Wage subsidies, as most Australians already know, are a financial incentive by the government. It is in place to encourage the hiring of eligible candidates in jobs under progress. It works by helping with the initial costs that come with hiring new employees.
It helps in building up a business. And gives the employer greater flexibility in terms of the hiring process and benefits the participants too.
Especially in the pandemic time, the significance of wage subsidies is non-negligible. The Australian government, as a boon to the employers, is planning to increase the amount offered.
So, from July 1, 2021, $ 10,000 is the wage subsidy to employment service providers. And it will be in effect till June 31st, 2021.
This amount is available for an employee that fulfills the following criteria:
- Between the ages of 15- 29.
- Indigenous Australians
- Age 50 and above.
- A parent
- A candidate who has registered with an employment provider for over 12 months.
Eligible businesses receive the payment from service providers over 6 months. Employers can choose how often the payments are made, whether weekly or every fortnight.
It is to support employers who enroll jobseekers that are on DES, which stands for Disability Employment Services. They can negotiate the subsidy with DES providers while hiring new employees.
However, the employer is obligated to agree to the terms stating the continuation of the arrangement. It will resume till the specified period to fulfill the requirement of the appropriate wage subsidy. All the payments are made only after the various criteria are met. And with sufficient proof pertaining to employment.
If need be, the employers can contact the DES providers to obtain information regarding the different requirements.
An employer can receive it if they fulfill the following criteria:
- They must be owners of an ABN.
- Have not been recipients of the wage subsidy previously for the same job/ person.
- Are not recipients of other government subsidies for the said job or person.
- No government agencies in the country are permitted to avail it.
Employees are expected to pay all deserving wages and other forms of entitlements for the employee as per the state laws. It includes payments like insurance costs, tax, work health and superannuation.
How can employees access it?
Employees have to negotiate the appropriate payment directly with DES providers. It must be in place before the new candidate commences their work.
The payment is fulfilled, only if the agreement stating the wage subsidy is signed.
It is paid to employers usually after the needed verification of said employment is provided. They also have to maintain all necessary documentation to uphold the specific wage subsidy agreement.
How much will be the payment?
It depends on the various programs and the amount agreed upon by both parties. It differs based on the individual conditions of the participants and employer needs. It is as follows: (All amounts are inclusive of GST and per week)
- The wage subsidy scheme:- offers around $ 1,650 for an 8 hours job, for 13 weeks.
- Wage start:- offers $6,000 for 15 hours – 26 weeks.
- Restart:- offers $ 10,000 for 20 horses – 26 weeks.
Although the maximum payment for restart wage is 10,000 dollars, this may be lower based on jobseekers with different work capacities, their tenure, and duration.
Do all occupations stand eligible for a wage subsidy?
No, not all occupations are eligible. It depends on the specific service provider whether or not the payment is appropriate.
They also have the power to determine what level of subsidy is necessary. In some cases, the employer may not be eligible for a subsidy.
The wage subsidy is a highly effective means to attract qualified candidates and lower hiring costs. It opens new doors to access talent and minimizes training costs.