Australia markets open in 5 hours 30 minutes

    +102.10 (+1.47%)

    +0.0069 (+0.89%)
  • ASX 200

    +116.30 (+1.74%)
  • OIL

    -0.12 (-0.20%)
  • GOLD

    -1.10 (-0.06%)

    +6,628.73 (+11.78%)
  • CMC Crypto 200

    +50.16 (+5.40%)

$10,400 hiring payments for young people begin: Are you eligible?

Lucy Dean
·2-min read
Businesses can now claim thousands in JobMaker credits. Images: Getty
Businesses can now claim thousands in JobMaker credits. Images: Getty

Australian businesses have been reminded they can begin claiming JobMaker payments worth up to $10,400 a year, with the first tranche to flow from this month.

Eligible employers can claim payments of up to $10,400 a year for eligible employees aged 16 to 29 and up to $5,200 for those between 30 and 35, the Australian Tax Office confirmed in a statement on Tuesday.

That’s $200 a week for businesses hiring younger workers and $100 for businesses taking on older workers.

Businesses can begin claiming those payments in arrears every three months from 1 February 2021 for each eligible employee for up to 12 months.

How does JobMaker work?

The JobMaker Hiring Credit scheme began on 7 October 2020.

Employers are able to claim payments for eligible employees hired between 7 October 2020 and 6 October 2021.

That means that a business that hires an employee between those two dates can receive up to $200 a week for a year from the hiring date.

To be eligible, businesses need to have taken on employees who were receiving JobSeeker, the Parenting Payment or Youth Allowance in the three months before they were hired.

Businesses also can’t be claiming JobKeeper and must increase their headcount to claim the cash, to ensure businesses don’t replace current staff with cheaper labour.

ATO Deputy Commissioner James O’Halloran called on businesses to check their eligibility, and carry out the three steps to receiving the JobMaker Hiring Credit payments.

Eligible businesses need to register for JobMaker through the ATO online services, through a tax or BAS agent or the ATO business portal.

Then, they need to nominate their eligible employees by having their employees complete a JobMaker employee notice, update the payroll and supply the required information through the business’s Single Touch Payroll software.

Then, businesses can claim through ATO online services, their tax agent or the ATO’s business portal.

O’Halloran said the scheme will support both businesses and young Australians, who have been disproportionately impacted by the COVID-19 economic fallout.

“Helping young people who are unemployed secure jobs now will build their skills, improve their career prospects over their lifetime and support Australia’s economic recovery,” O’Halloran said.

“The ATO is here to support employers access the Government’s JobMaker Hiring Credit. If business owners need help, they should check out the range of resources available on our website, or speak to their registered tax or BAS agent.

“I encourage business owners to check their eligibility.”

Sign up to the six-week financial bootcamp challenge!
Sign up to the six-week financial bootcamp challenge!