Employers can now claim $10,400 for hiring young Aussies

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Employers are now able to make their first claims for the JobMaker program that opened this week.

The new scheme is part of the government's transition from JobKeeper and JobSeeker, putting the onus on employers to create new jobs with the incentive of a $100-200 a week payment per employee (dependent on age) hired under the scheme.

JobMaker targets unemployed young people aged between 16-29 or 30-35 who were receiving JobSeeker, Youth Allowance or Parenting Payments, for at least two of the past six fortnights prior to their hire.

jobmaker scheme employers paid 10400 to hire young aussies

The JobMaker payment is provided to employers at a rate of $200 per week for employees aged 16 to 29 years old, and $100 a week for those aged 30-35, based on their age when they started the job.

Employers can claim a credit for each eligible employee hired between October 7, 2020, and October 6, 2021.

Employees will still be paid their full wage by the businesses hiring them.

Registrations for the scheme opened on December 6 and will end on October 6 this year.

Employers only need to register once for the scheme but must be registered before they make a claim.

Unlike JobKeeper, where payments were passed onto the employee, with JobMaker employers receive the full payment. Businesses are ineligible for the new payment if they are already claiming government subsidies such as Restart, Youth Bonus, Youth, Parents or Long-term Unemployed Wage Subsidies, Supporting Apprentices and Trainees Wage, Australian Apprentice wage or Boosting the Apprenticeships Commencements Wage.

Employers receiving JobKeeper, which is due to end on March 28, cannot claim JobMaker for the same period.

To apply for JobMaker, employees will need to fill out a notice to declare their age meets the requirement, and that only one employer is receiving payment on their behalf.

Employees must work a minimum of 20 hours per week for employers to claim the credit.

Payments are made on a quarterly basis for each JobMaker period.

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Julia Newbould is the managing editor of Money magazine and is one of the hosts of the Friends With Money podcast. She was previously editor of Financial Planning and Super Review magazines; managing editor at InvestorInfo and at Morningstar Australia. Julia co-authored The Joy of Money, a book on women and personal finance. She holds a Bachelor of Economics from the University of Sydney where she serves on the alumni council.