8. Wage subsidies

Supporting Documents for this Chapter

Supporting Documentssign-in required (sign-in required)

• Sample Wage Subsidy Head Agreement and Schedule

• Wage Subsidies Payroll Declaration

8.1 Chapter OverviewCopy citation · §8.1

There is one Wage Subsidy available as part of Inclusive Employment Australia, the Inclusive Employment Australia Wage Subsidy.

This Chapter outlines the responsibilities of Providers in relation to the Inclusive Employment Australia Wage Subsidy, including:

• the purpose of the Wage Subsidy and when it should be used

• identifying which Participants, Employers and Placements are eligible

• how different levels can support Participants with different work capacities

• Provider responsibilities to support, monitor and pay the Wage Subsidy, and

• how a Provider claims a Reimbursement from the Department.

The Inclusive Employment Australia Wage Subsidy is a financial incentive of up to $10,000 that Providers can use to encourage eligible Employers to provide ongoing employment opportunities of at least 8 hours per week for eligible Participants. The Inclusive Employment Australia Wage Subsidy can help by offsetting some of the upfront costs of hiring a new employee. Providers can choose not to offer an Inclusive Employment Australia Wage Subsidy, even if all eligibility requirements are met.

The Inclusive Employment Australia Wage Subsidy must be negotiated and agreed before the Employment starts. The terms must be set out in a Wage Subsidy Agreement and approved online by the Employer within 28 days of the Participant’s Job Placement Start Date. The terms will include the average number of hours the Participant will be offered each week and the total Wage Subsidy value to be paid according to the Wage Subsidy level. The length of a Wage Subsidy is for a fixed 26-week term - a shorter or longer length cannot be negotiated. The Wage Subsidy value cannot be more than 100% of the wage paid to the Participant during the 26-week Wage Subsidy Agreement Term.

The Inclusive Employment Australia Wage Subsidy is payable for Wage Subsidy Placements that last at least 6 weeks, and a pro-rata Payment is available for Employment lasting between 6 and 26 weeks.

Reimbursements are available after 6 weeks of Employment in line with scheduled Payment instalments, or at the end of the 26-week term. Reimbursements are subject to the mandatory uploading of Documentary Evidence for each Payment in the Department’s IT System.

8.2 EligibilityCopy citation · §8.2

8.2.1 Participant EligibilityCopy citation · §8.2.1

Time in employment services

Providers can offer Inclusive Employment Australia Wage Subsidies for Participants who have received at least 6 months of continuous Provider-led employment services in:

• Inclusive Employment Australia or DES

• Workforce Australia Services

• Parent Pathways

• Transition to Work

• Norfolk Island Employment Services Program, and/or

• Community Development Program or the Remote Australia Employment Service.

Note: The 6 months of continuous service excludes any period where the Participant’s status was Pending, Suspended or Exited.

Providers can also offer Wage Subsidies after Commencement in Inclusive Employment Australia for Participants who have received 12 months of Workforce Australia Online.

Note: The 12 months of Workforce Australia Online excludes any period where the Participant was Suspended or Exited.

Ongoing Support (Work Assist) Participants are not eligible for the Inclusive Employment Australia Wage Subsidy.

(Deed Reference(s): Clause 122.1)

Other Participant requirements

Providers cannot offer a Wage Subsidy for a Participant who has:

• an outstanding workers compensation claim against the Employer

• a business or family relationship with the Employer, or

• is accessing any other Commonwealth, State or Territory Government Wage Subsidy that overlaps with the Inclusive Employment Australia Wage Subsidy.

8.2.2 Employer EligibilityCopy citation · §8.2.2

A Wage Subsidy Employer must be a legal entity with a valid ABN which complies with all eligibility requirements under the Wage Subsidy Head Agreement terms and conditions.

A Wage Subsidy Employer must have a verified and active Workforce Australia Online for Businesses account before they can be offered the Inclusive Employment Australia Wage Subsidy. Employers can find help to obtain a Workforce Australia Online for Businesses account at:

• How to register a business account with myID

• Sign in as a business user, and/or

• Common myID questions.

A Wage Subsidy Employer must not be:

• the Provider’s Own Organisation or a Related Entity of the Provider

• an Australian, State or Territory Government entity

• a local government entity, if the position is funded by an Australian, State or Territory Government entity

• a Family Member of the Participant

• a current or prior Employer or host business of the Participant (within the last 2 years)

• suspended or excluded from receiving Wage Subsidies

• of a type of character that would bring the Commonwealth Government into disrepute, including any conflicts of interest

• an Employer who has recently retrenched or reduced the number of workers (or be proposing to do so) without providing satisfactory explanation to the Provider

• a labour hire company or group training organisation, except where the below requirements are met, or

• as otherwise advised by the Department.

Providers can use the Australian Government’s website ABN Lookup — see abr.business.gov.au — to determine if an Employer is eligible and/or request proof from the Employer.

Wage Subsidies are intended to support an initial period of ongoing Employment. Wage Subsidies should not be used for a 6-month Job Placement where there is no likelihood of an ongoing Employment. Employers who have a pattern of terminating a Participant’s Employment when the Wage Subsidy ends should not be supported with further Wage Subsidies and should be reported to the Department along with any supporting evidence.

Labour hire companies and group training organisations 

A Wage Subsidy Employer can be a labour hire company or group training organisation if:

• that company or organisation is paying the Wage Subsidy Participant’s wages, and

• Job Placement(s) with host business(es) meet all eligibility criteria of the Wage Subsidy Placement and Wage Subsidy Employer.

If a labour hire company or a group training organisation is receiving a Wage Subsidy for an employee, they must disclose, in writing:

• To the host business(es): That they are receiving a Wage Subsidy for a Participant, before or during the Wage Subsidy Placement. The Wage Subsidy Employer must give the Provider evidence of the disclosure, and

• To the Provider: The ABN of the host business(es) the Wage Subsidy Participant was placed with for the duration of the Wage Subsidy Agreement. The Wage Subsidy Employer must supply these details before they can claim any Wage Subsidy Payments.

Note: Host businesses who subsequently hire a Wage Subsidy Participant on an ongoing basis are not eligible to receive a Wage Subsidy if that Participant was previously hosted by them within the last 2 years and the Wage Subsidy Participant’s Employment lasted less than 6 months (26 weeks).

A labour hire company is not eligible for a Wage Subsidy for:

• placing a Participant with the same host business that they were Employed with over the past 2 years, if the Wage Subsidy Participant’s Employment lasted less than 6 months (26 weeks), or

• placing a Participant with a host business who does not meet the general Wage Subsidy Employer eligibility requirements.

Prior Employment and Work Trials

An Employer will not be eligible to receive the Inclusive Employment Australia Wage Subsidy where, prior to the Job Placement Start Date, the Participant has been employed by the Employer (including placements with host businesses via a labour hire company or group training organisation), or any other entities associated with the Employer, within the past 2 years. Previous paid Work Trials and periods of unpaid work (e.g. unpaid Work Trials or Voluntary Work) are not considered prior Employment for the purposes of the Inclusive Employment Australia Wage Subsidy.

System step — A Wage Subsidy Agreement cannot be created from a paid Work Trial Vacancy type in the Department’s IT Systems. A new Vacancy will be required where ongoing Employment with an Inclusive Employment Australia Wage Subsidy has been negotiated.

8.2.3 Placement EligibilityCopy citation · §8.2.3

A Wage Subsidy Placement is an Employment position with an eligible Employer that meets all Wage Subsidy eligibility requirements.

The Employment position can be:

• full-time, part-time or casual

• an Apprenticeship or Traineeship, and/or

• found by the Provider or by the Participant.

A Wage Subsidy Placement must:

• be a sustainable and ongoing position expected to continue or a long-term contract. Employment is not intended to end once the Inclusive Employment Australia Wage Subsidy ceases

• provide continuous employment across the full 26-week Wage Subsidy Agreement Term from the Job Placement Start Date of at least 8 hours per week

• offer the minimum weekly average hours as specified in the Wage Subsidy Agreement to the Wage Subsidy Participant across the whole 26-week Wage Subsidy Agreement Term

• be under Open Employment conditions consistent with Outcome requirements

• not include any periods of unpaid work

• comply with all relevant Employment standards for the Employment position under any relevant Commonwealth, State, Territory and/or Local Authority laws and requirements, including but not limited to:

  • complying with the National Employment Standards under the Fair Work Act 2009 (Cth)

  • complying with the minimum terms and conditions of employment prescribed in any Modern Award, Enterprise Agreement or workplace determination that covers or applies to the Wage Subsidy Placement

  • paying the Wage Subsidy Participant at least the equivalent of the minimum rate prescribed in any Modern Award, Enterprise Agreement or workplace determination that covers or applies to the Employment position. If no Modern Award covers or applies to the Employment position, pay at least the equivalent of the National Minimum Wage, and

  • complying with the relevant jurisdiction’s WHS Laws

• making superannuation contributions in accordance with the Superannuation Guarantee (Administration) Act 1992 (Cth), and

• always provide a safe system of work for the Wage Subsidy Participant during the Wage Subsidy Placement.

A Wage Subsidy Placement must not:

• displace an existing employee

• be a commission-based, self-employment or subcontracted position (excluding Placements with labour hire companies or group training organisations)

• be funded by another Commonwealth, State, Territory, or Local Government initiative, including the Disabled Australian Apprentice Wage Support Program, or

• otherwise, be a position that would result in a Non-Payable Outcome — refer to Section 11.5.3 Non-Payable Outcomes.

Employers cannot receive the Inclusive Employment Australia Wage Subsidy if, within the previous 12 months, the Employer has received another Inclusive Employment Australia Wage Subsidy for the same position. This does not include Employers with multiple positions with the same duties, for example factory line workers. In this case, the Inclusive Employment Australia Wage Subsidy can be offered for each individual position (see also Section 8.5.4 Concurrent funding).

An agreed Wage Subsidy Placement can proceed where the Participant commences Employment up to 14 days earlier than the Job Placement Start Date recorded in the Department’s IT Systems if they were eligible on the actual start date. The Wage Subsidy period can start from either the first week of work, or from the Wage Subsidy Agreement start date for a maximum of 26 weeks. Payroll evidence of the actual start date must be provided.

System step — In these circumstances, do not change the start date in the system, as this will void the approved Wage Subsidy Agreement with the reason ‘Created in Error’.

Note: The 14-day ‘grace period’ applies to approved Wage Subsidy Agreements only. The policy intent is to ensure Employers are not disadvantaged where they have commenced a Participant earlier than advised and be ineligible based on prior employment. Unless otherwise notified by the Department, this flexibility must not be used to extend the 28-day timeframe to enter into a Wage Subsidy Agreement with an Employer.

8.3 Wage Subsidy Levels and Participant Employment BenchmarksCopy citation · §8.3

The Inclusive Employment Australia Wage Subsidy has different levels based on the number of hours employment the Employer agrees to provide, on average each week, during the 26-week Wage Subsidy Agreement Term as outlined in the table below.

Inclusive Employment Australia Wage Subsidy Levels

* Note: Participants with a 0-7 hour work capacity are eligible for a Wage Subsidy if the Employer agrees to offer 8 hours or more on average each week. However, the Wage Subsidy is payable at the Level 1 amount in the Wage Subsidy Agreement if the Wage Subsidy Participant achieves an average of at least 5 hours per week Employment (see Section 8.5.3 Calculating Wage Subsidy Payments for Employers for more information on pro-rata Wage Subsidy Payments).

The Wage Subsidy value cannot be more than 100% of the wage paid to the Participant during the 26-week Wage Subsidy Agreement Term. Providers must also not supplement the Inclusive Employment Australia Wage Subsidy using their own funds or other additional funding.

(Deed Reference(s): Clause 122.3, 116.5)

The Provider and Employer must agree in advance of the Wage Subsidy commencing what Wage Subsidy Payment Level amount will apply. The agreed amount must be set out in the Wage Subsidy Agreement.

Note: Reimbursement of the Wage Subsidy cannot exceed the original level amount specified in the Wage Subsidy Agreement (see Section 8.6 Claims for Reimbursement).

In terms of applying the level of Wage Subsidy, the following is provided as an example.

• The Wage Subsidy Agreement specifies the Wage Subsidy Employer will provide the Wage Subsidy Participant with an average of 20 hours work per week over the Wage Subsidy Agreement Term. This meets the criteria for level 3. The maximum agreed Wage Subsidy available for level 3 is up to $7,500. In this scenario:

  • If the Wage Subsidy Participant works average hours equivalent to a higher level of Wage Subsidy (i.e. 30 hours or more per week), the Wage Subsidy Employer is not eligible for a higher level of Wage Subsidy Payment (i.e. under level 4 the agreed amount was up to $10,000). The Wage Subsidy Employer cannot receive more than the agreed Wage Subsidy amount, or

  • If the average hours specified in the Wage Subsidy Agreement are not met, including if a lower number of average hours are achieved that would have meet the average hours equivalent to a lower level of Wage Subsidy (i.e. 15 hours or more per week), a pro-rata Wage Subsidy Payment must be calculated according to the number of Consecutive Weeks the Wage Subsidy Participant was employed at 20 hours per week, on average, from the Job Placement Start Date. The Wage Subsidy Employer is not eligible for an equivalent amount for the lower level of Wage Subsidy Payment (i.e. under level 2 the maximum agreed amount was up to $5,000).

Participants aged under 25 years

To help young Participants (those aged under 25 years) find sustainable Employment, when an Employer agrees to provide a minimum of 20 hours of Employment per week on average across the Wage Subsidy Agreement Term, the highest Wage Subsidy Level of $10,000 applies. If an Employer offers a young Participant less than 20 hours of work per week, they will only be able to agree the maximum Wage Subsidy value specified for that level (i.e. levels 1 to 3 depending on the total weekly hours worked over the Wage Subsidy Agreement Term, as per the table above).

Subsidy work hours must be enough to have met the level of an Employment Outcome

Wage Subsidies are intended to ensure Participants are offered hours of work appropriate to their work capacity. A Wage Subsidy Agreement must specify weekly hours of Employment that would allow the Participant to achieve a:

• Full or Partial Outcome for Participants who have an Employment Benchmark or 15, 23 or 30 hours per week, or

• Full Outcome for Participants who have an Employment Benchmark of 0 or 8 hours per week (as an Inclusive Employment Australia Wage Subsidy must be for a minimum of 8 hours per week average).

The following table shows which levels of Wage Subsidy may be available for Participants, based on their Employment Benchmark.

Inclusive Employment Australia Wage Subsidy Level Availability by Benchmarks

* Note: An Inclusive Employment Australia Wage Subsidy has a minimum requirement of 8 hours of Employment on average per week.

** Note: A Participant with an Employment Benchmark of 15 hours per week can achieve a Partial Outcome with Employment of 10 hours per week on average. The Provider can agree a Level 1 Wage Subsidy (8-14 hours per week) for this Participant only when the Employer has agreed to offer an average minimum of 10 hours per week of Employment.

In terms of applying the Employment Benchmark for a Wage Subsidy, the following is provided as an example.

• A Participant with an assessed work capacity of 23-29 hours per week has an Employment Benchmark of 23 hours per week. The Participant can achieve a Full Outcome if they work 23 hours per week or higher, and a Partial Outcome if they work between 15 and 22 hours per week. In this scenario, the Provider:

  • cannot offer a level 1 Wage Subsidy as Employment at 8-14 hours would not be at the level required for an Outcome

  • can offer a level 2 Wage Subsidy as Employment at 15-19 hours would be at the level required for a Partial Outcome, and

  • can offer a level 3 or 4 Wage Subsidy as these hours would achieve a Full Outcome.

Note: If a Wage Subsidy Participant does not work the required hours for some weeks, but remains Employed, the Wage Subsidy Agreement must continue even though the Participant may not achieve Employment at the level of a Full or Partial Outcome. Providers must continue to support the Wage Subsidy Participant and Employer through the remainder of the Wage Subsidy Agreement Term and the Employer may be eligible for pro-rata Payments (see Section 8.5.3 Calculating Wage Subsidy Payments for Employers).

8.4 Negotiating the Inclusive Employment Australia Wage SubsidyCopy citation · §8.4

8.4.1 Offering and Negotiating Wage Subsidy AgreementsCopy citation · §8.4.1

Providers are expected to use their discretion to determine if a Wage Subsidy is the most effective intervention to secure employment. Wage Subsidies are not intended to support the ongoing financial viability of a business. Wage Subsidies are not intended to support the ongoing financial viability of a business. 

Instances where a Provider might consider a Wage Subsidy is appropriate includes if the financial incentive: 

• would cause the Employer to offer an appropriate employment opportunity, or 

• would result in the Employer increasing the number of hours of work being offered, on an ongoing basis, to an appropriate number of work hours for the Participant. 

Confirming eligibility

Before offering a Wage Subsidy, the Provider must confirm that: 

• the Participant meets Wage Subsidy Participant eligibility requirements, and determine what levels of Wage Subsidy are available for the Participant 

• the Employer meets Wage Subsidy Employer eligibility requirements, and has (or is willing to) open an active Workforce Australia Online for Businesses account, and 

• the proposed Job Placement meets Wage Subsidy Placement eligibility requirements. 

Offering and negotiating a Wage Subsidy

Providers must commence Wage Subsidy Agreement negotiations with an eligible Employer before the Wage Subsidy Placement starts. The Provider must ensure the Employer understands that:

• no Wage Subsidy has been agreed or promised until the Employer approves a Wage Subsidy Agreement that sets out the terms of the subsidy

• the Employer must have an active Workforce Australia Online for Business account to be eligible for a Wage Subsidy, and

• no Wage Subsidy Payment will be made if the Wage Subsidy Placement ends within the first 6 weeks (42 days) of the Wage Subsidy Agreement Term.

Providers are responsible for negotiating and managing all elements of a Wage Subsidy Agreement including making Wage Subsidy Payments to Wage Subsidy Employers. Providers must not charge Wage Subsidy Employers to manage their Wage Subsidy Agreement or use any of the Wage Subsidy for this purpose.

Providers will negotiate:

• the date Employment will commence, from when the Wage Subsidy Agreement will take effect

• how many hours will be offered as part of the placement — this will determine the appropriate Wage Subsidy level to be applied – the Provider must consider the Participant’s Employment Benchmark and personal circumstances in determining a Participant’s average weekly hours

• how the Provider will support the Participant and Employer during the Wage Subsidy Placement, including if any ongoing adjustments are required and any applications to the Employment Assistance Fund (EAF)

• how the Employer will support the Participant

• the Wage Subsidy value (up to the set maximum value for the Participant’s circumstances)

• what Instalment Payment period(s) work best for the Wage Subsidy Employer’s business — refer to Section 8.5 Payments to Wage Subsidy Employers, and

• the mechanism the Wage Subsidy Employer will use to demonstrate that the Wage Subsidy conditions were — refer to Documentary Evidence requirements outlined in Section 8.8 Record Keeping.

Based on these negotiations, some standard Wage Subsidy conditions are set:

• the date of commencement of the Wage Subsidy is the Job Placement Start Date

• the duration of the Wage Subsidy Agreement Term is 26 weeks, and

• the maximum value and minimum employment hours of the Wage Subsidy are determined by the level being offered and/or if the Participant is under 25 years of age.

The agreed terms and conditions of the Wage Subsidy must be set out in a Wage Subsidy Agreement that must be approved by the Wage Subsidy Employer within 28 days of the Wage Subsidy Participant’s Job Placement Start Date.

8.4.2 Entering into Wage Subsidy AgreementsCopy citation · §8.4.2

Head Agreement and Schedules

The Wage Subsidy Agreement includes a:

• ‘Head Agreement’ with general terms and conditions, and

• ‘Schedule’ with the specific terms relating to the Wage Subsidy Placement and Wage Subsidy Participant.

Providers must enter into a Head Agreement once with each Wage Subsidy Employer, via the Department’s IT Systems and the Wage Subsidy Employer's Workforce Australia Online for Businesses account.

A separate Schedule for each new Wage Subsidy Participant will be attached to the Head Agreement. Schedules contain the specific details of the Wage Subsidy Placement for each new Wage Subsidy Participant.

Each Schedule the Provider attaches to the Head Agreement will relate to a single Wage Subsidy Placement and will create a separate Wage Subsidy Agreement between the Provider and the Wage Subsidy Employer in relation to that specific Wage Subsidy Placement.

Both the Head Agreement and the Schedule must be in the format specified by the Department, created in the Department’s IT Systems.

Evidence requirement — Where the Department changes the terms and conditions of the Head Agreement, the Provider must enter into a new Head Agreement with each Wage Subsidy Employer in accordance with the updated terms and conditions before attaching any new Schedules for each new Wage Subsidy Participant.

Providers must explain the terms and conditions of the Wage Subsidy Agreement to the Employer to ensure they fully understand their rights and obligations in accepting the Wage Subsidy. This includes Documentary Evidence requirements and that the Employer must advise immediately if the Wage Subsidy Placement terminates early.

The Provider must also explain to the Employer how their personal information may be handled as part of the Wage Subsidy Agreement. This includes that their personal information may be disclosed to third parties, for example the Department, or a different Provider or an Employer in the event the Participant transfers.

System step — Wage Subsidy Agreements must be created in the Department’s IT Systems by the Provider and approved online by the Employer in their Workforce Australia Online for Business account.

System step — The Wage Subsidy Agreement Schedule must:

• link the Vacancy, Wage Subsidy Employer and Placement details

• specify the minimum average hours of employment that the Employer must provide the Wage Subsidy Participant each week, and

• set out the maximum amount of the Wage Subsidy being offered, based on the agreed level.

Wage Subsidy Agreements will not be accepted in an offline format.

System step — If amendments to the Wage Subsidy Employer’s information are required — for example, a change to the Employer’s ABN — the Provider must update the changed details in the Department’s IT Systems.

Large Employers and ABN

Where a large Employer has multiple subsidiaries, the ABN of the subsidiary business directly employing the Participant (i.e. the Wage Subsidy Employer), must be listed on the Wage Subsidy Agreement. The Provider must ensure the Employer understands which ABN is required to be recorded in the Department’s IT System for each Head Agreement.

Time requirements for approving a Wage Subsidy

Providers must:

• negotiate and agree a Wage Subsidy with an eligible Employer prior to the Participant’s Job Placement Start Date, and

• ensure that the Employer has approved the Wage Subsidy Agreement within 28 days of the Job Placement Start Date.

The 28-day timeframe allows Employers time to consider the terms and conditions of the Wage Subsidy Agreement and to provide their approval online. Providers must ensure Employers are aware that Wage Subsidy Agreements will not be approved beyond the 28-day period from the commencement of Employment.

Providers will not be Reimbursed for any payments made to an Employer where an approved Wage Subsidy Agreement is not in place.

Providers must have appropriate administrative processes in place to meet the 28-day timeframe and must work with Employers to ensure that this timeframe is met. The Department may take compliance action(s) against a Provider where there is evidence (e.g. correspondence and/or a draft Wage Subsidy Agreement in the Department’s IT Systems) that the Provider delayed the Employer’s online approval. This includes, and is not limited to, Provider delays caused by:

• not confirming the Employer's eligibility prior to offering a Wage Subsidy

• offering a Wage Subsidy to an Employer after the Participant has commenced their Job Placement, or

• failing to respond to Employer enquiries in a timely manner.

Employer Notifications

Throughout the Wage Subsidy Agreement Term, the Department’s IT Systems will send notifications to a Wage Subsidy Employer’s email address to prompt action related to the Wage Subsidy Agreement. Some notifications are triggered manually by the Provider, while others are automated. The following outlines the different types of notifications a Wage Subsidy Employer may receive.

Wage Subsidy Agreement is ready for approval

When a Wage Subsidy Agreement is ready for the Employer to approve, an email notification will be sent to the Employer.

System step — To trigger the notification, select ‘Send for approval’ on the draft Agreement screen. The email will include a link to Workforce Australia Online for Businesses. The Employer must use this link to access the online draft Agreement for approval.

For Employers entering their first Wage Subsidy with the Provider, the notification will trigger two approval requests — one to accept the terms and conditions of the Head Agreement and another to confirm the Schedule.

For any subsequent Wage Subsidies, the Head Agreement remains the same, so this notification will ask Employers to review and approve the additional Schedules only.

The first Wage Subsidy approved between the Provider and the Employer via this notification will also link the Employer’s Workforce Australia Online for Business account with the Head Agreement. This ensures the Employer can access and manage this and all future Wage Subsidy Agreements via their account.

Wage Subsidy Agreement is ready to view and manage

After the Employer approves a Schedule, the Employer will automatically receive a notification confirming the Wage Subsidy Agreement is now active. The notification will advise the Wage Subsidy Employer that they will start receiving email reminders requesting Wage Subsidy Payments after the Wage Subsidy Participant has remained Employed for the minimum 6-week period of Employment.

System step — Following approval of the Agreement by the Employer, the status of the Agreement in the Department’s IT Systems will change from ‘Draft’ to ‘Approved’.

ABN attached to a Wage Subsidy Head Agreement has been updated and requires Employer re‑approval

When a Wage Subsidy Employer changes their ABN, they will need to set up a new Workforce Australia Online for Business Account linked to the new ABN.

Once the Wage Subsidy Employer has set up their account, the Provider must update the Wage Subsidy Employer’s Head Agreement in the Department’s IT Systems with the new ABN. The Provider must check if the Wage Subsidy Employer’s email details are still current and correct and then send the Head Agreement for re-approval.

System step — Select ‘Resend for Approval’ to trigger notification to the Wage Subsidy Employer’s email address.

The Head Agreement must be re-approved by the Wage Subsidy Employer before the end date of any Schedule. If a Schedule reaches the end date without re-approval, the Department’s IT Systems will prevent any Wage Subsidy Payments.

Wage Subsidy Payment is due

After each agreed Wage Subsidy Payment instalment period (completed after the first 6 weeks of the Wage Subsidy Agreement Term), the Wage Subsidy Employer will be sent a reminder notification. This will inform them they can request a Wage Subsidy Payment, as set out in the schedule, by invoicing the Provider and supplying documentary evidence.

Wage Subsidy Agreement Term has been completed

On the Wage Subsidy Agreement end date, an automatic notification is sent to the Wage Subsidy Employer to advise them to submit their documentary evidence and invoice for the final Wage Subsidy Payment within 28 days of the Wage Subsidy Agreement end date.

8.5 Payments to Wage Subsidy EmployersCopy citation · §8.5

A Provider may pay a Wage Subsidy Employer a Wage Subsidy Payment progressively throughout the 26-week Wage Subsidy at agreed instalment periods, or at the conclusion of the 26-week Wage Subsidy Agreement Term.

The Provider must only pay a Wage Subsidy Payment if the Wage Subsidy Employer has:

• approved the Wage Subsidy Agreement online via Workforce Australia Online for Businesses

• invoiced the Provider for a Wage Subsidy Payment, and

• submitted documentary evidence that demonstrates the conditions of the Wage Subsidy Agreement have been met.

Evidence requirement — Documentary Evidence must confirm the Wage Subsidy Participant has worked the required minimum average weekly hours under the Wage Subsidy Agreement for the invoiced period.

The Wage Subsidy Employer may be eligible for a pro-rata Payment if the Employment ends early, provided the Employment lasts at least 6 weeks (see Section 8.5.3 Calculating Wage Subsidy Payments for Employers).

In all cases, Wage Subsidy Payments must not exceed:

• the actual wages paid to the Participant, or

• the maximum value specified in the Wage Subsidy Agreement.

8.5.1 Assessing Periods of LeaveCopy citation · §8.5.1

Where a Wage Subsidy Participant has paid or unpaid leave approved in accordance with entitlements under a relevant Modern Award or the National Employment Standards, it can count towards the minimum hours required under the Wage Subsidy. Unpaid leave will not count as wages paid by the Employer in calculating the total Wage Subsidy Payment amount that the Wage Subsidy Employer is eligible to receive from the Provider.

A Wage Subsidy Employer cannot use approved leave to regularly supplement a Wage Subsidy Participant’s work hours for the purpose of meeting the minimum average number of hours per week. A Wage Subsidy Participant declining work or failing to turn up for work is not approved leave.

Evidence requirement — The Wage Subsidy Employer must provide records of approved leave. Evidence of approved leave (paid or unpaid) must show that the Wage Subsidy Employer agreed to the leave at the time the Wage Subsidy Participant requested it, and can either be:

• recorded on the Wage Subsidy Participant’s payslip, or

• on a written declaration from the Wage Subsidy Employer.

Workers Compensation

Workers Compensation payments are an acceptable form of approved leave and count toward the hours worked by the Wage Subsidy Participant, provided this is reflected in Documentary Evidence.

Workers Compensation payments made to the Participant do not count as wages paid by the Employer in calculating the total Wage Subsidy Payment that the Wage Subsidy Employer is eligible to receive.

Providers cannot offer a Wage Subsidy for Participants already receiving Workers Compensation payments. The Worker’s Compensation must have commenced during the 26-week Wage Subsidy Agreement Term to count towards the hours worked.

8.5.2 Change of Business OwnershipCopy citation · §8.5.2

If a Wage Subsidy Employer changes ownership, the new owner is eligible to claim the remaining Wage Subsidy Payment(s), provided all other eligibility requirements are met. The Wage Subsidy Agreement must be novated between the parties before the new owner can claim the remaining Wage Subsidy Payment(s).

8.5.3 Calculating Wage Subsidy Payments for EmployersCopy citation · §8.5.3

The Wage Subsidy Employer may be eligible for the following payment types throughout the term of the Wage Subsidy Agreement:

• Instalment Payments

• Pro-rata Payments, and

• Final Wage Subsidy Payment.

Instalment Payments

When discussing the terms of the Wage Subsidy Agreement, the Provider must negotiate with the Wage Subsidy Employer the Wage Subsidy Payment frequency to create instalments that suit the Wage Subsidy Employer’s business.

Payments can be made progressively to the Wage Subsidy Employer in either weekly, fortnightly, or monthly instalments. Alternatively, they may be paid as a lump sum of the full amount upon completion of the 26-week Wage Subsidy Agreement Term, or another timeframe as agreed by the Provider and Wage Subsidy Employer.

The Wage Subsidy Employer is only eligible to receive a Wage Subsidy Payment where they have met the terms and conditions of the Wage Subsidy Agreement, including meeting the agreed cumulative average weekly hours applicable at the time of requesting each Wage Subsidy Payment.

System step — Providers will need to set the instalment frequency to align with the Schedule negotiated with the Employer. The frequency selected will trigger system notifications to the Employer.

Note: The 100% rule applies to all Wage Subsidy Payments — the total value will not exceed 100% of the Wage Subsidy Participant’s wages at any point over the Wage Subsidy Agreement Term.

Wage Subsidies must not be paid at a lower level if the average hours specified in the Wage Subsidy Agreement are not met, including if a lower number of average hours are achieved that would have meet the criteria for that level of Wage Subsidy (see the example provided in Section 8.3 Wage Subsidy Levels and Participant Employment Benchmarks).

For Wage Subsidy Participants with a 0-hour Benchmark (0-7 hour assessed work capacity) only, if the Wage Subsidy Participant is offered an average of 8 hours per week Employment in the Wage Subsidy Agreement but only achieves an average of 5 hours per week Employment, the Provider may be eligible for reimbursement for the full Level 1 amount specified in the Wage Subsidy Agreement. The Provider may only be reimbursed for up to 100% of the wages paid.

Final Payments

As specified in the Wage Subsidy Head Agreement, Wage Subsidy Employers have 28-days from the end date of the Wage Subsidy Agreement to request Payment of any remaining / final balance.

Employers must submit an invoice to the Provider, based on evidence that the Wage Subsidy Participant has worked the required average minimum weekly hours across the duration of the Wage Subsidy Agreement Term.

8.5.4 Concurrent fundingCopy citation · §8.5.4

Under the terms and conditions in the Head Agreement, Wage Subsidy Employers are required to notify Providers of any Commonwealth, State or Territory Government funding they receive for the Wage Subsidy Participant.

Wage Subsidy Employers cannot access the Inclusive Employment Australia Wage Subsidy if they receive funding from other Commonwealth, State or Territory Government wage subsidies or similar employment program funding for the same Participant in the same position as the Wage Subsidy Placement.

The Provider should continue to check whether the Wage Subsidy Employer is following the above requirements throughout the Wage Subsidy Agreement Term.

8.5.5 Wage Subsidy Employers not registered for GSTCopy citation · §8.5.5

The total maximum amounts of a Wage Subsidy specified in these Guidelines are GST inclusive. Where a non-GST registered Wage Subsidy Employer submits a Tax Invoice for the correct amount of a Wage Subsidy to a Provider, the Provider must pay the Wage Subsidy Employer the amount (GST exclusive).

When the Provider submits a claim for Reimbursement, the Department will pay the full amount (GST inclusive). The Provider is responsible for remitting the GST amount to the Australian Tax Office.

8.6 Claims for ReimbursementCopy citation · §8.6

A Provider can claim Reimbursement for a Wage Subsidy Payment if:

• all terms and conditions of the Deed, these Guidelines, and the Wage Subsidy Agreement have been met

• the Participant has remained Employed for at least 6 weeks

• the Provider has made an agreed Instalment Payment out of their own funds to the Wage Subsidy Employer

• the Reimbursement claim is for the same dollar value they paid the Wage Subsidy Employer, and

• they have retained sufficient Documentary Evidence to demonstrate the above.

The Department has no obligation to Reimburse the Provider for a Wage Subsidy where the Provider has failed to make a claim for Reimbursement.

The Department will monitor Providers’ use and Reimbursement of Wage Subsidies. Incidents of misuse or misappropriation by a Provider may be subject to the Criminal Code Act 1995 (Cth).

8.6.1 Time requirements for claiming a ReimbursementCopy citation · §8.6.1

Providers must submit all claims for Reimbursement no later than 56 days after the end of the Wage Subsidy Placement.

Under the general terms and conditions in the Head Agreement, Wage Subsidy Employers are required to notify Providers immediately if the Wage Subsidy Participant's Employment ends before the end date of the Wage Subsidy Agreement. Providers must record the correct Placement end date in the Department’s IT Systems and must claim Reimbursement no later than 56-days from the end of the Wage Subsidy Placement.

Providers must have appropriate administrative processes in place to meet the 56-day timeframe and must work with Wage Subsidy Employers to ensure that this timeframe is met. Providers who fail to meet the 56-day timeframe may not be Reimbursed.

Payments to Employers

Under the Head Agreement, Providers must make the final Wage Subsidy payment to the Wage Subsidy Employer where, within 28 days from the end of the Wage Subsidy Placement, the Employer:

• requests the final Wage Subsidy payment, and

• supplies the required Documentary Evidence for that payment to the Provider.

Providers may choose to make the final Wage Subsidy payment to the Wage Subsidy Employer when they submit the required Documentary Evidence after the 28-day timeframe, if all other eligibility requirements are met. However, the Provider must claim the Reimbursement from the Department no later than 56 days from the end of the Wage Subsidy Placement.

Recovery of Reimbursement Claims Paid 

The Department may recover any Reimbursements made to the Provider where the Department determines, at its absolute discretion, that the Wage Subsidy Employer has:

• misused the Wage Subsidy

• not met the terms and conditions of the Wage Subsidy Agreement 

• been suspended and/or excluded by the Department from participating in Wage Subsidies, or

• otherwise engaged in an activity that may bring, or could be perceived to bring, the use of government payments or the Commonwealth of Australia into disrepute.

The Department may at its absolute discretion, also recover any Reimbursement made to the Provider where the Department determines that the Provider has not met the requirements of the Deed or these Guidelines.

8.7 Managing Wage Subsidy Agreements for Wage Subsidy ParticipantsCopy citation · §8.7

8.7.1 Supporting Participants on Wage SubsidiesCopy citation · §8.7.1

Providers are expected to support Wage Subsidy Participants and Wage Subsidy Employers to maximise the success of Wage Subsidy Placements. As a Wage Subsidy Participant is usually in Post Placement Support, the Provider’s support may also assist the Wage Subsidy Participant to successfully complete an Employment Outcome.

In some cases, a Wage Subsidy Participant may return to Pre-Employment Support because they have not worked the agreed minimum average hours and will therefore not meet the required hours to achieve an Outcome. The Provider must continue to support these Participants during the remaining part of the Wage Subsidy Agreement Term. The Provider can re-anchor the Job Placement in Post Placement Support, where appropriate (see Section 9.5.4 Re-anchoring Job Placements).

Providers should immediately advise the Department if a Wage Subsidy Participant reports any Incidents of inappropriate or unsafe workplace behaviour and must follow the appropriate process and protocols as outlined in these Guidelines.

8.7.2 Managing Wage Subsidy Agreements for Transferred ParticipantsCopy citation · §8.7.2

If a Wage Subsidy Participant transfers to another Provider, the Gaining Provider must contact the Transferred Wage Subsidy Participant’s Employer and use their best endeavours to enter into a new Wage Subsidy Agreement with the Wage Subsidy Employer to maintain the terms and conditions in the original Wage Subsidy Agreement.

(Deed Reference(s): Clause 122.6, 122.7)

A new Wage Subsidy Agreement between the Wage Subsidy Employer and the Gaining Provider ensures that the Participant continues to be supported in their Placement, and that all parties understand the terms and conditions of the new Wage Subsidy Agreement.

8.8 Record KeepingCopy citation · §8.8

Below is a summary of the Documentary Evidence requirements for this Chapter.

Evidence from the Wage Subsidy Employer of Participant’s Employment

Providers must upload mandatory Documentary Evidence of the Wage Subsidy Participant’s Employment into the Department's IT Systems at the time of making a claim for Wage Subsidy Reimbursement.

Evidence requirement — Documentary Evidence must confirm the Wage Subsidy Employer's details (including name and ABN) and the Wage Subsidy Participant's full name.

• The ABN on the Documentary Evidence must match the ABN on the approved Wage Subsidy Agreement. Exceptions that can be supported with additional evidence are:

• Employer engages a third party to act on their behalf to manage the administration of a Wage Subsidy

• Employer has a separate ABN for the payroll function in their business structure, or

• Employer’s ABN has changed since the agreement was approved and the Department's IT system does not support a corresponding change to the Head Agreement (for example, when the ABN change is not identified until after the Wage Subsidy Agreement end date).

  In these cases, the Provider should obtain sufficient Documentary Evidence which clearly explains the relationship across the ABNs. This includes a written statement from the Employer that explains the reason for the discrepancy, supported with the Provider’s record of any impacting IT issue, if relevant.

  • If the Wage Subsidy Employer is a labour hire company or group training organisation:

• the ABN of the host business(es) the Wage Subsidy Participant was placed with throughout the Wage Subsidy Agreement Term. This can be recorded on the Wage Subsidy Payroll Declaration template, provided via email or included in the statutory declaration, and

• evidence the labour hire company or group training organisation disclosed they were receiving an Inclusive Employment Australia Wage Subsidy to the host business.

Evidence requirement — Documentary Evidence must redact a Participant’s TFN and include evidence to confirm the Wage Subsidy Participant's Employment which demonstrates the hours worked each week (including any periods of approved leave taken) and wages paid for the entire Wage Subsidy Period, which may be in the form of (but is not limited to):

• a completed Wage Subsidies Payroll Declarationsign-in required (sign-in required) (available on the Provider Portal)

• payslips or a printout from the Wage Subsidy Employer’s payroll software, or 

• a statutory declaration, email or other correspondence from the Wage Subsidy Employer.

Evidence requirement — Where a Wage Subsidy Participant's Employment ends before the Wage Subsidy Placement end date, a written statement of the reason why the Employment ended is required.

The Department can request additional Documentary Evidence from Providers relating to a Wage Subsidy Placement, Wage Subsidy Participant and/or Wage Subsidy Agreement from Providers, to support Program Assurance Activities. If Providers do not have this Documentary Evidence, they can request it from a Wage Subsidy Employer. Employers are required under the Wage Subsidy Agreement to supply any requested information.

End of Participation in Inclusive Employment Australia

Where a Wage Subsidy Participant:

• revokes their consent for their personal information to be handled in accordance with the Direct Registration Form or Privacy Notification and Consent Form,

• is exited or suspended from the program,

• ceases to participate in the program before the Wage Subsidy Placement end date, and/or

• experiences circumstances that impact the Provider’s and/or Employer’s ability to meet their obligations under the Head Agreement, or the Deed or any other employment agreement they may have with the participant,

the parties should provide a written statement to the Employer or the Provider (or where necessary the Department) of the reason why the Wage Subsidy obligations cannot be fulfilled. Providers should otherwise comply with the Wage Subsidy Agreement up until the date the Participant withdrew their consent. The Providers may issue a pro-rata subsidy in accordance with Section 8.5.3 above.

Evidence from Provider for Claims for Reimbursement

Providers must also demonstrate payment of a Wage Subsidy amount to the Wage Subsidy Employer before claiming a Reimbursement.

Tax File Numbers must be redacted from any payslips before being uploaded into the Department's IT Systems as Documentary Evidence to support Wage Subsidy Payments.

Evidence requirement — Documentary Evidence demonstrating payment may be in the form of a:

• record of transaction (bank statement or report from the Provider’s financial system)

• Tax Invoice and corresponding receipt from the Wage Subsidy Employer

• Tax Invoice from the Wage Subsidy Employer and a remittance advice, or

• statutory declaration, email or other correspondence from the Provider.

Evidence requirement — Documentary Evidence to support a claim for Reimbursement must confirm:

• the Wage Subsidy Participant’s name and JSID

• the Wage Subsidy Employer’s details (including name and ABN)

• the amount of the Wage Subsidy Payment, and

• the date the Wage Subsidy Payment was made.

In addition to the mandatory Documentary Evidence requirements to support Payment integrity activities, Providers are also encouraged to upload other relevant evidence (correspondence or file notes) to support their claims, particularly if there were unusual or complex circumstances that require further explanation.