Does Your Business Need Staff? You Could be Paid up to $10,000 for Hiring Employees
Hiring staff can be expensive, but did you know there are federal government subsidies of up to $10,000 per employee available to help you pay their wages? You can also get a subsidy if you hire an apprentice.
Read on to find out more, including the eligibility requirements and FAQs.
Your business needs to meet the following criteria to be eligible for a wage subsidy for a newly hired employee. Your business must:
- have an ABN.
- not be a government agency.
- be offering an ongoing position for at least 20 hours per week during the six months of the subsidy agreement.
- be hiring an eligible new employee who has never previously worked for you.
- not be using the new hire to replace an existing employee.
- not be offering the new employee a commission-based, sub-contracting or self-employment role.
- not be offering the subsidised new position to a family member.
What new employees are eligible for a wage subsidy?
The following new employees are eligible for up to $10,000 wage subsidies provided they are registered under the relevant government program or department:
- people aged over 50 who are on the Restart program.
- people aged 15 to 24 years.
- Indigenous Australians.
The following are eligible for up to $6,500 wage subsidies:
- youth aged between 25 and 29 years.
- parents who are principal carers.
- the long-term unemployed (i.e. those who have been unemployed for more than 12 months).
Will my business receive the wage subsidy as a lump sum?
No, the payments will be made over six months and you can arrange how often you receive them (e.g. fortnightly or monthly).
How do I apply?
You can apply for a wage subsidy for an eligible new employee through a registered employment services provider. You must do this within 12 weeks of hiring your new staff member.
What wage subsidies are available for hiring apprentices?
If your business employs a trade apprentice, you can receive a wage subsidy under the Boosting Apprenticeship Commencement Program. This Program is designed to help with the post-COVID-19 economic recovery.
Your business must employ the new apprentice before 31 March 2022 to be eligible. You can then claim 50% of each new apprentice’s first year wages as a subsidy up to a maximum of $7,000 per apprentice per quarter.
After your apprentice completes their first year, you can then claim a Completing Apprenticeships wage subsidy. This subsidy is 10% of each apprentice’s second year wages up to a maximum of $1,500 per quarter, and 5% of their third year’s wages up to a maximum of $750 per quarter.
You can apply for apprentice subsidies through an Australian Apprenticeship Support Network Provider.
The bottom line
Hiring new staff and training them well can be a great way to grow your business. If your business can meet the eligibility requirements for a new employee or apprentice wage subsidy, why not take advantage of it?
By the time the subsidy ends, your new staff member should be easily covering the cost of employing them.
If your business needs any help with working capital management via a business line of credit, debtor financing, or asset financing, contact Earlypay’s helpful team today on 1300 760 205 or visit our sign-up form.
If you'd like to learn how Earlypay's Invoice Finance & Equipment Finance can help you boost your working capital to fund growth or keep on top of day-to-day operations of your business, contact Earlypay's helpful team today on 1300 760 205, visit our sign-up form or contact [email protected].