October 7, 2020
|JobMaker Hiring Credit and Boosting Apprenticeship Commencements|
The Federal Budget was released Tuesday night with many measures much needed to stimulate the economy. Highlights include the JobMaker Hiring Credit and the Boosting Apprenticeship Wage Subsidy:
JobMaker Hiring Credit
For each new job created, an employer will be able to claim $200 a week for a new employee aged 16-29 years or $100 a week for a new employee aged 30-35 years. Credits can be claimed for up to 12 months from when the position is created.
Eligible employees will work at least 20 paid hours per week in the new role and have received an eligible Centrelink payment for at least one month within the past three months before being hired. Employees receiving JobKeeper or another wage subsidy under another Commonwealth program will be ineligible.
Employers will need to be able to demonstrate an increase in total employee headcount and increased payroll compared to the quarter ended September 2020.
The incentive commences today, with credits to be claimed quarterly in arrears. The first round of claims open 1 February 2021.
Boosting Apprenticeship Commencements wage subsidy
Eligible employers will be reimbursed up to 50 percent of wages for new or recommencing Australian apprentices or trainees engaged between 5 October 2020 to 30 September 2021. The subsidy is capped at $7,000 per quarter per each eligible apprentice and is limited to 100,000 places.
Payments can be claimed quarterly in arrears, with the first round of claims opening 1 January 2021.
Again, apprentices receiving JobKeeper or another wage subsidy under another Commonwealth program will be ineligible.
If you would like further information on these budget measures and eligibility, please do not hesitate to contact us.