Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon. Josh Frydenberg MP)General outline and financial impact
Extending the operation of the Coronavirus Economic Response Package (Payments and Benefits) Act 2020
Schedule 1 to the Bill amends the Act to allow the Treasurer to make rules for a kind of Coronavirus economic response payment that is primarily intended to improve the prospects of individuals getting employment or increase workforce participation.
This amendment facilitates the JobMaker Hiring Credit scheme that was announced by the Government as part of the 2020-21 Budget. This scheme will operate until 6 October 2022.
Date of effect: The day after the Bill receives the Royal Assent.
Proposal announced: The Bill partially implements the JobMaker Hiring Credit measure from the 2020-21 Budget.
Financial impact: The JobMaker Hiring Credit measure is estimated to involve a cost of $4.0 billion over the 2020-21, 2021-22 and 2022-23 financial years.
Human rights implications: The Bill does not raise any human rights issue. See Statement of Compatibility with Human Rights - Chapter 2.
Compliance cost impact: An exemption from Regulation Impact Statement requirements was granted by the Prime Minister as there were urgent and unforeseen events.
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