There are almost 360,000 fewer jobs in Australia when compared to the number of jobs that existed 12 months ago. Currently over 900,000 Australians are still looking for work. Over 1.5 million Australians are still on JobSeeker and the majority of these people are under the age of 35.
The Australian Government has introduced a new scheme called “JobMaker” with an ambition to get more young Australians back into the workforce. JobMaker offers an incentive to encourage employers to hire new employees aged between 16 and 35. There is a huge focus on getting this age group back into the workforce as they were the age group that lost the highest number of working hours on average during the peak of the covid-19 pandemic in Australia.
Employers could be eligible for potentially up to $10,400 over a 12-month period for each new employee they hire aged between 16 and 29. Employers could also receive $5,200 for each new employee they hire aged between 30 and 35. The scheme commenced on 7th October 2020 and will conclude on 6th October 2021.
To be eligible for JobMaker a new employee must have received JobSeeker Payment, Parenting Payment or Youth Allowance for at least two fortnights within the last six fortnights. Evidence of these payments must be provided by supplying a statement from their Centrelink payment summary or bank account statement.
JobMaker will make it easier for recent university graduates to find employment in a post-covid world. Hiring a young person who has grown up age in the age of social media will also be a huge advantage for businesses that are wanting to improve their online presence and build more meaningful relationships with their customers via social media.
Having a strong presence on social media makes it easier for customers to keep up to date with a business’s latest products and services. It has been reported that customers are 64% likely to trust a brand if it interacts positively on social media. Hiring a young Australian to take control of your social media platforms can lessen the workload on older employers who aren’t tech-savvy.
Building meaningful connections with your customers online can play a crucial role in driving sales for small businesses in industries that are highly competitive such as; cafes and boutique clothing stores. Young people also have more disposable income as the majority of young Australians are putting off having children and getting married until a later age when compared to previous generations. Hiring people who have more access to disposable income stimulates the economy and keeps more people in jobs in all age groups.
The treasury estimates that JobMaker will create an excess of 450,000 jobs over the next 12 months. To be eligible to receive JobMaker the new employee must work a minimum of 20 hours a week on average during the 12-month period of which they are employed as part of the JobMaker cycle.
For employers wanting to hire new staff under the JobMaker scheme it is important to note that an employer is unable to hire a family member via JobMaker. They are also unable to hire a spouse of a family member or hire partners of a partnership. JobMaker is also ineligible for directors or shareholders who are associated with the business that intends to hire new employees. If an employee is set to turn 36 before the end of 2021 they are still eligible for JobMaker if the date that they are hired is before the date of their 36th birthday.
The team at C&D Restructure and Taxation Advisory are here to help. As part of the Vault Group we can offer the full suite of financial products and advice to help you navigate the business landscape. Schedule a meeting here via calendy or give us a call on 07 36086800.
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