Incentives to Create Jobs

Article by
Philip Martin
PMCA
December 2020

Job creation is at the top of the government’s to-do list. See what incentives are available to help you play your part.

6 minutes

While it will take the Australian economy years to recover from COVID-19, businesses have a chance to spring back more quickly.

Subdued wage growth, soaring consumer confidence and government programs are a recipe for business growth. If you’re looking to expand your workforce, now is the perfect time.

JobMaker deadline coming soon

If your business wants to take advantage of the first JobMaker Hiring Credit period, the final deadline is 6 January (although it’s possible the ATO will extend this deadline).

Make sure your business is eligible by reading our guide to JobMaker Hiring Credits, and get your paperwork ready.

Early in 2020, the federal government moved quickly to support businesses affected by COVID-19. In addition to increasing unemployment benefits via the JobSeeker program, the most important and impactful measure was the JobKeeper scheme, which allowed businesses to keep paying employees, even if shutdowns and lockdowns meant there was no work to be done.

JobKeeper success

In November 2020 the Reserve Bank of Australia released this striking analysis of the JobKeeper program:

“…one in five employees who received JobKeeper (and, thus, remained employed) would not have remained employed during this period had it not been for the JobKeeper Payment. Given that 3½ million individuals were receiving the payment over the period from April to July 2020, this implies that JobKeeper reduced total employment losses by at least 700,000 over the same period.”

At least 700,000 jobs saved. Pretty impressive, and clearly one of the reasons Australia has emerged so quickly from the technical recession we experienced mid-year.

Changes to JobKeeper eligibility means that fewer people are now claiming this benefit. Not all businesses will survive. So now the government is turning its attention to the emerging unemployment problem.

Improve skills, increase employment

Here are some of the ways the government is helping businesses of all sizes tackle the rise in unemployment:

JobMaker Hiring Credits

A 12 month hiring credit is available for jobs created between 7 October 2020 and 6 October 2021. Employers can receive $200 per week for eligible new employees aged between 16 and 29, and $100 per week for eligible employees aged between 30 to 35 years. Eligibility restrictions apply to the business and the employee. Learn more in our earlier article explaining the JobMaker Hiring Credit scheme.

Apprenticeship assistance

If you employ a new apprentice between 5 October 2020 and 30 September 2021, you could qualify for a subsidy of up to $7000. The subsidy is also payable if you keep an existing apprentice employed between 1 January 2020 and 31 March 2021. Eligibility requirements apply to the business and the apprentice.

If you have any questions, feel free to get in touch. We’re happy to help

The material and contents provided in this publication are informative in nature only.  It is not intended to be advice and you should not act specifically on the basis of this information alone.  If expert assistance is required, professional advice should be obtained. We are here to help, contact us today:

Philip Martin Chartered Accountant
Phone 1300 744 547 | Web pmca.com.au | Email philip@pmca.com.au
Level 9, 440 Collins Street, Melbourne, Vic 3000

There are also subsidies for businesses that take on apprentices in industries with skills shortages. This list currently includes carpenters, joiners, plumbers, hairdressers, plasterers, bakers and pastry cooks, vehicle painters, wall and floor tilers, arborists, bricklayers and stonemasons, and air-conditioning and refrigeration mechanics.

Download more details from Australian Apprenticeships (PDF).

State-based incentives

Depending on where you operate your business, there are a few state-based tax incentives for businesses to increase their workforce.

In Victoria, the New Jobs Tax Credit offers 10% back on every dollar of increased taxable payroll. NSW reduced payroll tax by 0.6%, and WA has an Employer Incentive Scheme with a base payment of $8,500 for employing apprentices.

It’s worth noting that federal incentives don’t overlap: your business can’t receive incentives for JobKeeper and JobMaker, or for JobMaker and an apprenticeship subsidy.

Subsidies are also available for specific industries and in some regions. Contact us for more information on how to build a stronger business.

Ready to get on top of your tax and accounting?

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How to customize formatting for each rich text

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If you haven’t already, your very next step is to talk to us at PMCA to make sure you’re getting the assistance you’re entitled to.

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

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What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

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link me.

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

link me.