How does JobMaker hiring credit work?

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. 

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

To be eligible, the employee must have received the JobSeeker Payment, Youth Allowance (Other), or Parenting Payment for at least 28 consecutive days within the 84 days prior to the start of employment but must not be receiving other wage subsidies such as apprenticeship funding.

Employees must work at least 20 paid hours a week on average and the credit can only be claimed by one employer for each eligible employee.

Unlike the Jobkeeper wage subsidy, which must be passed on to the employee regardless of their hours worked, the employer keeps the hiring credit and pays employees only for hours worked.

The JobMaker Hiring Credit will be claimed quarterly in arrears by the employer from the ATO from 1 February 2021, and employers will need to report information about their entitlement quarterly.

Call in at your local TaxAssist Accountants for help with any of the above.

Date published 7 Jan 2021 | Last updated 7 Jan 2021

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.