The 2015–16 Budget is part of the Commonwealth Government’s plan to build a strong, safe and prosperous future for all Australians.
In the first 18 months of the Government around a quarter of a million new jobs were created — but there is more work to do.
New measures will focus on making job seekers more employable, reducing the costs of taking on new staff, and bringing job seekers and employers together.
The Growing Jobs and Small Business package will assist employers to grow and to employ young job seekers, mature workers, parents and the long-term unemployed.
The Government is investing $6.8 billion to establish jobactive to improve the quality of services delivered to job seekers and employers.
This includes a $1.2 billion national wage subsidy pool to support employers and assist job seekers into work.
The Government will improve wage subsidy arrangements to create more opportunities for job seekers, especially those aged over 50 years and parents returning to the workforce.
From 1 November 2015, eligible employers will receive up to $6,500 if they hire an eligible young job seeker under 30 years of age, an Indigenous job seeker, a parent returning to the workforce, or a long-term unemployed job seeker, and up to $10,000 under the Restart programme for workers aged 50 or older.
Employers who hire an eligible job seeker will be able to receive a wage subsidy from the time they start in the job (currently employers are required to wait six months) and paid in fortnightly instalments.
These reforms will provide assistance to employers when they need it most by helping with the upfront costs of hiring and training new staff.
Large employers who take on 10 or more mature aged staff will also be able to negotiate the timing of payments to help meet the specific costs associated with hiring multiple staff, including lump-sum payments covering multiple employees. This enables large employers to meet up-front costs such as group training and induction programmes.
The Government will also increase current wage subsidies to encourage more employers to take on a new employee:
- From 13 May 2015, the Tasmanian Jobs Programme wage subsidy will increase from $3,250 to up to $6,500 over six months. Employers who currently have staff employed under the programme will also be eligible for the higher payments.
- From 1 November 2015, employers who hire a young job seeker under 30 who has been on income support for six months or more will be able to receive up to $6,500 over 12 months.
- From 1 November 2015, employers who hire a mature aged job seeker over 50 under the Restart programme will be able to receive up to $10,000 over 12 months.
From 1 November 2015, a wage subsidy for parents will be available to help them move from welfare to work. Employers who hire a parent who has been on income support for six months or more (and is the Principal Carer Parent) will be able to receive up to $6,500 over 12 months.
The Growing Jobs and Small Business package will assist job seekers to secure a job and employers to find the employees they need to grow their businesses.