This proposal would allow companies with an annual turnover under $10 million to claim an additional tax deduction of 30 per cent for up to five new workers’ salaries for their first year of employment. Total additional deductions would be capped at $50,000 per company.

Companies would need to have been operating for a minimum of two years and register with the Australian Taxation Office (ATO) with evidence of their current full‐time‐equivalent payroll, and payroll for the 12 months prior to accessing the scheme. Once registered, the tax deductions would be processed as part of a company’s normal tax affairs.

To be eligible for the additional deduction, new employees need to be either:

• job seekers under the age of 25 who have been unemployed for three months or more  
• people returning to work after a period of parental leave or other caring responsibilities, and have been looking for work for three months or more
• people over the age of 55 who have been unemployed for three months or more.

The proposal would have effect from 1 July 2020.