Over $10,000 on offer for new employees as part of JobMaker Hiring Credit scheme
The Australian Government is attempting to rectify the number of young people disproportionately affected by job losses as a result of COVID-19 by introducing payments of up to $10,400 over a year for each eligible additional employee hired by a business as part of the Government’s JobMaker Hiring Credit scheme.
Early childhood education and care (ECEC) businesses may be eligible for payments under the scheme, with employers able to access benefits for each eligible additional employee they hire between 7 October 2020 and 6 October 2021 of:
- up to $10,400 over a year for each one aged 16 to 29 years of age
- up to $5,200 over a year for each one aged 30 to 35 years of age.
Employers can begin claiming payments in arrears every three months from 1 February 2021 for up to 12 months for each additional eligible employee, ATO Deputy Commissioner James O’Halloran said.
“The ATO is here to support employers to access the Government’s JobMaker Hiring Credit. If business owners need help, they should check out the range of resources available on our website, or speak to their registered tax or BAS agent.”
Business owners, including those who employ individuals working in early childhood education and care (ECEC) can check their eligibility by visiting www.ato.gov.au/JobMakerHiringCredit, with the application process involving the following steps:
- register using ATO online services, Online services for business or the Business portal, or through a registered tax or BAS agent
- nominate their eligible new employees by having your employees complete a JobMaker employee notice, running payroll events and supplying the required additional information through their Single Touch Payroll enabled software
- claim using ATO online services, Online services for business or the Business portal, or through a registered tax or BAS agent.
Benefits for business are two-fold; not only will the business receive stimulus support in response to the COVID-19 pandemic, they will also support a young person’s career.
“Helping young people who are unemployed secure jobs now will build their skills, improve their career prospects over their lifetime and support Australia’s economic recovery,” Mr O’Halloran said.
A JobMaker Hiring Credit payment estimator has been created to support employers to learn more about how much they may receive, and can be accessed here.
Key dates to remember:
- The JobMaker Hiring Credit scheme started on 7 October 2020.
- Employers may be able to claim for employees hired between 7 October 2020 and 6 October 2021.
- Employers can register through ATO online services, Online services for business, the Business Portal or your registered tax or BAS agent.
- Claims for the first JobMaker period payment opened on 1 February 2021 and will close on 30 April 2021.
- The JobMaker Hiring Credit scheme will end on 6 October 2022.
More information on the JobMaker Hiring Credit scheme is available on the ATO website.