Along with the Cashflow Boost, JobKeeper program and Apprenticeship incentives introduced throughout COVID-19, the government also released another key element to their economic recovery plan late last year.
The JobMaker Hiring Credit scheme has been introduced to encourage businesses to create jobs and employ new staff and is available to employers for each new job they create over the coming 12 months, for which they hire an eligible young person aged between 16 and 35 years old.
Whilst recognising older Australians may have prior work experience that will assist in gaining employment, the rules contain a number of integrity measures, including rules to protect older employees from experiencing reduced hours or loss of employment in favour of new employees who are eligible under the JobMaker scheme.
As long as both the employer and employee meet the required eligibility requirements and integrity rules, a business could receive payments of up to $200 a week for each newly hired eligible employee, with the payments lasting up to 12 months from the date the new position was created. The rate of payment differs based on the age of new employees, with those aged between 30 - 36 receiving a lower credit of $100 per week.
Employers are paid their credit quarterly in arrears, with the first payments starting in February 2021, for new jobs created since October last year.
The government hopes this payment will continue to boost economic growth and expand the nation’s workforce, whilst also helping young people access job opportunities.
Clients in the primary production sector are missing labour help they had previously received in prior years due to the closure of Australia’s international border. Working holiday maker visa holders have traditionally provided the sector with short-term labour required due to the often-seasonal nature of the industry.
In an effort to bridge the gap, this hiring credit may entice employers to take on local resources to assist in attracting and training a new cross-section of the labour force. This may help provide support to some of the agri-sector who have previously relied heavily on the transient working holiday maker visa holders.
The scheme is extremely targeted and focused on new employment opportunities, particularly for those that lost employment as a result of COVID-19 and who have been relying on social security payments. It may, however, as explained above, provide some employers with an opportunity to invest in new staff, whilst receiving additional support from the government to do so.
The JobMaker scheme rules are very complex, and careful consideration and analysis is required to ensure the various eligibility and ongoing reporting requirements can be satisfied. Should you need any help with enrolment or deciding whether you are eligible for the payment, please contact your local RSM office.
HOW CAN RSM HELP?
Should you need any help with enrolment or deciding whether you are eligible for the payment, please contact your local RSM expert.