JobMaker Hiring Credit payment legislation introduced

Legislation to facilitate payments relating to the JobMaker Hiring Credit scheme has been introduced, called the Economic Recovery Package (JobMaker Hiring Credit) Amendment Bill 2020.

The bill amends existing legislation that will allow the Treasurer to make rules for an additional kind of COVID-19 economic response payments, and to facilitate payments in relation to the JobMaker Hiring Credit scheme that was announced in the Federal Budget.

Schedule 1 to the bill amends the Act to allow the Treasurer to make rules for a kind of Coronavirus economic response payment that is primarily intended to improve the prospects of individuals getting employment or increase workforce participation.

Such payments must be in relation to a relevant period that occurs from 7 October 2020 to 6 October 2022.

Just to re-cap, the new JobMaker Hiring Credit scheme is available to employers from 7 October 2020 for each new job they create over the next 12 months for which they hire an eligible young person. For each eligible employee, employers will receive, for up to 12 months:

  • $200 a week if they hire an eligible young person aged 16 to 29 years; or
  • $100 a week if they hire an eligible young person aged 30 to 35 years.

Eligible young job seekers will have received JobSeeker Payment, Youth Allowance (other) or Parenting Payment for at least one of the previous three months at the time of hiring.

Employers must demonstrate that they have increased their overall employment to receive this payment for up to 12 months for each position created. To claim the JobMaker Hiring Credit, employers need to report their employees’ payroll information to the ATO through Single Touch Payroll.

The amendments do not affect the prescribed period for the JobKeeper scheme or the rules which provide for that scheme in accordance with subsection 7(1). The JobKeeper scheme cannot be extended beyond 28 March 2021 without further amendments by Parliament.

The amendments extend the circumstances in which the rules can make provision for payments that are authorised by legislation to facilitate the JobMaker scheme.

They achieve this by introducing a new provision that authorises payments by the Commonwealth to an entity in respect of a time that occurs in the ‘relevant period’. Such payments must be for the primary purpose of:

  • Improving the prospects of individuals getting employment in Australia
  • Increasing workforce participation in Australia.

Subsequent rules will be made by the Treasurer to establish the JobMaker Hiring Credit scheme, including setting out:

  • Which employers qualify for the payment
  • The employees to which payments relate
  • The amount payable and timing of payments
  • The obligations for recipients of the payment.

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