The JobMaker Hiring Credit Scheme: What is it?

02 MAR 2021


What is JobMaker?

On 6 October 2020, the Federal Government announced the JobMaker Hiring Credit Scheme (known as ‘JobMaker’).

JobMaker operates as an incentive for businesses to employ younger job seekers. JobMaker helps eligible businesses cover the cost of hiring young people. Payments under the JobMaker scheme amount to:

  • $200 per week for each eligible additional employee aged 16–29 years old; and
  • $100 per week for each eligible additional employee aged 30–35 years old.

The JobMaker credits do not need to be passed onto employees (unlike JobKeeper payments).

To be able to claim JobMaker, there are employer and employee eligibility requirements – see below.

What are the employer eligibility requirements?

An employer may be eligible to claim JobMaker if it:

  • has an Australian Business Number (ABN);
  • is up-to-date with its tax lodgement obligations;
  • is registered for Pay As You Go (PAYG) withholding;
  • is reporting through Single Touch Payroll (STP);
  • meets the additional criteria (there must be an increase in the business’ total employee headcount);
  • is claiming in respect of an eligible employee; and
  • has kept adequate records of the paid hours worked by the employee that they are claiming the JobMaker credit for.

What are the employee eligibility requirements?

To be an eligible employee, the employee must:

  • be aged between 16 to 35 years at the time their employment started;
  • have worked or have been paid for at least 20 paid hours per week on average for the JobMaker period;
  • have commenced their employment between 7 October 2020 and 6 October 2021;
  • have received the JobSeeker Payment, Youth Allowance or Parenting Payment for at least 28 consecutive days within the 84 days prior to starting employment;
  • be in their first year of employment with the employer; and
  • be employed in the period that the employer is claiming for them.

How can my business register for JobMaker?

Eligible employers can register via the Australian Taxation Offices’ online services Business Portal.

Registrations for the JobMaker Hiring Credit Scheme opened on 6 December 2020. The JobMaker Scheme will end on 6 October 2022.

How can Marsdens help?

If you have questions about the JobMaker Hiring Credit Scheme and how it may be relevant to your business, please contact Aaran Johnson or Simon Kumar on 02 4626 5077 for an initial discussion.

The contents of this publication are for reference purposes only. This publication does not constitute legal advice and should not be relied upon as legal advice. Specific legal advice should always be sought separately before taking any action based on this publication.     

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