Businesses that are creating new positions and employing young Australians may be eligible for a new wage subsidy called the JobMaker Hiring Credit, paid by the ATO.
Employers that are increasing both their headcount and payroll can receive up to $10,400 per year for each new job they fill with an eligible employee aged 16 to 29 years, and $5200 for each eligible employee aged 30 to 35 years.
To be eligible new employees must:
- be 16 to 35 years old
- commence employment between October 7, 2020 and October 6, 2021
- work or be paid for an average of at least 20 paid hours per week during the reporting period, and
- have received the JobSeeker Payment, Parenting Payment or Youth Allowance (except if they are receiving the allowance because they are undertaking full-time study or are a new apprentice) for at least 28 consecutive days (or two fortnights) in the 84 days (or six fortnights) prior to starting employment.
Deputy Commissioner James O’Halloran said that employers do not need to satisfy a turnover test for their business and the three-step process to access the credit is straightforward.
“The first step for a business is to register. From here, the second step is to nominate their new employees and the third is to make a claim,” Mr O’Halloran said.
“I also encourage employers who need advice to contact their tax or BAS agent, or check out the resources available on our website.”
To find out more, go to www.ato.gov.au/jobmakerhiringcredit.