JobMaker Hiring Credit - Am I eligible?

Oct 7, 2020

The government has announced a new wage subsidy called the JobMaker Hiring Credit. It pays an amount of up to $10,400 to employers who employ eligible young people.

Eligible employers who can demonstrate that the new employee will increase the overall employee headcount (compared to 30 September 2020) and will increase the overall payroll (based on the September 2020 quarter) will receive $200 per week ($10,400 pa) if they hire an eligible employee aged 16 to 29 years or $100 per week ($5,200 pa) if they hire an employee aged 30 to 35 years.

Eligible employees must:

  • have received JobSeeker, Youth Allowance (Other) or Parenting payment for at least one of the previous three months at the time of hiring
  • have worked for a minimum of 20 hours per week averaged over a quarter

New jobs created between 7 October 2020 and 6 October 2021 can attract the JobMaker Hiring Credit for up to 12 months from the date the new position is created.

Newly established businesses and businesses with no employees at 30 September 2020 are able to claim the JobMaker Hiring Credit where they meet the criteria but will not be eligible to claim for their first employee. All subsequent hires may be eligible.

Ineligible employers/employees include:

  • An employer who is claiming JobKeeper. Employers who were claiming for the first phase of JobKeeper but were not eligible for an extension after the 27th of September are eligible for the JobMaker Hiring Credit scheme. Employers eligible for the first extension of JobKeeper (28/9 to 3/1) will become eligible for the JobMaker scheme for the 7 January 2021 to 6 April 2021 reporting period.
  • An employer receiving other wage subsidies such as the Apprentices wage subsidy cannot access this scheme for the same employee.
  • An employee already claiming the JobMaker Hiring Credit from one employer who they are still employed by is not eligible to be claimed for another employer.
  • An employee who is a "non-arms length" employee is ineligible. This includes family members of a family business, and directors and shareholders of a company.

Registration can occur through ATO Online Services at any time before a claim is made and wont be available until the 7th of December 2020. Eligible employees will need to complete a nomination form.

The Credit will be claimed quarterly in arrears by the employer from 1 February 2021. Employers will need to report that they meet the criteria each quarter. Claims must be made within three months following the opening of the claim period.

The amount of the hiring credit cannot exceed the amount of the increase in payroll for the reporting period.