By Darren Williams

JobMaker Hiring Credit Scheme

The JobMaker Hiring Credit scheme provides eligible employers with a wages subsidy payment of up to $200 per week in respect for  each newly hired eligible employee. The payment amount varies depending on the age of the new employee as shown below:

Age of eligible employee
(at commencement of employment)
JobMaker Hiring Credit
16 to 29 years old$200 per week (the higher rate)
30-35 years old$100 per week (the lower rate)

To be eligible as an employer, you must carry on a business in Australia and

  • Have an ABN;
  • Be currently registered for PAYG Withholding
  • Currently have no outstanding income tax or GST returns for the past 2 financial years.

For your employees to be eligible they must have been employed between 7 October 2020 and before 7 October 20201 and

  • Be between the ages of 16 and 35.
  • Must be employed on either a full time, part-time or casual basis for at least 20 hrs per week
  • For at least 28 days in the 84 days prior to starting employment the employee was receiving a parenting payment, youth allowance or a Jobseeker payment

The employee must give notice to the employee they satisfy the age requirements, the pre employment requirement and they haven’t claimed this with any other employer.

The employer must also increase their employment levels and satisfy 2 levels including a Headcount increase and Payroll increase.

Headcount Increase

For your employee headcount to increase, in the relevant period the number of your employees at the end of the last day of the JobMaker period must exceed the businesses ‘baseline headcount’ for the period. This increase in employees in comparison to the baseline headcount is the ‘headcount increase amount’.

The headcount includes all employees — full-time, part-time, casual, fixed-term and non-fixed term, regardless of whether they are eligible for JobMaker.

Payroll Increase

The employer must have a ‘payroll increase’ for the period being:

  • Total payroll amount greater than baseline payroll amount

The total payroll amount is the sum of the payroll amounts for each of the entity’s employees for each pay cycle that ended during the JobMaker period. The baseline payroll amount is the sum of those amounts for a reference period that ended on or immediately before 6 October 2020

The excess of the total payroll amount over the baseline payroll amount is known as the payroll increase amount. Where a new business began after 6 October 2020, the baseline payroll amount will be zero.

Where the business only started employing employees part way through the three months up to 6 October 2020, the baseline payroll will simply include the payroll expenses. The fact that it was only part of a period does not require any adjustments to be made.

If the employer has lodged a claim for the period and the Commissioner is satisfied that the employer is entitled to the payment, the Commissioner must pay the entity as soon as is practicable.

Apprentice and Trainee Scheme

In a bid to boost Apprenticeships in the workforce, eligible employers who engage an apprentice after 5 October 2020 can apply for a wage subsidy of 50 per cent of the apprentice’s or trainee’s wage paid between from 5 October 2020 to 30 September 2021. This subsidy is paid up to a maximum cap of $7,000 per quarter.

Employers of any size including Group Training Organisations that re engage an eligible out of trade apprentice or trainee will also be eligible for the subsidy.

The below link provides the required details in employing a new apprentice.

If you believe you are eligible under both or either scheme please contact your BKM representative or ring the office on 03 9804 0411.