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JobMaker Hiring Credit and wages declaration

On 6 October 2020 as part of the 2020–2021 Budget, the Australian Government announced a new incentive for businesses to employ additional young job seekers called the JobMaker Hiring Credit. Specific details about the JobMaker Hiring Credit can be found at the Australian Taxation Office (ATO) website.

Will JobMaker Hiring Credit payments be considered declarable wages under the Workers’ Compensation and Rehabilitation Act 2003 (the ‘Act’)?

Employers will still be required to declare ‘wages’ (as defined in the Act) that they pay to their employees regardless of the hiring credit payments they receive for their eligible employees. It is important to note that the full wage will need to be declared, not the difference between what the employer receives as a hiring credit and the wages they pay to their employee.

Example

From 7 October 2020, an employer received a hiring credit for Michelle who is a new employee. Michelle is 26 so the employer receives $200.00 per week. The employer pays Michelle her wage of $400.00 per week . The employer is required to declare $400.00 as this is considered wages under the Act.