by Vanessa Sweeney, Practice Manager

There are a range of wage subsidies available to business to assist with the cost of hiring new employees.  With many businesses looking to hire new staff but still feeling the effects of the COVID-19 pandemic, any reduction in employment expenses can be helpful.  Some subsidies may only apply to certain employers and employees and all have strict criteria that must be met to ensure existing employees are not displaced or disadvantaged.  We can assist you to determine eligibility for these subsidies and in some cases apply on your behalf, please contact us if you have any queries or would like information specific to your business or circumstances. 

See below for information on some of the wage subsidies available:

Job Maker hiring credit – https://www.ato.gov.au/General/New-legislation/The-Australian-Government-s-economic-response-to-coronavirus/JobMaker-Hiring-Credit/

An incentive of up to $200 per week per employee for businesses to employ young job seekers aged 16-35 years old.  The Job Maker hiring credit applies to new employees hired between 7/10/20 and 6/10/21 who were receiving the JobSeeker payment, Parenting Payment or Youth Allowance in the period immediately prior to starting employment.  The employee must work at least 20 hours per week and must increase the employer’s headcount and payroll amount.  The employer must register with the ATO via Online Services, the Business Portal or via their BAS or tax agent before they can claim.  An employer cannot claim the Job Maker hiring credit and the Job Keeper payment for the same period.

Apprentices and Trainees - https://www.dese.gov.au/supporting-apprentices-and-trainees a subsidy of 50% of the apprentice or trainee’s wage from 1/7/20 to 31/3/21 for small and medium businesses who had an apprentice or trainee in place as at 1 July 2020.  Application is via an Australian Apprenticeship Support Network provider. https://www.australianapprenticeships.gov.au/search-aasn

Jobactive wage subsidies

There are a range of wage subsidies available via employment services providers for new employees registered with jobactive, Transition to Work, ParentsNext, Disability Employment Services or The Community Development Programme.  The job offered must be ongoing, average at least 20 hours per week and cannot displace an existing employee or be for an employer’s immediate family member.  If you need to find an employment services provider you can do so here https://jobsearch.gov.au/service-providers/

Restart –  A subsidy of up to $10,000 to hire workers aged 50 years and older.    

Indigenous Australians – up to $10,000 on commencement with an employment services provider

Youth Bonus – up to $10,000 for employees 15-24 years of age

Youth – up to $6,500 for employees 25-29 years of age

Parents – up to $6,500 for employees who are a principal carer parent

Long Term Unemployed – up to $6,500 for employees registered with an employment services provider for 12 months or more

This information is current at the time of publication 25/03/2021 and further updates may have occurred since that date.  Please contact us for the latest information.