What is a wage subsidy?
Through jobactive, wage subsidies are available to employers who hire eligible job seekers including mature age, long-term unemployed, Indigenous, youth, parents or Tasmanian residents.
A wage subsidy is a payment to encourage businesses to employ eligible job seekers. Wage subsidies can help employers to expand their business and employ new staff, which will help boost the economy and create more jobs.
Employers can receive up to $6,500 (GST inclusive) over 12 months if they employ eligible job seekers for at least 30 hours per week. Pro-rata payments starting from $3,250 (GST inclusive) are available for part-time work, between 15-29 hours per week. The amount will vary depending on the number of hours worked, but to receive a wage subsidy, the employee must work for a minimum of 15 hours per week.
Employers are able to negotiate flexible payment options with their employment services providers from the day the employee starts in the job. This means that wage subsidies will be paid flexibly to employers, as frequently as necessary, to meet the business needs of employers.
Employers receive payment for the actual hours worked by the employee. If the employment ceases early, employers will still be able to receive payment commensurate with the hours and duration of the employment.
What wage subsidies are available?
The following wage subsidies are available if you employ:
- a job seeker 50 years or over: up to $10,000 (GST inclusive) through the Restart programme
- a job seeker under 30 years of age: up to $6,500 (GST inclusive) through the Youth Wage Subsidy
- a job seeker who is a parent: up to $6,500 (GST inclusive) through the Parents Wage Subsidy
- a long-term unemployed job seeker (12 months) and an Indigenous job seeker (six months): up to $6,500 (GST inclusive) through the Long Term Unemployed and Indigenous Wage Subsidy
- a Tasmanian job seeker: up to $6,500 (GST inclusive) through the Tasmanian Jobs Programme.
Am I an eligible employer?
To be eligible for a wage subsidy, your business must:
- be a legal entity with an Australian Business Number
- have not previously received a wage subsidy of the same type for the same job seeker
- not be an Australian, State or Territory government agency.
What types of jobs can I offer?
You can access a wage subsidy if the position you offer an eligible job seeker:
- is for a minimum of 15 hours per week
- except for the Tasmanian Jobs Programme, where you can access a wage subsidy if the position is full-time in accordance with the relevant award classification, or a minimum of 25 hours per week if part-time
- is ongoing
- complies with minimum employment standards applicable to the position.
Apprenticeships and traineeships can also be eligible.
Some positions are not eligible for a wage subsidy, including:
- commission-based, subcontracting or self-employment positions
- work for an immediate family member
- work that displaces an existing employee.
Want to find out more or apply for a wage subsidy for one of your workers?
Call one of our Business Advisors on 1800 007 400 or complete the contact form on this page and we will contact you.