Who can apply for a wage subsidy?
You may be eligible for a government incentive to employ and retain a new employee for at least six months. Payments to eligible employers can be $10,000 (including GST) for six months, with payments made to you over a six-month period at intervals that you are free to negotiate. In some cases, wage subsidies can be up to $30,000 for 12 months.
If your answer to each of the following criteria is yes, you may be an eligible employer:
- you have an ABN (Australian Business Number)
- you haven’t previously received a financial incentive for the same person
- you are not an Australian, state or government agency
- you are offering a job opportunity that you expect to continue for an average 20 hours per week over the six months, and be ongoing
- you are offering a job that complies with employment standards, for example, it is suitable work and pays at least the national award wage.
In addition, you may be eligible for a wage subsidy agreement if you:
- hire a person for some paid work trials
- hire a person for an apprenticeship and traineeship
- hire a person who has completed the National Work Experience Programme.
There are exclusions, but they are few and reasonable. The job you offer must not:
- displace an existing employee
- be a commission-based, subcontracting or self-employment role
- be for an immediate family member.
If you have any questions or concerns about your eligibility as an employer for a wage subsidised employee, contact us today.
Eligibility for candidates
For an employer to receive a wage subsidy, the new employee must be registered for six months or more with one of the following:
- Transition to Work
- Disability Employment Services
- Community Development Programme.