
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.
The JobMaker Hiring Credit will be administered by the ATO. Keep up to date on announcements by the ATO in relation to the JobMaker Hiring Credit HERE. The ATO has so far announced that Employers will register with and make claims to the ATO quarterly, with claims commencing in February 2021.
As with the JobKeeper program, the JobMaker Hiring Credit will be subject to rules, the Treasury Department has released an exposure draft of the rules and is seeking submissions on the draft rules, that can be accessed HERE.
There is no fall in turnover test applicable to the JobMaker Hiring Credit however there are a number of eligibility and other requirements that apply.
One key eligibility requirement that might affect QHA members is that it appears that an employer cannot claim the JobMaker Hiring Credit if an employer is claiming the JobKeeper payment.
For more information on the eligibility requirements refer to the most recent fact sheet that can be found HERE.
Employer eligibility requirements include:
- have an Australian Business Number (ABN);
- are up to date with tax lodgement obligations;
- are registered for Pay As You Go (PAYG) withholding;
- are reporting through Single Touch Payroll (STP);
- meet the additionality criteria (an increase in headcount);
- are claiming in respect of an eligible employee; and
- have kept adequate records of the paid hours worked by the employee they are claiming the hiring credit in respect of.
Employee eligibility requirements includes:
- be aged between 16 to 35 years at the time their employment started;
- have worked at least 20 paid hours per week on average for the full weeks they were employed over the reporting period;
- commenced their employment between 7 October 2020 and 6 October 2021;
- have received the JobSeeker Payment, Youth Allowance (Other), or Parenting Payment for at least one month within the past three months before they were hired;
- be in their first year of employment with this employer, reflecting that the hiring credit is only available for 12 months for each additional job; and
- must be employed for the period that the employer is claiming for them.
Employers must keep in mind that the standard provisions in anti-discrimination legislation still apply in relation to the recruitment of staff, including the prohibition on unlawfully discriminating against a person based on their age. A person's age is a protected attribute under both state and federal anti-discrimination.
For more information on unlawful discrimination, click HERE to download a copy of the QHA fact sheet on this topic.
QHA members seeking more information or wishing to discuss a specific employment relations matter are encouraged to contact the Employment Relations Department for a confidential discussion by calling (07) 3221 6999 or emailing email@example.com.