Login
iscover
The government’s JobMaker hiring credit scheme has now been referred to a Senate committee for inquiry.
JobMaker hiring credit set for Senate scrutiny
13 October 2020
•
6 minute read
The Senate economics legislation committee will now scrutinise the Economic Recovery Package (JobMaker Hiring Credit) Amendment Bill 2020, with a report due on 6 November.
The bill facilitates the government’s federal budget announcement of a hiring credit of up to $200 a week over the next 12 months in a bid to incentivise businesses to create new jobs for young people.
You’re out of free articles for this month
To continue reading the rest of this article, please log in.
Create free account to get unlimited news articles and more!
According to the government, eligible employers will be able to claim $200 a week for each additional eligible employee they hire aged 16 to 29 years old, and $100 a week for each additional eligible employee aged 30 to 35 years old.
The ATO is set to administer the scheme, with employers to claim the credits each quarter in arrears, with claims commencing in February 2021.
The measure includes tight eligibility conditions, including requiring employers to hold an ABN, be up to date with their tax lodgement obligations, be registered for PAYG withholding, and report through Single Touch Payroll.
Employers will also not be allowed to claim JobKeeper and the JobMaker hiring credit at the same time.
An additional criteria, which will require an increase in the business’s total employee headcount from the reference date of 30 September, will need to be met to ensure that businesses are creating new jobs instead of simply replacing existing employees.
Eligible employees will be required to have worked an average of at least 20 hours per week over the quarter for the employer to qualify for the payment.
They must also be in receipt of income support payments, such as the JobSeeker payment, Youth Allowance or Parenting Payment for at least one of the three months before they were hired.
You need to be a member to post comments. Become a member for free today!
