Jobmaker hiring credit passes federal parliament

December 16, 2020
 
Jobmaker hiring credit
 

The government has announced JobMaker Hiring Credit as part of the 2020-21 budget, on 6 October 2020. The coalition adopted a federal budget for 2020 amid Australia’s first recession in nearly three decades. So how will this affect you?

Young Job Seekers Eligibility:  New JobMaker Hiring Loan is designed to encourage businesses to hire young Australians between the ages of 16 and 35 who are on JobSeeker. The employment must be commenced between 7 October 2020 and 6 October 2021.

The loan will be disbursed at $200 per week for employees under the age of 30 and $100 per week for those between the ages of 30 and 35, with new employees required to work at least 20 hours per week. At one time a person can apply for either JobKeeper or JobMaker Hiring Credit.

The Australian government is spending record amounts, but not everyone is a winner from the 2020 federal budget because the employers need to pass the eligibility criteria given below:

  • Australian Business Number (ABN) is required.
  • Keep yourself updated with the tax lodgement obligations.
  • Register on Pay As You Go (PAYG) withholding.
  • Single touch payroll (STP) reporting.

The employer has to keep the record of the paid work hours by the employee for which they are claiming hiring credit.

ATO will administer the JobMaker Hiring Credit and make the announcements about it. So far, ATO has announced that in addition to the claims beginning in February 2021, employers can register and claim on a quarterly basis.

The government has expedited the legislated cut in personal income tax, targeting it for 1st July 2021. ATO will offer a one-time benefit from low and medium-income tax compensation in 2020-21. You can hire a professional tax accountant in Melbourne to learn about the benefits you can earn through this expedition.

Employers must remember that during the recruitment of an employee all the standard provisions of anti-discrimination legislation must be applied. An individual’s age is a secured attribute under both federal and state anti-discrimination.