What is a wage subsidy?
A wage subsidy is a payment from the Australian Government that encourages employers to hire eligible job seekers. These incentives help reduce hiring expenses and can support on-the-job training, workplace adjustments or mentoring for new employees.
The exact amount is negotiated between the employer and the employment services provider based on the needs of both parties. The maximum subsidy for all categories is $10,000, inclusive of GST.
Through Workforce Australia and Inclusive Employment Australia, wage subsidies support employers hiring targeted candidates, including long-term unemployed people, employees of all ages, parents returning to work and Indigenous job seekers.
Wage subsidies can support businesses that want to grow their workforce while managing recruitment costs. This government funding helps employers explore a wider range of candidates and reduce financial risk when creating new positions.
Wage subsidies can also support local job creation by making it easier to employ workers who may otherwise face barriers to entering the labour market. As a result, businesses can strengthen their workforce while contributing to stronger employment outcomes.
What job types qualify for wage subsidies?
Wage subsidies apply to a broad range of employment arrangements. The role must average at least 20 hours per week across the 26-week subsidy period. Eligible job types include permanent full-time positions, permanent part-time positions, apprenticeships, traineeships and ongoing employment arrangements that meet national employment standards.
Positions that do not qualify include roles given to immediate family members, positions where the worker already receives another Australian Government wage subsidy, jobs that replace existing staff and commission-based, subcontracting or self-employment arrangements.
Businesses that may qualify for subsidies
Wage subsidy programs outline eligibility criteria for participating businesses. These typically include having a valid Australian Business Number (ABN) and operating within Australia. Programs may also specify that the role offered to a job seeker aligns with relevant employment standards, such as award conditions and the national minimum wage. The government’s Business website offers general guidance on how these criteria are applied and helps clarify which subsidy options may relate to a particular position.
Types of wage subsidy for employers
The Australian Government offers multiple categories of wage subsidy for eligible employers. Each subsidy targets a specific group and lasts for up to six months. All amounts are inclusive of GST.
Restart wage subsidy
Restart supports employers who hire candidates who are 50 years or older. Employers can receive up to $10,000. This is normally paid over a 26-week period for ongoing positions. There are eligibility rules on minimum hours, job type and claim timing.
Wage Start subsidy
This subsidy supports job seekers who have been unemployed for more than 12 months and work at least 15 hours per week during the subsidy period. Employers can access up to $6,000, and the subsidy is often tied to roles of at least 15 hours per week over 26 weeks.
Workforce Australia wage subsidy
Various wage subsidy arrangements are available for employers of eligible jobseekers under Workforce Australia employment services. Subsidies of up to AU$10,000 are available. Eligibility timing and amounts can depend on an individual’s circumstances (e.g., length on the system, Indigenous status, provider engagement).
Wage Subsidy Scheme
This is a shorter-term subsidy sometimes offered for jobs of limited hours/duration when hiring through certain providers. It is typically for short placements and offers up to $1650.
Apprenticeship and trainee incentives
There is a set of incentives for employers taking on apprentices and trainees; programs and rates vary by cohort and policy changes. They typically take the form of percentage-based wage subsidies or fixed payments in early years, plus there are other incentives for priority occupations or regions.
Inclusive Employment Australia (IEA) wage subsidy
Inclusive Employment Australia is a specialist disability employment program assisting people with disability, injury or health condition to prepare for, find and maintain work and grow their career. There are no time limits, and employers can access up to $10,000.
State/territory or sector-specific supports
Additional local supports may exist offered by state governments or local programs. Examples include state payroll tax rebates for hiring Indigenous employees or other local grants; availability and amounts vary across jurisdictions. Check business.gov.au and state government pages for local programs.
How are wage subsidies paid?
Wage subsidies are paid through employment services providers after the employer supplies evidence of employment and wage payments. Payments can be made weekly or fortnightly. Employers need accurate records to confirm work hours, wages paid and the ongoing nature of the job.
How wage subsidies can help businesses
Wage subsidies help employers reduce recruitment costs, expand workforce capacity and access a larger talent pool. They encourage the employment of candidates who may face barriers to entering work. These perspectives can strengthen business performance by contributing new ideas and lived experiences to the workplace.
Who is eligible for a wage subsidy?
Eligibility depends on both employer and employee requirements.
Employee eligibility requirements
Eligible participants may include people who are:
- 15 to 29 years old
- Indigenous Australians
- 50 years or older
- registered with Disability Employment Services
- principal carers
- registered with an employment services provider for 12 months or more.
Employer eligibility requirements
Eligibility for wage subsidies generally depends on several conditions. These may include:
- holding a valid Australian Business Number
- not having previously employed the candidate
- not operating as an Australian, state or territory government agency
- offering a job that aligns with national employment standards
- expecting the role to continue beyond the subsidy period
- providing at least 20 hours of work per week over six months.
Wages, superannuation, tax and insurance are handled in accordance with applicable laws and workplace obligations.
Job seeker support
Workforce Australia and other employment services provide job seekers with recruitment assistance, training programs and mentoring to help them secure ongoing work. Support may include resume preparation, job search strategies and interview practice. These services help job seekers secure roles that may qualify for wage subsidies and provide employers with candidates who are prepared for work.
Employment services and support for employers
Employment services providers help employers navigate wage subsidy eligibility, application processes and documentation. Providers can also assist with recruitment, training plans and workplace support. This partnership helps employers fill vacancies more effectively while helping job seekers access long-term opportunities.
Additional advantages of wage subsidies
Wage subsidies can enhance workforce stability by allowing employers to invest in long-term hiring pathways. Employers may use available funds to support customised training for new staff, workplace adjustments or professional development. These efforts can improve retention and build internal capability, especially in small businesses that need cost-effective growth strategies.
Wage subsidies can also help employers address workforce shortages in regional or remote communities. By reducing upfront hiring costs, businesses can create new roles in areas that face limited access to skilled workers.
The role of employment services providers
Providers play a vital role by assessing eligibility, guiding employers through the subsidy agreement, supporting candidates during job search and offering ongoing assistance. Providers can also help employers navigate complex program rules, confirm documentary requirements and ensure that all compliance obligations are met.
How to apply for a wage subsidy
Employers can apply by contacting an employment services provider as soon as a suitable job commences. Employers must submit a wage subsidy agreement within 12 weeks of the employee’s start date. The provider submits documentation to the Government after confirming the employer has met all requirements.
