The rising cost of hiring and paying employees is putting pressure on Australian businesses across industries but there are ways to reduce the strain.

Another area you can explore as a business owner is wage subsidies.

Here is a look at how wage subsidies work and some of your options for 2023 and 2024.

How wage subsidies work in Australia

Wage subsidies of up to $10,000 may be available when your business hires an eligible worker for an ongoing position in a full-time, part-time or casual capacity, or in an apprenticeship or traineeship position. The subsidy can be used to cover initial hiring costs and to ensure the success of their employment.

Some of the providers that can help you fill a subsidised role are Workforce Australia, ParentsNext or Transition to Work. You will need to enter into an agreement with them as part of the process.

To be eligible, your organisation needs to:

• have a valid Australian Business Number
• have an account registered with Workforce Australia Online for Businesses
• have not previously received a wage subsidy for the same job
• have not recently retrenched or reduced the number of workers, or be proposing to do so
• not receive another government wage subsidy for the same worker or position.

The Department of Employment and Workforce Relations shares that your business can’t access a wage subsidy if you are receiving other government funds for the same position. In addition to this, wage subsidy cannot be applied if you hire a family member, and the employee must not work on a commission-based, self-employment or subcontracted position.

Wage subsidy programs in Australia

Wage Subsidy Scheme & Employment Assistance Fund

The Wage Subsidy Scheme provides funding of up to $1650 when your business hires a job seeker who is registered with a Disability Employment Service Provider. You may also be able to access the Employment Assistance Fund, which provides workers with a disability with funding for workplace modifications, equipment or services they need to perform their job

Apprentice Wage Subsidies

The financial assistance you gain through Apprentice Wage Subsidies and Hiring Incentives is designed to help you hire, train and retain apprentices. These incentives offer employers of an Australian Apprentice:

• wage subsidies for priority occupations
• a hiring incentive for other occupations not on the Australian Apprenticeships Priority List.

Priority occupations include:

• Aged care
• Agriculture
• Automotive electricians
• Data and communications cablers
• Fitters
• Glaziers, and more.

You can download the full list of priority occupations here.

Wage Start

Wage Start provides up to $6,000 (inclusive of GST) for jobs of at least 15 hours per week, over 26 weeks.

This financial incentive is designed to encourage employers to hire eligible jobseekers who are long-term unemployed or who have been offered ongoing employment after completing a Youth PaTH internship.

Wage Start subsidies have a limited number of placements per year.

Access a fact sheet here.

Restart

The Restart wage subsidy is a financial incentive of up to $10,000 (GST inclusive)

and is available to qualifying businesses that employ eligible job seekers who are 50 years of age or older.

Payments are available over a six-month period and employers can negotiate how often you receive payment. You can hire workers over 50 as apprentices or trainees. To be eligible, they must be registered with a Disability Employment Services provider, and other conditions do apply.

Access a fact sheet here.

It is important that you notify your accountant of any wage subsidies your business is taking advantage of to ensure they are reported correctly for tax purposes. Get in touch with AFS & Associates today.