Exposure draft of rules for JobMaker Hiring Credit measure

An exposure draft has been released of the rules for the JobMaker Hiring Credit scheme as announced in the Federal Budget. The JobMaker Hiring Credit will be available to eligible employers over 12 months from 7 October 2020 for each additional new job they create for an eligible employee, with a maximum amount of $10,400 per additional new position created.

Eligible employers who can demonstrate that the new employee will increase overall employee headcount and payroll will receive $200 per week if they hire an eligible employee aged 16 to 29 years, or $100 per week if they hire an eligible employee aged 30 to 35 years. The JobMaker Hiring Credit will be available from the date of employment of the eligible employee up to the maximum amount.

To be eligible, the employee will need to have worked for a minimum of 20 hours per week, averaged over a quarter, and received the JobSeeker Payment, Youth Allowance (other) or Parenting Payment for at least one month out of the three months prior to when they are hired.

Employers must also meet a number of eligibility conditions, including being registered for pay-as-you-go (PAYG) withholding, hold an Australian business number (ABN), and be up to date with their tax lodgment obligations.

The explanatory memorandum also notes that the Commissioner of Taxation will “specify that the information that must be provided in relation to an entity’s entitlement is to be provided through the Single Touch Payroll reporting regime”. This of course will mean that entities must be enrolled for STP in order to qualify for the JobMaker scheme.

Treasury is seeking submissions on the exposure draft of the JobMaker Hiring Credit rules. These are due by 27 November.

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