Federal Budget 2020: Inside the plan to get Victorians back to work
Cash incentives will be offered to businesses who hire unemployed young people, with the government hoping the scheme will create 450,000 jobs across the country.
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A new $4 billion wages subsidy scheme will give businesses up to $10,400 for each unemployed young person they hire in the next year.
In a bid to get those worst-hit by the coronavirus pandemic back into the workforce, the Morrison Government says it hopes the cash incentives will create 450,000 jobs.
All businesses other thank the big banks will be eligible for the subsidies, which will be worth $200 a week if the newly-hired employee is 16-29 years old and works at least 20 hours a week.
Jobs for unemployed people who are 30-35 years old will attract up to $100-a-week cash back.
Companies can claim the hiring credit each quarter, but must have a higher staff headcount and the amount of cash back can’t exceed their increase in payroll for that reporting period.
The new worker must have started between today and October 6 next year for the business to qualify, and employers can’t access more than one Commonwealth wage subsidy program – such as JobKeeper – for the same employee.
Treasurer Josh Frydenberg said the economic recovery from COVID-19 would be built on the back of the government’s $74 billion JobMaker plan, which includes the new $4 billion wages subsidy scheme.
“There is no economic recovery without a jobs recovery. There is no budget recovery without a jobs recovery,” he said last night.
“This Budget is all about jobs.”
Much of the plan is geared towards young people, who have been smashed by the pandemic and economic shutdowns.
Mr Frydenberg said the JobMaker plan would also include a new $1 billion JobTrainer fund, aimed at creating up to 340,700 free or low-cost training places for school leavers and the unemployed.
The scheme will be geared towards areas “of genuine need” agreed upon with states and territories, who will be expected to match funding.
State that participate will have flexibility in the mix of courses on offer.
Mr Frydenberg said there “remains a monumental task ahead” to get people back into work, but that Australia would be up to the task.
The government also unveiled an extra $1.2 billion will be spent subsidising half the wages of new apprentices taken on by any business between October 5 this year, and 30 September, 2021.
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The subsidy will be capped at $7000 a quarter for gross wages, and will help secure 100,000 new apprenticeships.
Employment Minister Michaelia Cash said apprenticeships will play “a critical role in developing and delivering the pipeline of skilled workers that businesses and industry needs to support our economic recovery”.
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Originally published as Federal Budget 2020: Inside the plan to get Victorians back to work