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Claiming a Wage Subsidy for New Employees

Financial incentives of up to $10,000 for employers Claiming a Wage Subsidy for New Employees - Complete Accounting Services

What is a wage subsidy?

A wage subsidy is a financial incentive of up to $10,000 (GST inclusive) to help your business hire new staff.

Employment services providers will make the payments to you over six months and you can negotiate how often you receive them.

Talk to your employment services provider about a kickstart payment. You can receive 40 per cent of the total wage subsidy amount:

  1. four weeks after hiring a new employee,
  2. you meet all eligibility requirements
  3. and the job remains ongoing.

Indigenous Australians have immediate access to a wage subsidy, from commencement with an employment services provider, as long as all eligibility requirements are met.

What financial incentives are available?

  • Restart – up to $10,000 for employees 50 years of age and over.
  • Indigenous Australians – up to $10,000 on commencement with an employment services provider.
  • Youth Bonus – between $6,500 to $10,000 for employees 15 to 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 a minimum of 12 months.

All wage subsidies are GST inclusive.

Is my business eligible?

Your business is eligible for a wage subsidy if it:

  • has a valid Australian Business Number.
  • has not previously received a wage subsidy for the same employee.
  • is not an Australian, state or territory government agency.

What types of jobs can I offer?

Jobs can be full time, part time or casual. They need to be:

  • an average of 20 hours per week over the six month period of the wage subsidy agreement ongoing.
  • work that complies with employment standards for the position (for example is suitable work that pays as a minimum the national award wage).

Apprenticeships and traineeships are also eligible to attract a wage subsidy.

The job you offer cannot:

  • displace an existing employee
  • be commission based, subcontracting or self-employment
  • be work for an immediate family member.

Who can I hire?

Your new employee must be registered with either:

  • Jobactive
  • Transition to Work
  • ParentsNext (Intensive Stream only)
  • Disability Employment Services (Restart only), or
  • Community Development Programme (Restart only).

Restart only: If your new employee is not registered with an employment services provider then he/she must register with a Jobactive provider as a volunteer for you to get a wage subsidy.

Other requirements may apply based on individual circumstances. Your employment services provider will check these requirements before recommending a candidate – all at no cost to you.

How does your business manage a wage subsidy?

You can sign and manage agreements online or through the free Jobactive Employer App available from iTunes and Google Play.

You can claim payments online and the payments (including the kickstart option) go directly into your nominated bank account.

How does your business apply?

Contact your employment services provider to arrange for a wage subsidy agreement within 12 weeks (84 days) of your new employee’s start date to apply for a wage subsidy.

Find Out More:

The Australian Government has a fact sheet available which you can download from here.

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