Employer incentives – BAC and JobMaker Hiring Credit

HIA Industry Update for NHS
Approx read time: 3 minutes

HIA Industry Update – November 2020

As part of the 2020-2021 Budget, the Government recently announced two new incentives for businesses to encourage employment of additional young job seekers.

Boosting Apprenticeship Commencements

Employers will be eligible for a federal government subsidy of 50% of the wages for a new or recommencing apprentice or trainee. This applies for the period up to 30 September 2021. The subsidy is capped at a maximum of $7,000 per quarter.

The subsidy is available for wages paid from 5 October 2020 to 30 September 2021. There is no cap or restriction on the size of the employer; however, the subsidy is capped 100,000 places and is not available for any apprentice receiving any other form of Australian Government wage subsidies, e.g. Supporting Apprentices and Trainees (SAT) or JobKeeper.  If an employer is eligible for multiple subsides, the employer will need to choose which payment best supports their individual circumstances.

Payments will be made quarterly in arrears with first claims for the subsidy available from 1 January 2021. Final claims for payment must be made by 31 December 2021.

To register and apply for the subsidy, employers should advise of their intent to claim Boosting Apprenticeship Commencements using the Boosting Apprenticeship Commencements Register form during the sign up of a new Australian Apprentice. Alternatively contact HIA Apprentices

With the Federal Government announcing an extension of the Supporting Apprentices and Trainees (SAT) wage subsidy to cover 50 per cent of an apprentice or trainee wage, it is time to seriously consider taking on an HIA apprentice or trainee.

As we approach the end of 2020 and school leavers consider their future career and education options, the SAT extension provides a real incentive for businesses to provide a young person a rewarding career for life.

For those considering taking on a business trainee for the office or an apprentice onsite now is the time to contact the HIA Apprentice team on 1300 650 620 to discuss the cost-effective and low-maintenance benefits of partnering with HIA.

JobMaker Hiring Credit

Eligible employers will have access to a JobMaker Hiring Credit each new job they create over 12 months from 7 October 2020 and for which they hire an eligible employee. The maximum claim period is 12 months from their employment start date.

Employers will register with the Australian Taxation Office (ATO) and make claims on a quarterly basis with claims commencing in February 2021.

Employers should be aware the passing of the JobMaker Hiring Credit is subject to the passing of legislation and more information will be received as it becomes available.

The JobMaker Hiring Credit will be:

  • $200 per week for each eligible employee aged 16 to 29; or
  • $100 per week for each eligible employee aged 30 to 35.

An employer cannot claim the JobKeeper subsidy and the JobMaker Hiring Credit at the same time.

To be eligible, employers must:

  • Hold an Australian Business Number (ABN);
  • Be up-to-date with their tax lodgement obligations;
  • Be registered for Pay As You Go (PAYG) withholding;
  • Be reporting through single touch payroll (STP).

Eligible employees must have worked an average of at least 20 hours per week over the quarter for the employer to qualify for the payment. Employees that start and/or stop employment during a quarter must meet a similar test based on the length of time in employment.

For the employer to be eligible, new employees must:

  • be aged 16 to 35 years
  • be in receipt of income support payments (such as JobSeeker Payment, Youth Allowance (Other), or Parenting Payment) for at least one of the three months before they were hired.

HIA will provide further information on eligibility criteria and how employers can register for the JobMaker Hiring Credit as it becomes available. For further information visit www.hia.com.au or call HIA on 1300 650 620.

Craig Jennion
HIA Executive Director – Hunter