The Government’s support with jobmaker, tax incentives and a predicted property boom, makes 2021 look healthy. According to SQM Research every capital city will experience strong property value increases in 2021. The Aussie dream of owning your own home has been kept alive thanks to the saviour of Government’s support. During the height of COVID-19 Jobkeeper, and Jobseeker and the bank’s offering of deferrals of home loan payments has allowed many Australians to retain their home ownership.
September Quarter encouraging for New Year!
As a result, September quarter saw strong consumer spending with a 3.3% increase. Many finance experts have labelled the government’s support and incentives as the Australian Miracle. Household spending has been our biggest contributor to the Australian economy. This is encouraging for our future despite the economy still down 3.8% for the year. But in comparison with the rest of the world we are doing well. Some countries like South Africa & the UK are down more than 9%.
Government’s Support with Jobmaker is a Business Bonus!
For business owners the Government’s support with Jobmaker should be embraced. Its aim is to assist business with youth employment subsidy. The government is subsidising wages for eligible employees from the age of 16 – 35 years old. The following are some details about the scheme and how it should work.
Government’s Support with Jobmaker – How it works
Government has been working to make the Jobmaker scheme as easy as possible for business. The first step is to check your eligibility to register for the Jobmaker Hiring Credit scheme. For eligibility check https://www.ato.gov.au/general/JobMaker-Hiring-Credit/Register-for-JobMaker-Hiring-Credit/
The subsidy is paid directly to employers not the employee. Eligible employers can access the payment up to 12 months for each eligible employee hired from anytime between 7th October 2020 till 6th October 2021.
The Subsidies are as follows:
- $200 per week for 16 – 29-year old’s
- $100 per week for 30 – 35-year old’s
This equates to $10,400 per annum for eligible 16 – 29-year old’s and up to $5,200 per annum for 30 – 35-year old’s.
To claim for the scheme, you must be registered. https://www.ato.gov.au/general/JobMaker-Hiring-Credit/Register-for-JobMaker-Hiring-Credit/. Registration is now available. Claims will commence in the first quarter in February 2021.
Employees must be eligible as well as employers. Employees need to be on a government benefit. Eligible benefits are Youth Allowance, Jobseeker or Parenting Payment. Employee must be on one of these benefits for a minimum of 28 consecutive days within 84 days of being hired. The following is a list of requirements of the employee:
- age between 16 – 35 years old
- must have been on eligible government payments
- Employees commencement between 7th October 2020 and 6th October 2021
- Employees need to do a minimum of 20 hours work per week
- Payment claims accepted till 6 October 2022
Registered Tax Agents, Accountants or the ATO helpline 132866 will be able to assist with more details.