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On 11 November 2020, the JobMaker Hiring Credit ("JobMaker") was passed.

JobMaker is an incentive for businesses to employ additional job seekers. Eligible employers will have access to JobMaker 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. The maximum amount will be $10,400 per new position created.

The scheme is administered by the ATO. The amount will be paid quarterly, with claims commencing in February 2021.

JobMaker credits

Credit amounts 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 JobMaker and JobKeeper or new Apprentice wage subsidy at the same time.

Eligibility criteria for employers

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).

Eligibility criteria for employees

Eligible employees must:

  • have worked a minimum of 20 hours per week over the quarter for the employer to qualify for the payment
  • be aged 16 to 35 years
  • be receiving income support payments (such as JobSeeker, Youth Allowance (Other), or Parenting Payment) for at least one of the three months before they were hired.

Other Government incentives

Wage subsidy for new apprentices

The government will provide a capped 50% wage subsidy to businesses who take on a new or recommencing Australian apprentice from 5 October to 30 September 2021.

It will be available to employers of any size or industry, Australia-wide- regardless of location or occupation.

The rules are:

  • it is limited to a total of 100,000 new apprentices or trainees
  • the 50% subsidy will be limited to $7,000 per quarter (i.e $28,000 per annum)
  • the Australian Apprentice or trainee is undertaking a Certificate II or higher qualification and has a training contract that is formally approved by the state training authority
  • no limit per employer.
An employer cannot claim new Apprentice wage subsidy and JobKeeper or JobMaker at the same time.

More information can be found on the Department of Education, Skills and Employment website

To apply for the subsidy, the form is available from your Australian Apprenticeship Support Network provider.

Newer: Tax Planning 2021
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