Charities can reap the benefits of JobMaker
8 October 2020 at 7:57 am
The JobMaker hiring credit will be payable for up to 12 months and immediately available to employers who hire those on JobSeeker aged 16 to 35.
At the centre of the federal budget is a $4 billion JobMaker hiring credit that aims to give businesses incentives to take on additional young job seekers.
From Wednesday, eligible employers will be able to claim $200 a week for each additional eligible employee they hire aged 16 to 29 years old; and $100 a week for each additional eligible employee aged 30 to 35 years old.
It is expected that around 450,000 positions for young Australians will be supported through the JobMaker hiring credit at a cost of $4 billion from 2020-21 to 2022-23.
In his speech on Tuesday, Treasurer Josh Frydenberg said all businesses, other than the major banks, would be eligible. This includes charities.
The Treasury confirmed that if a charity meets the eligibility requirements, and the employee they hire meets the criteria, then a charity can receive the JobMaker hiring credit.
CCA CEO David Crosbie told Pro Bono News it was a good initiative.
“I think a lot of charities will appreciate the opportunity to put young people on and have their wage subsidised for 12 months,” he said.
“That is a good initiative and I am sure the sector is supportive of it. But my broader comment is that this budget is an opportunity missed.”
There are a number of conditions around the payment including that an employer will need to demonstrate an increase in overall employee headcount and payroll for each additional new position created, and they must not be receiving JobKeeper concurrently.
Social Ventures Australia (SVA) cautioned that while it was pleased with the announcement of wage subsidies for employers who hire young people under 35, it said the measure may not be sufficient to deliver the forecast 450,000 jobs.
It said that wage subsidies, including for young people, have been a long standing feature of the employment system but have not previously been able to deliver at the scale indicated here.
More information about the JobMaker hiring credit can be found in the factsheet.
