Wage subsidy opportunity in Federal Budget

The second item that caught my eye in the Federal Budget last night was the apprentice and trainee wage subsidies. Any measure that has a floor and ceiling will create winners and losers. I heard on my drive into work this morning the outpouring of emotion from those just outside the 16-29 and or the 30-35 age bracket that become less employable relative to those just inside the age brackets by virtue of announcements last night.

In short, the announcement was that new employees given at least 20 hours of work having been on JobSeeker will be subsidised by $200 per week in the JobMaker Hiring Credit and $100 a week for those 30-35 which will be administered by the Australian Taxation Office (ATO).

As an aside, these continued stimulus payments both state government grants and federal subsidy directed to payroll effectively continue the push to move businesspeople in trust structures from withdrawing cash from the structure as drawings as a prepayment of future beneficial entitlement to Single Touch Payroll (STP) wage and salary administration with ensuring superannuation guarantee obligations. This is another key strategic conversations for boards and business owners to be having with their trusted advisors.

The nuts and bolts of eligibility are holding an ABN, being up to date with tax lodgements, be registered for Pay As You Go (PAYGW) witholding and reporting through the STP system. Without doubt, the funnel is seeking to give the ATO and government generally visibility through big data of both the incomes and spending habits of all Australians.

The threshold of working at least 20 hours per week quarter by quarter is not onerous. It is expected that unemployment be mitigated in a different way to the jobkeeper program which sought to retain existing staff. This one is seeking to find work for those not employed currently. As a result, changing jobs from jobkeeper to a new employer will not qualify.

It might be advisable for eligible prospective employees to indicate in their cover letter or resume their eligibility to ensure employers are aware and not forced into questions in interviews that may subsequently be seen to be discriminatory!