Subscribe for the latest schemes on offer


Senate looks into JobMaker, tough eligibility criteria emerge

03 December 2020

While the tax bill sailed through Parliament just days after the Federal Budget, the JobMaker hiring credit scheme is not progressing as easily and has been referred to a Senate committee inquiry.

The committee is taking a closer look at the JobMaker Hiring Credit Amendment Bill 2020, with a report expected on 6 November.

Under the scheme, eligible employers would have access to $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.

The actual hiring credit would be claimed quarterly in arrears by the employer via the Australian Taxation Office (ATO) from 1 February 2021.

Aimed at giving businesses the incentives to take on additional young jobseekers, the scheme has faced some backlash, with critics arguing it discourages businesses from hiring people over 35.

The scheme does have strict criteria including being up to date with tax lodgement applications, being registered for PAYG withholding and reporting through single touch payroll.  The employee must also work a minimum of 20 hours per week and have been the recipient of the JobSeeker, Youth or Parenting Payment for at least a month out the three months prior to being employed.

Most importantly, employers are not able to claim JobKeeper at the same time.

Businesses will need to demonstrate an increase in their total employee headcount from the reference date of 30 September 2020, as well as in the payroll of the business for the reporting period, as compared to the three months to 30 September 2020

Despite the strict eligibility, Treasurer Frydenberg believes the scheme will help support 450,000 jobs.

If you’d like to speak to us about any initiatives that may be available to your business, click here!