Salary Subsidies to HelpYour Business Move Forward

‍Are you aware of the government subsidies currently available for staffing your business? Such subsidies can make extra staff a reality sooner and help you both drive growth while potentially even doing your bit for unemployment and the community at large depending on your needs.

Prior to June 2022, there was a more substantial wage subsidy on offer, but now that it’s lapsed, we’ll focus on the current scheme.We’ll briefly show you how to assess your business for eligibility, or, your eligibility as an individual looking for work, how to apply and how much is available.

We’ll begin by mentioning that the current subsidy is designed for people who have been looking for work and have been registered with an employment services provider for 12 months or more. Although this may seem limiting, don’t be disheartened… There are tens of thousands of unemployedAustralians out there with great skills, work ethic and the drive to learn and grow.

This leads us to the eligibility of a person looking for work…

Up to $10,000 (GST inclusive) is available for new employees who are:

• 15 to 24 years of age
• Indigenous Australians
• 50 years of age and over

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Up to $6,500 (GST inclusive) is available for new employees who are:

• 25 to 29 years of age
• parents
• registered with an employment services provider for 12 months or more

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The scheme is offered through a range of initiatives for eligible candidates, including Disability Employment Services (DES),ParentsNext, and job active.

Now, is your business eligible for a wage subsidy?

 Eligible businesses can receive payments over a six-month period from employment services providers, and employers can negotiate how often payments are made (weekly, fortnightly).

It should be noted that it’s worth discussing the subsidy with the employment agency you’re engaging first, as the decision to offer a wage subsidy is at the provider’s discretion.

Wage subsidy placements can include full-time, part-time and casual employment, as long as your employees in those positions meet the agreed hours per week as set out in the wage subsidy agreement. This is important; check the commitment required at the start as some subsidies are valid for workers averaging 20 hours per week while others might be for as little as 8hours per week or full timers up to 30 hours per week.

Successful employers may also be entitled to further funding for workplace modifications for new team members, but this again is a separate matter and can depend on the employment agency involved or the employee’s needs.

Now, to be eligible for a wage subsidy, your business must:

• Be registered with an Australian Business Number(ABN)
• Employ a person registered with an employment service
• Ensure the position offered provides ongoing employment, meeting the agreed hours in the wage subsidy (as above)
• Meet employment standards for the position such as ensuring the role offers suitable work and pays the minimum national award wage or relevant award

To be eligible for a wage subsidy, your business must not:

• Have had a wage subsidy for the same job seeker
• Be an Australian state or territory government agency such as Service NSW

Here’s the current information on the subsidies, brief eligibility criteria and payment amount under each category:

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‍Restart Program – up to $10,000

For people 50 years or older who have been receiving income support payments for six months or more.

Youth Wage Subsidy – up to $6,500

For people under 30 who have been receiving employment services from a provider continuously for at least six months

Youth Bonus Wage Subsidy – up to $10,000

For people between 15 & 24 who have been receiving employment services from a provider continuously for at least six months

Long Term Unemployed and Indigenous Wage Subsidy – up to$6,500

For people receiving employment services continuously for at least 12 months, or who are an Indigenous job seeker and have been receiving employment services continuously for at least six months

Parents Wage Subsidy – up to $6,500

For people receiving parenting payment or are on any income support payment if a principal carer of a child and have been receiving employment services continuously for at least six months.

People with Disability – up to $10,000

For people registered with a Disability Employment Services(DES) provider.

There’s plenty of other resources out there if you’re considering employing someone new and accessing a subsidy like these. Here’s some quick links: 

• Find an employment provider: https://jobsearch.gov.au/service-providers/

• Call the government’s Employer Hotline on 13 17 15.

• Read the “How To” guide for managing subsidies: https://jobsearch.gov.au/how-to-guide#wage-subsidies

• For almost everything else, including training and traineeships: https://jobactive.gov.au/

If you’d like advice on how a new employee or indeed a subsidy like the ones above could fit with your business strategy and tax situation, speak with the Attune team today. Call us on 1300 866 113 or send us an email to start the conversation.

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