Federal Budget 2020: How Qld businesses can get a share of $74b jobs cash splash
Queensland businesses taking on new employees will be able to grab a share of a $74 billion subsidy bonanza as the Federal Government tries to get half-a-million people back into the workplace. Here’s how it will work.
QLD Business
Don't miss out on the headlines from QLD Business. Followed categories will be added to My News.
Wages of young employees will be subsidised and businesses splashed with cash as part of a $74 billion jobs bonanza to get young Australians back into work.
The Federal Government will launch JobMaker and JobTrainer – the latest incarnations of its job-supporting schemes – and spend billions of dollars to encourage businesses to employ half-a-million new staff.
What Federal Budget delivers for Queensland
Federal Budget 2020: Your five-minute easy guide
Federal budget 2020: Home buyers, pensioners, this year’s winners and losers
Federal Budget 2020: Calculate how tax cuts will affect you
Treasurer Josh Frydenberg, in his second budget, has revealed the Commonwealth would invest $4bn and create the landmark JobMaker program to help people hit hardest by the economic downturn.
Businesses will receive a $200 “hiring credit” each week if they employ someone on JobSeeker aged between 16 and 29 – or $100 for someone between 30 and 35 – over the next 12 months.
The employee must have worked a minimum of 20 hours per week, averaged over a quarter, and received the JobSeeker Payment, Youth Allowance or Parenting Payment for at least one month out of the three before they are hired.
It is expected about 450,000 positions will be supported under the $4bn program.
Mr Frydenberg revealed the government would also expand its $1bn JobTrainer fund and provide an extra $1.2bn to help create 100,000 new apprenticeships and traineeships.
A 50 per cent wage subsidy will be paid by the government for businesses to employ a new apprentice or trainee.
The subsidy comes on top of $1bn already announced to create 340,000 free or low-cost training places for school leavers and job seekers.
The Commonwealth will also fund 50,000 higher education courses in agriculture, health, IT, science and teaching to help Australians secure a job.
“This budget is making a record investment in upskilling and reskilling Australians,” Mr Frydenberg said.
“We are investing in regions across Australia to connect job seekers to local employment opportunities.”
JobMaker and JobTrainer are the latest in the government’s job-supporting schemes.
Mr Frydenberg hopes the JobMaker credit will help wind-down the more costly JobKeeper and JobSeeker programs which were introduced in March to cushion the immediate economic blow of COVID-19.
JobKeeper is expected to cost the economy $101.3bn by 2024.
The government’s five-year JobMaker plan includes about $74bn in measures to help the private sector deliver “stronger economic recovery and drive down the unemployment rate”.
Business Council of Australia CEO Jennifer Westacott said the job-creating incentives showed Australia was shifting “from support to recovery and growth.
“It rightly puts the incentives back with the private sector to reopen, grow and employ more people,” she said.
“We also welcome the government’s commitment to wage subsidies, particularly targeting young Australians who are at the highest risk of unemployment and helping them into the workforce.”
Under new reforms new superannuation accounts will no longer be created each time a worker starts a new job – instead the person’s super account will follow them.
The government will also allocate $143.7m over four years from 2020-21 to provide targeted
support to people who have lost their job due to the COVID-19 pandemic, including $62.8m to connect regional job seekers with training and job opportunities.