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Financial Budget – incentives and tax cuts

The Federal Budget has a number of incentives in place for employers to encourage job growth. This update provides an overview of the two key incentives, as well as information around the income tax cuts that came into operation on the 13th of October 2020.

JobMaker Hiring Credit

  • From 7 October 2020, 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.
  • New jobs created until 6 October 2021 will attract the JobMaker Hiring Credit for up to 12 months from the date the new position is created.
  • To be eligible, the employee must have received the JobSeeker Payment, Youth Allowance (Other), or Parenting Payment for at least one of the previous three months at the time of hiring.
  • CLICK HERE for a detailed overview of the JobMaker Hiring Credit to see if your business is eligible.

Apprentice Wage Subsidy

  • If you engage an apprentice between 5 October 2020 and 30 September 2021 that is undertaking a certificate II (or higher) and has a training contract approved by the state training authority, then you may be eligible to receive a 50% wage subsidy for the apprentice, up to a maximum of $7000 per quarter.
  • CLICK HERE for an overview of the subsidy.
  • For further information related to this subsidy, you can contact an Australian Apprenticeship Support Network Provider. A full list is available here.

Income Tax cuts

From 1 July 2020:

  • the low income tax offset will increase from $445 to $700;
  • the top threshold of the 19 per cent tax bracket will increase from $37,000 to $45,000; and
  • the top threshold of the 32.5 per cent tax bracket will increase from $90,000 to $120,000.

The Government is also providing additional targeted support to low-and middle-income Australians.

In 2020‑21, low-and middle-income earners will receive a one-off additional benefit of up to $1,080 from the low and middle income tax offset (LMITO).

These changes have now passed parliament and will be effective for any payments made on or after 13 October 2020. The updated tax tables can be accessed here. The Government have stated that if you are unable to immediately implement these changes, you will have until 16 November 2020 to do so.

For more information on the above, please contact us on 1300 887 458 and speak with one  of our HR Consultants. If you are interested in learning more about our HR services, including HR OutsourcingHR ConsultingHR Advisory Services, contact us at