Employment Fund Wage Subsidy Guideline
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Explanatory Note
All capitalised terms have the same meaning as in the jobactive Deed 2015–2020. In this document, ‘must’
means that compliance is mandatory and ‘should’ means that compliance represents best practice and that
compliance is discretionary.
Disclaimer
This Guideline is not a stand-alone document and does not contain the entirety of Providers’ obligations.
It must be read in conjunction with the Deed and any relevant Guidelines or reference material issued by
Department of Employment under or in connection with the Deed.
Summary
This Guideline details the core elements and requirements for Providers in managing Wage Subsidies. This
document sets out the general rules that apply to all Wage Subsidies under the jobactive Deed 2015–2020 (the
Deed) as well as specific rules (where applicable) for individual Wage Subsidies.
Under the Deed, the Wage Subsidy Account, which forms part of the Employment Fund, will be accessible to
Providers to seek Reimbursement for:
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the Restart Programme
the Youth Wage Subsidy
the Long Term Unemployed (LTU) Wage Subsidy and
the Tasmanian Jobs Programme.
Information about the Employment Fund General Account is available in the Employment Fund General Account
Guideline.
Policy Intent
Wage Subsidies encourage Employers to hire job seekers in sustainable positions by contributing to the costs of
recruitment, including training and wages. Providers are expected to build strong relationships with Employers
and use Wage Subsidies to broker employment opportunities for eligible job seekers so that they can be
retained in sustainable employment.
Relevant Deed clause/s
Relevant clauses in the jobactive Deed 2015-2020 (the Deed) include:
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Annexure A1—Definitions
Annexure B1—Transition in
Annexure B2—Payments and Employment Fund credits
Section A3—Some basic rules about financial matters
Clause 76—Transition in
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Clause 80—Relocation of Stream Participant between Provider’s Sites
Clause 81—Transfer of stream Participants from the Provider
Clause 82—Transfer of Stream Participants to the Provider
Clause 88—Employment Fund
Clause 89—Wage Subsidies.
Relevant References
Reference documents relevant to this Guideline include:
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Learning Centre website
Documentary Evidence Guideline
Employment Fund General Account Guideline
Wage Subsidy information
Process
Details
Promotion and
management of Wage
Subsidies with
Employers
Providers must promote Wage Subsidies to job seekers and Employers in a targeted
and appropriate way to maximise employment opportunities corresponding with the
job seeker’s difficulties in finding a job in the labour market.
Deed clause references:
 Clause 89.1
Wage Subsidies must be negotiated and approved in line with the principles of:
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providing value for money
complying with any work, health and safety laws that may apply
withstanding public scrutiny and
not bringing Employment Provider Services or the Government into disrepute.
The Department may, at any time, instruct the Provider to modify or end a Wage
Subsidy Agreement if it finds that either party has not met the terms of the Deed,
Guidelines or the Wage Subsidy Agreement.
A number of communication resources to help Providers promote Wage Subsidies are
available through the Provider Portal and the Department’s website.
Participant eligibility
Specific Wage Subsidy Participant eligibility
Deed clause references:
 Clause 89.2
The four Wage Subsidies each have specific eligibility criteria to ensure that the
assistance is targeted. Providers must only enter into a Wage Subsidy Agreement and
pay Wage Subsidies for eligible job seekers. The Department’s IT Systems will help
determine a job seeker’s eligibility; however, the Provider will still be required to
determine general suitability in accordance with the Deed and Guidelines. If a
Provider believes that the Department’s IT Systems have incorrectly determined
eligibility, they should contact the Department either directly through a respective
mailbox or through the Account Manager or Contract Manager to discuss.
Eligibility requirements are detailed below based on the different categories of Wage
Subsidies.
Restart Programme
A job seeker is eligible for a Wage Subsidy under the Restart Programme if they:
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are 50 years of age or older and
have been continuously unemployed for the previous six months or more and
have been in receipt of any of the following income support payments for the
previous six months or more: Newstart Allowance, Parenting Payment,
Disability Support Pension, Bereavement Allowance, Widow Allowance, Carer
Payment, Special Benefit, Partner Service Pensioners, War Widow(er)
Pension, Age Pension, Mature Age Partner Allowance, Wife Pension and
Widow B Pension.
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Youth Wage Subsidy
A job seeker is eligible for a Youth Wage Subsidy if they are subject to the Stronger
Participation Incentives (SPI) for Job Seekers under 30 measure and from the end of
their first Work for the Dole Phase.
LTU Wage Subsidy
A job seeker is eligible for a LTU Wage Subsidy if they:
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are a Fully Eligible Participant
are not eligible for the Youth Wage Subsidy or Restart Programme
are registered with a Provider and have been registered with an employment
service provider (including a Provider, Job Services Australia, Disability
Employment Services or Remote Jobs and Community Programme provider)
continuously for at least the previous 12 months or, in the case of a job seeker
who is Aboriginal and Torres Strait Islander, for at least six months and
have been out of employment (that is, they have not had a job placement as
recorded in the Department’s IT Systems) for at least the previous 12 months
(or, in the case of a job seeker who is Aboriginal and Torres Strait Islander, for
at least six months).
Tasmanian Jobs Programme
A job seeker is eligible for a Wage Subsidy under the Tasmanian Jobs Programme if
they:
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are registered as a Fully Eligible Participant with a Provider
for at least the previous six months have been a resident in Tasmania and
receiving Newstart Allowance, Youth Allowance (Other) or Parenting
Payment and
have Mutual Obligation Requirements at the time they commence in a Wage
Subsidy Placement.
Family members
Except for job seekers who are eligible for a Wage Subsidy under the Tasmanian Jobs
Programme, Wage Subsidy Participants must not be immediate family members of
the Employer (that is, a spouse, de facto partner, child (biological or adopted), parent,
grandparent, grandchild or sibling).
Job seekers with a Partial Capacity to Work
A Partial Capacity to Work (PCW) job seeker must not be compelled to undertake
more than their PCW hours with intervention unless the job seeker chooses to do so.
The position must also take into account the job seeker’s Employment Services
Assessment. However, eligibility criteria for each of the Wage Subsidies still apply. For
example, a Restart placement would still need to be for a minimum of 15 hours per
week, regardless of any PCW. Additionally, a job seeker who has a PCW can only
participate in the Tasmanian Jobs Programme if they choose to undertake more than
their capacity and work full time.
Note: As job seekers assessed as having PCW are not in scope for the SPI measure,
they are not eligible for the Youth Wage Subsidy.
Placement Eligibility
General Wage Subsidy Placement eligibility
Deed clause reference:
 Clause 89.2
Across all four Wage Subsidies, a Wage Subsidy Placement must:
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be declared by the Employer (in the Wage Subsidy Agreement) as a
sustainable, ongoing position where the Employer knows of no reason why
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the job would not continue indefinitely
comply with minimum standards for Employment as established under
relevant Commonwealth (for example, Fair Work Act 2009), state or territory
law (including any award conditions applicable to the position)
be recorded by the Provider in the Department’s IT Systems
not be in pre-existing employment with the Employer
not displace an existing employee
not be a commission-based, self-employment or subcontracted position and
not otherwise be a Non-Payable Outcome as defined in the Deed.
Across all four Wage Subsidies, a Wage Subsidy Placement may:
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be an apprenticeship or traineeship and
be found by the Provider or directly by the job seeker.
Placement Types
Restart, Youth and LTU
For the Restart Programme, Youth Wage Subsidy and LTU Wage Subsidy, Wage
Subsidy Placements can be in full-time (30 hours or more) or part-time (15–29 hours)
positions paid on a pro-rata basis (see ‘Wage Subsidy Periods and instalment
amounts’ below). Positions under an average of at least 15 hours per week are not
permitted. Where the a Wage Subsidy Agreement has been entered into, the Wage
Subsidy is not payable where average hours over the Wage Subsidy Period fall below
15 hours per week.
Tasmanian Jobs Programme
For the Tasmanian Jobs Programme, Wage Subsidy Placements can only be in fulltime positions in accordance with the relevant award classification with reference to
the Fair Work Act 2009 and the National Employment Standards. A Tasmanian Jobs
Programme Placement must be located in Tasmania.
Work trials
Wage Subsidies can be used after a paid work trial has occurred. Paid work trials are
not considered pre-existing Employment.
Placement start dates
Placements for each of the Wage Subsidies must be after the following dates:
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Concurrency with other
Wage Subsidies and
funding sources
Restart Programme—from 1 July 2014
Tasmanian Jobs Programme—from 1 January 2014 (closed to new applicants
after 31 December 2015)
LTU Wage Subsidy—from 1 July 2015
Youth Wage Subsidy—from 1 July 2015.
Concurrency with other Wage Subsidies
Only one type of Wage Subsidy can be claimed in respect of a Wage Subsidy
Placement, except for the Tasmanian Jobs Programme, which can be used to
supplement other Wage Subsidies. The combined total of the Wage Subsidy must not
exceed 100 per cent of the job seeker’s wage).
Concurrent funding (other government sources)
Restart, Youth Wage Subsidy and LTU Wage Subsidy
For the Restart Programme, Youth Wage Subsidy, and LTU Wage Subsidy, Employers
must not access a Wage Subsidy if it receives a wage subsidy or similar funding from
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other government sources (for example, other Commonwealth, state or territory
government wage subsidy schemes).
Tasmanian Jobs Programme
Tasmanian Jobs Programme placements may receive other government funding
where the placement meets all eligibility criteria for the respective programmes as
detailed in the relevant programme Guidelines. The combined total of the Wage
Subsidy must not exceed 100 per cent of the job seeker’s wage.
Eligibility for Wage
Subsidy—Employer
Deed clause reference:
 Clause 89.2
General Wage Subsidy Employer eligibility
Across all four Wage Subsidies, Wage Subsidy Employers:
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must be a legal entity with an Australian Business Number (ABN)
must not be a Commonwealth or state/territory government agency (noting
this does not necessary exclude local councils if the Wage Subsidy Placement
is not directly funded by the state/territory government)
can be a Related Entity of the Provider but must not be their own
organisation and
can be a labour hire company or group training organisation provided that the
company is paying the job seeker’s wages and that any assignments meet the
eligibility criteria of the Wage Subsidy Placement and Employer.
Note: Where the labour hire company or group training organisation is considered the
Employer of the eligible participant, they must disclose to host organisations that an
Australian Government Wage Subsidy is potentially available for that particular
placement.
Tasmanian Jobs Programme
In addition to the general criteria (above), a Tasmanian Jobs Programme Employer:
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must have a physical business location in Tasmania and
must not have retrenched or reduced the number of workers within the three
months preceding the employment of the relevant Wage Subsidy Participant.
If the Employer has retrenched workers in the past three months, the
Provider must have written Departmental approval before entering into a
Wage Subsidy Agreement with that Employer.
Change of business ownership
Where a Wage Subsidy Employer’s business changes ownership, the new owner will
be eligible to claim the remaining Wage Subsidy provided all other eligibility criteria
and programme requirements are met. A new Wage Subsidy Agreement must be
entered into.
Negotiation of Wage
Subsidy Agreement with
the Employer
Providers must enter into a Wage Subsidy Agreement with a Wage Subsidy Employer
using the Wage Subsidy Agreement template created within the Department’s IT
Systems within 28 days of the participant commencing a Wage Subsidy Placement.
Deed clause reference:
 Clause 89.2
Providers must explain the Wage Subsidy Agreement’s terms and conditions to the
Employer to ensure they fully understand their rights and obligations in accepting the
Wage Subsidy. Both the Provider and the Employer must sign the Wage Subsidy
Agreement either electronically through the Department’s IT Systems or offline.
Employers can also approve Wage Subsidy Agreements online by logging into the
Australian JobSearch website using an AUSkey. If the Wage Subsidy Agreement is
signed offline, the Provider must approve the Wage Subsidy Agreement in the
Department’s IT Systems. Payments must not be made before the Wage Subsidy
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Agreement is signed.
If, during the term of the Wage Subsidy Agreement, the Provider is notified or
determines that the placement has ended or updates are required (for example,
hours or contact details), the Provider must update the Wage Subsidy Agreement in
the Department’s IT Systems.
Supporting Job Seekers
on Wage Subsidies
Providers should offer post placement support, including offering interventions such
as professional services, to job seekers on Wage Subsidies if required. This support
can be Reimbursed from the Employment Fund General Account. This will allow
Providers to support the job seeker and the Employer to maximise the success of the
placement, including after the job seeker is Suspended or Exited from the Provider’s
caseload.
Wage Subsidy Periods
and instalment amounts
All Wage Subsidy amounts are GST inclusive. The Employer and Provider must
consider any tax liability implications of the payment and obtain their own taxation
advice. All GST must be remitted in full to the Australian Taxation Office.
Deed clause references:
 Clause 22
 Clause 88.2
 Clause 89.2
 Clause 89.3
Restart Programme
The total value of a Restart Wage Subsidy is up to $10,000 (GST inclusive) per Wage
Subsidy Placement, payable for each Wage Subsidy Period as follows:
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$3000 after six months of continuous full-time employment (Wage Subsidy
Period 1)
$3000 after 12 months of continuous full-time employment (Wage Subsidy
Period 2)
$2000 after 18 months of continuous full-time employment (Wage Subsidy
Period 3)
$2000 after 24 months of continuous full-time employment (Wage Subsidy
Period 4)
from the commencement of the Wage Subsidy Placement.
Payments are based on the actual average weekly hours worked over the six-month
Wage Subsidy Period (as declared by the Employer) when the payment is due. For this
reason, there can be a variance between the hours initially declared by the Employer
in the Wage Subsidy Agreement and those claimed at the end of each Wage Subsidy
Period.
Pro-rata payments for hours worked between 15 and 29 hours per week are available
based on the table below.
Average
hours
Amounts of Wage
worked Subsidy
per
Period 1 and 2
week
30+
$3000
$2000.00
29
$2900
$1933.33
28
$2800
$1866.67
27
$2700
$1800.00
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Amounts of
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Period 3 and 4
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26
$2600
$1733.33
25
$2500
$1666.67
24
$2400
$1600.00
23
$2300
$1533.33
22
$2200
$1466.67
21
$2100
$1400.00
20
$2000
$1333.33
19
$1900
$1266.67
18
$1800
$1200.00
17
$1700
$1133.33
16
$1600
$1066.67
15
$1500
$1000.00
Youth Wage Subsidy
The total value of the Youth Wage Subsidy is $6500 (GST inclusive) per Wage Subsidy
Placement.
LTU Wage Subsidy
The total value of the LTU Wage Subsidy is up to $6500 (GST inclusive) per Wage
Subsidy Placement, payable each Wage Subsidy Period as follows:
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$3250 after six months of continuous full-time employment (Wage Subsidy
Period 1)
$3250 after 12 months of continuous full-time employment (Wage Subsidy
Period 2)
from the commencement of the Wage Subsidy Placement.
Payments are based on the average weekly hours worked over the six-month Wage
Subsidy Period (as declared by the Employer) when the payment is due. For this
reason, there can be a variance between the hours initially declared by the Employer
in the Wage Subsidy Agreement and those claimed at the end of each Wage Subsidy
Period.
Pro-rata payments for hours worked between 15 and 29 hours per week are available
based on the table below.
Average
hours
worked
per week
Amounts of Wage
Subsidy Period
30
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$3250.00
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29
$3141.67
28
$3033.33
27
$2925.00
26
$2816.67
25
$2708.33
24
$2600.00
23
$2491.67
22
$2383.33
21
$2275.00
20
$2166.67
19
$2058.33
18
$1950.00
17
$1841.67
16
$1733.33
15
$1625.00
Tasmanian Jobs Programme
Tasmanian Employers will be eligible for a one-off payment of $3250 (GST inclusive)
after the job seeker has remained in continuous full-time employment for the six
month Wage Subsidy Period from the commencement of the Wage Subsidy
Placement and the Employer has confirmed that they remain employed.
Payment of instalments
directly to Employers
and claims for
Reimbursement from
the Employment Fund
Wage Subsidy Account
The Provider must make payments out of their own funds to the Employer provided
the job seeker is still employed at the end of the Wage Subsidy Period.
Providers must withhold payments where it is found that an Employer is not fulfilling
its obligations under the Wage Subsidy Agreement. No payment, including any prorata amount, will be made to the Employer if the Wage Subsidy Participant ceases
employment before the completion of the relevant Wage Subsidy Period.
Deed clause references:
 Clause 88.2
 Clause 89.2
 Clause 89.3
 Clause 89.4
 Clause 89.5
Providers must only claim Reimbursement up to the same value, including pro-rata
amounts that they paid to the Employer.
Provision of
Documentary Evidence
In order to process a Wage Subsidy payment to a Wage Subsidy Employer and seek
Reimbursement, Providers must have obtained sufficient Documentary Evidence.
Please refer to the Documentary Evidence Guideline.
Deed clause references:
 Clause 15
Providers may submit claims for Reimbursement in accordance with clauses 89.2–89.5
through the Department’s IT Systems.
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Clause 16
Clause 89.2
Transferred
Arrangements
Deed clause reference:
 Clause 82.2
If a job seeker in a Wage Subsidy Placement transfers to another Provider then both
the gaining and losing Providers must liaise with each other to ensure that both the
job seeker and Employer continue to be supported.
In some circumstances (for example, business reallocation or Provider novations), the
Wage Subsidy Agreement may be copied to the gaining Provider in the Department’s
IT Systems so they can continue to service the Wage Subsidy. The gaining Provider will
be required to reapprove the Wage Subsidy Agreement.
Where the gaining and losing Providers agree to transfer a LTU Wage Subsidy
Agreement with a transferring job seeker, the transfer of any LTU Wage Subsidy
credits (including those already committed) will be a matter to be agreed between
Providers. The gaining provider will be required to reapprove the Wage Subsidy
Agreement.
LTU Wage Subsidy
credits
The LTU Wage Subsidy is the only Wage Subsidy that has credits allocated to the
individual Provider.
Deed clause references:
 Clause 81
 Clause 82
 Clause 88
Credits
Providers will be credited $990 at the Site level for each eligible job seeker (see
below). Providers will need to prioritise the eligible job seekers that require assistance
through Wage Subsidies to secure a job from this pool of funding.
Note: The $990 credit will be allocated to the Provider’s LTU Wage Subsidy Account
for job seekers (Stream Participants) who have been in employment services for
12 months (or six months for Aboriginal and Torres Strait Islander job seekers). The
credit will not be allocated where the job seeker is also eligible for the Youth Wage
Subsidy or Restart Programme.
Management of LTU Wage Subsidy Account
The credit will be allocated at the Site level; however, Providers are able to move
credits between Sites and Employment Regions using the Department’s IT Systems.
In addition, if the LTU Wage Subsidy Account does not have sufficient funds, the
necessary amount will be drawn from the General Account.
Providers should consider their own business processes and practices that deal with
how to manage the allocation of credits amongst their Sites (and the interaction with
the General Account) so as to best meet the needs of Employers and job seekers
across their organisation.
Transfer of credits
In most instances, where a job seeker is transferred between two Providers, both
parties will agree on the amount to be transferred from the LTU Wage Subsidy
Account.
However, when a job seeker is transferred by the Department at the two-year interval
(Stream A) or three-year interval (Streams B and C), 50 per cent of the LTU Wage
Subsidy credit will be transferred to the gaining Provider regardless of funding spent.
These automated transfers may result in a negative balance in the Provider’s LTU
Wage Subsidy Account. In instances where the Provider’s LTU Wage Subsidy Account
has a negative balance, the Provider may:
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transfer credits from another site
draw the money from the General Account (The Department’s IT Systems will
facilitate this)
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defer entering into Wage Subsidy Agreements until additional credits have
been accrued.
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