What does the ‘JobMaker’ Plan mean for you and your business?

What does the ‘JobMaker’ Plan mean for you and your business?

As part of the 2020-2021 Budget, the government has announced new incentives to assist economic recovery and to bring Australians back to work.

The ‘JobMaker Hiring Credit’ will give businesses incentives to take on additional young job seekers. For businesses wishing to expand/ grow their business, the government has created an initiative which provides financial benefits to the employer which pays a maximum benefit of $200 per week, capped at $10,400 for each new position.

The benefit will be paid based on the below conditions:

  • Any New and additional job from initiating from 7 October 2020 – 6 October 2021.
  • Where the new employee is aged between 16-29 years of age, the employer will receive $200.00 per week; and
  • Where the new employee is aged between 30-35 years of age, the employer will receive $100.00 per week.

This can be claimed quarterly in arrears from the ATO as of 1 February 2021.

To be eligible, both the employer and employee have eligibility criteria to which they must meet, they are as follows:

Employer’s Eligibility Criteria:

  • Must prove that there is an actual increase in the total employee headcount, and payroll expenses;
  • Must be registered for PAYG Withholding;
  • Must report the wages through Single Touch Payroll (STP);
  • Do not have to satisfy any fall in turnover tests; and
  • Must not be claiming the JobKeeper payments.

Employee’s Eligible Criteria:

  • Must have worked at least 20 hours per week, averaged over a quarter;
  • Must have received the JobSeeker payment, Youth Allowance or Parenting payment for at least 1 out of 3 months before they were hired.

JobMaker: Apprenticeship Wage Subsidy

Hiring apprentices has just become even easier with the jobmaker initiative, where any size businesses will be able to claim a 50% wage subsidy per apprentice, with a cap of $7,000 per quarter. This applies to commencing apprentices and trainees, including those working for Group Training Organisations until 30 September 2021.

Existing workers embarking on a new apprenticeship will also be included in this initiative to support the education of the Australian workforce.

Should you have any questions or a newly established business wish to claim JobMaker, please contact one of our professional staff on 9951 5400 or mail@wwnsw.com.au