The increase in the Super Guarantee (SGC) rate from 9.5% to 10% is just around the corner, commencing 1 July 2021. With this upcoming change, both... Read more
JobMaker Hiring Credit
To help accelerate growth in employment during the COVID-19 recovery, the government is offering businesses up to $200 per week to hire young Australians between the ages of 16 and 35.
Eligible employers will be able to apply for the JobMaker Hiring Credit over the next 12 months starting from 7 October 2020. Once a new job is created, the scheme will apply for up to 12 months following the date that the new position is created. This allows for a maximum of $10,400 to be claimed per each new position created.
The scheme will be administered by the ATO and claims will be made quarterly commencing in February 2021. Further information on the claim lodgement process will be released in due course.
The JobMaker Hiring Credit will be:
- $200 per week for eligible employees aged 16 to 29
- $100 per week for eligible employees aged 30 to 35.
For employees to be eligible, they will need to:
- Work for an average of at least 20 hours per week that they work across each quarter.
- Have received income support payments such as JobSeeker, Youth Allowance (Other), or Parenting Payment for at least one of the three months prior to being hired.
To be eligible, employers must:
- Hold an ABN
- Be up to date with their tax lodgement obligations
- Be registered for PAYG Withholding
- Be reporting through Single Touch Payroll
Employers will also need to demonstrate that the job is additional by reporting both:
- An increase in total employee headcount from the reference date of 30 September 2020; and
- An increase in payroll for the business for the reporting period compared to the three months to 30 September 2020
An employer will not be able to claim the JobMaker Hiring Credit in addition to other government wage subsidies such as JobKeeper or Boosting Apprenticeship Commencements.
Further information on the JobMaker Hiring Credit is available on the JobMaker Hiring Credit Factsheet
Boosting Apprenticeship Commencements
From 5 October 2020 to 30 September 2021, businesses of any size can claim the new Boosting Apprenticeship Commencements wage subsidy for new apprentices or trainees who commence work during this period. Eligible businesses will be reimbursed up to 50% of an apprentice or trainee’s wages worth up to a maximum of $7,000 per quarter. The scheme will be capped at 100,000 places.
Who is Eligible?
Your business or Group Training Organisation may be eligible if:
- You engage an Australian Apprentice or Trainee between 5 October 2020 and 30 September 2021, and
- Your Australian Apprentice or trainee is undertaking a Certificate II or higher qualification, and has a training contract that is formally approved by the state training authority
When will the subsidy be available?
The following table explains when eligible employers will be able to submit a claim for the Boosting Apprenticeship Commencements payments in arrears:
Date Claims Open
1 January 2021
5 October 2020 to 31 December 2020
1 April 2021
1 January 2021 to 31 March 2021
1 July 2021
1 April 2021 to 30 June 2021
1 October 2021
1 July 2021 to 30 September 2021
Final claims for payment must be lodged by 31 December 2021.
How do employers register and apply for the subsidy?
Eligible employers can advise intent to claim the subsidy by using the Boosting Apprenticeship Commencements Registration Form during the sign up of a new apprentice. The form will be available from your Australian Apprenticeship Support Network Provider.
This wage subsidy for new apprentices is very similar to the existing $2.8 billion Supporting Apprentices and Trainees wage subsidy, which provides assistance in retaining existing apprentices. It is to be noted that only one of the apprentice wage subsidies or JobKeeper wage subsidy can be claimed per apprentice.
Tax and tax planning can be a complicated and evolving process – it’s important to have an accounting partner who knows the game, is across all legislation and understands your situation and what you want to achieve. If you would like to know more about our tax planning services and how you could reduce your tax exposure, please call our office on (08) 8172 1444 or email our friendly team.