Institute of Certified Bookkeepers

Discover the benefits of hiring a job seeker.

Are you looking to expand your practice? There are a number of benefits associated with hiring a job seeker. Significant wage subsidies have been put in place to encourage greater employment.

Financial Incentives

What financial incentives are available?

Your business can get up to $10,000 (GST inclusive) when you hire a new employee who is either:

  • 15–24 years of age
  • an Indigenous Australian
  • 50 years of age and over

Your business can get up to $6,500 (GST inclusive) when you hire a new employee who is either:

  • 25–29 years of age
  • a principal carer parent
  • a person registered with an employment services provider for 12 months or more

Wage subsidies are paid by your employment services provider to your business over six months. You can set the payment schedule to suit your needs. Your provider can also discuss with you the option of a kickstart payment where you can get 40 per cent of the total wage subsidy amount four weeks after hiring a new employee.

Experienced Workers

Hire a mature age worker (50 years of age or over) and get a wage subsidy of up to $10,000 (GST inclusive). Wage subsides are paid to you over a six month period, and you can negotiate how often you get payments.

Young Job Seekers

Hire an eligible young job seeker (aged 15–29) and get a wage subsidy of up to $10,000 (GST inclusive). Wage subsides are paid to you over a six month period, and you can negotiate how often you get payments.

Indigenous Australians

Hire an eligible Indigenous job seeker and get a wage subsidy of up to $10,000. Wage subsides are paid to you over a six month period, and you can negotiate how often you get payments.

Principal Carer Parents

Hire an eligible job seeker who is a parent and get a wage subsidy of up to $6,500. Wage subsides are paid to you over a six month period, and you can negotiate how often you get payments.

Long-Term Unemployed

If you hire an eligible job seeker who has been unemployed for at least 12 months, you could receive a wage subsidy of up to $6,500. Wage subsides are paid to you over a six month period, and you can negotiate how often you get payments.

Eligibility

You can access a wage subsidy if:

  • you have an Australian Business number
  • you have not previously received a wage subsidy for the same person
  • you are not an Australian, state or territory government agency
  • the person you hire meets the eligibility requirements for the wage subsidy
  • the position you offer is expected to be ongoing and for 20 hours or more per week, averaged over the six months of the wage subsidy agreement
  • the work complies with employment standards for the position (for example, is suitable work and pays as a minimum the national award wage)

Wage Subsidies are available to eligible participants in jobactive, Transition to Work (TtW) and ParentsNext Intensive Stream. The Restart Wage Subsidy is also available to Participants in Disability Employment Services (DES) and the Community Development Programme (CDP).

All Wage Subsidy placements must average at least 20 hours per week over the 26 week wage subsidy period. Employment must also comply with National Employment Standards. Jobs can be full-time, part-time or casual. Apprenticeships and traineeships are also eligible for a wage subsidy, along with other financial incentives available to employers under the Australian Apprenticeships Incentives Program.

Paid work trials can form part of a wage subsidy agreement, excluding those funded by the Employment Fund. Employers who decide to hire an individual who has completed a National Work Experience Programme may also be eligible for a wage subsidy.

Note: Some jobs are not eligible for a wage subsidy, including work that displaces an existing employee, commission-based, subcontracting or self-employment positions, and work for an immediate family member.

Initial Payments

As noted, you may also be able to receive a ‘kickstart’ payment of up to 40 per cent of the total wage subsidy after four weeks of a job starting.

How can I apply?

Contact an employment services provider within 12 weeks (84 days) of your new employee's start date to apply for a wage subsidy. Search now to find your local provider, or call the Employer Hotline on 13 17 15. Call charges apply for calls to ‘13’ numbers from mobile phones.

How do I manage a wage subsidy?

A wage subsidy agreement consists of one head agreement with individual schedules attached for each new employee. Agreements are easily viewed and managed online or with the free jobactive Employer App available from iTunes and Google Play.

Further Information

Each wage subsidy is targeted to assist those who need it most. Please talk to your employment services provider to check eligibility.

You can find an employment services provider at jobsearch.gov.au/service-providers.
You can also call the Jobseeker Hotline on 13 62 68 or the National Customer Service Line on 1800 805 260.

References

  • 23rd October, 2018
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