JobMaker Hiring Credit legislation has passed
The Government has now passed legislation to establish the JobMaker Hiring Credit, which is part of the Government's economic response to the COVID-19 pandemic. The JobMaker Hiring Credit is specifically designed to encourage businesses to take on additional young employees and increase employment.
It does this by providing employers with a fixed amount, paid quarterly in arrears by the ATO, of:
- $200 per week for an eligible employee aged 16 to 29 years; and
- $100 per week for an eligible employee aged 30 to 35 years.
To be eligible, the employee must have been receiving JobSeeker Payment, Youth Allowance (Other) or Parenting Payment for at least one of the previous three months, assessed on the date of employment. Employees also need to have worked for a minimum of 20 hours per week of paid work to be eligible, averaged over a quarter, and can only be eligible with one employer at a time.
The hiring credit is not available to an employer who does not increase their headcount and payroll. Employers and employees will be prohibited from entering into contrived schemes (for example, by laying-off staff and re-hiring them) in order to gain access to or increase the amount payable.
Existing rights and safeguards for employees under the Fair Work Act will continue to apply, including protection from unfair dismissal and the full range of general protections.