JobMaker Hiring Credit

The JobMaker Hiring credit is designed as an incentive for businesses to create new jobs for younger Australians who have been impacted by COVID-19.

What is JobMaker hiring credit?

The JobMaker Hiring Credit is a payment to eligible employers to encourage the creation of new jobs for young people aged 16-35 (based on age at the time employment commences). The credit will be paid for 12 months, for new jobs created where employment is commenced from 7 October 2020 through until 6 October 2021. For example, if an eligible employee commences a new role on 10 October 2021, the hiring credit will be paid in respect of that employee for 12 months from the employment commencement date (ie until 9 October 2022).

How much is the hiring credit?

The rate of hiring credit depends on the age of the employee as at the date employment is commenced (ignoring the impact of birthdays that occur after the commencement of employment). It will be paid at a rate of:

  • $200 per week for 16-29 year old employees, and
  • $100 per week for 30-35 year old employees.
  • The full hiring credit will be paid in respect of eligible employees, provided the increase in the business’ payroll is at least equal to the value of the hiring credits claimed in a reporting period.

How and when is the hiring credit paid?

The credit is paid quarterly in arrears. The first payment can be claimed from 1 February 2021 for the previous quarter (for new jobs created from 7 October 2020 to 6 January 2021 which is considered to be the first reporting period). The ATO will pay the credit directly to eligible employers. See below for more information about registration for the scheme and how to claim.

Who is an eligible employer?

To be eligible, the employer must:

  • have an Australian Business Number (ABN)
  • be up to date with tax lodgement
  • be registered for PAYG withholding
  • report through Single Touch Payroll, and
  • have records of paid hours worked by eligible employees.
  • In addition, the employer must be able to demonstrate that the role is an ‘additional’ role.

Ineligible employers

Although the scheme is quite broad and available to most employers, there are some businesses that are ineligible. This includes:

  • Commonwealth, state and local government agencies and any entities owned by these agencies
  • Sovereign entities (excluding Australian resident entities owned by Sovereign entities, provided other eligibility rules are met)
  • entities in liquidation, including those who have entered bankruptcy
  • employers claiming JobKeeper, and
  • employers subject to the major bank levy.

How is it determined that the job is an ‘additional job’ for eligibility?

As the JobMaker Hiring Credit is only available for additional jobs created from 7 October 2020, a baseline needs to be set in relation to employee headcount and payroll. Employers must be able to demonstrate that:

  • at least one additional employee has been hired since 7 October 2020 (the reference date), increasing the business’s total employee headcount since that time, and
  • there has been an increase in the payroll of the business during the reporting period, when compared to the three months up to 30 September 2020.

There are a number of requirements for an employee to be eligible to attract the JobMaker Hiring Credit. These are summarised in the table below.

Eligible employees

There are a number of requirements for an employee to be eligible to attract the JobMaker Hiring Credit. These are summarised in the table below.

Does the employee need to complete any paperwork?

An employer will need to ask eligible employees to complete a nomination form to declare that they meet the employee eligibility criteria. This includes a declaration that:

  • they are aged 16-35 at the time of employment commencing
  • they have been in receipt of Youth Allowance (Other), JobSeeker or Parenting Payment for at least one out of the three months prior to employment, and
  • a JobMaker Hiring Credit nomination form has not been filled in for any other employer.

More information: You can visit ato.gov.au to get the latest updates on how to register and apply for the JobMaker Hiring Credit. You can also find more information on treasury.gov.au, including a range of Fact Sheets.