Chapter 7. Wage Subsidies

Supporting Documents for this Chapter

• Wage Subsidy Operations Guidesign-in required (sign-in required)

• Wage Subsidy Payment templatesign-in required (sign-in required)

• Wage Subsidy Calculatorsign-in required (sign-in required)

7.1. Chapter OverviewCopy citation · §7.1

Wage Subsidies are a financial incentive Providers can offer to eligible Employers to encourage them to hire eligible Participants in ongoing jobs by contributing to the initial costs of hiring a new employee.

There are 2 Wage Subsidy types available:

• the Youth Bonus Wage Subsidy, funded from a demand-driven pool, and

• the Workforce Australia Services Wage Subsidy, funded through the Employment Fund.

  Unless otherwise specified, all processes in this Chapter apply to both Wage Subsidy types.

Note: from 1 July 2025 a new ‘Real Jobs, Real Wages’ Wage Subsidy type will appear in the Department’s IT Systems. Access to this Wage Subsidy is restricted to Providers working with the Department on the Real Jobs, Real Wages Pilot. Providers must refer to the Real Jobs, Real Wages Pilot Chapter for further information.

Providers are expected to work directly with Employers to understand their recruitment needs, the needs of the job placement, and to recommend Participants whose skills and experience make them a good fit for the role. As part of these interactions, Providers should develop productive relationships with Employers and offer Wage Subsidies as part of an ongoing program of support to assist disadvantaged Participants into eligible jobs that are decent, safe, appropriately secure, and provide workers with the flexibility to balance their work and personal lives.

Providers are best placed to assess the needs of Participants and Employers in their local labour market and based on this, Providers can decide whether to offer a Wage Subsidy to an Employer. This means a Provider may choose not to offer a Wage Subsidy to an Employer even if all eligibility requirements are met.

In determining whether to offer a Wage Subsidy, Providers must ensure that the following principles are met:

• providing value for money, by ensuring a wage subsidy is used as an intervention to secure a suitable and decent job for an eligible Participant

• compliance with any work, health and safety requirements under the relevant state or territory legislation

• withstanding public scrutiny

• not bringing employment services or the Australian Government into disrepute.

Providers must ensure Employers are aware they are not entitled to receive a Wage Subsidy until such time as the Provider has decided to offer a Wage Subsidy to the Employer and the Employer has entered into a Wage Subsidy Agreement with the Provider via a Wage Subsidy Agreement approved within 28 days of the Participant commencing Employment (see Head Agreements and Schedules).

7.2. Wage Subsidy Eligibility RequirementsCopy citation · §7.2

7.2.1. Participant EligibilityCopy citation · §7.2.1

Participant eligibility criteria for the available Wage Subsidies is detailed in Attachment 7A.

The Department’s IT Systems will assess a Participant’s eligibility for a Wage Subsidy, based on their time spent participating in relevant employment services. Eligibility is determined based on the Job Placement Start Date.

If a Provider determines the Department’s IT Systems has incorrectly assessed Participant eligibility, the Provider must contact their Provider Lead to discuss the issue.

As part of confirming a Participant's eligibility, Providers must check if the Participant has an active Wage Subsidy Agreement in place with their organisation that overlaps with any potential new Agreement. Where an overlapping Agreement is identified, Providers must confirm the Employment has ended and then end the existing Agreement in the Department's IT Systems with the correct Employment end date before creating the new Agreement within the 28-day timeframe.

If you identify an overlapping Wage Subsidy Agreement managed by another Provider, you must speak to your Employment Region Lead immediately who can assist with contacting the previous Provider to end the concurrent agreement. Refer to the Wage Subsidy Operations Guidesign-in required (sign-in required) for further details.

7.2.2. Employer EligibilityCopy citation · §7.2.2

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 also have a verified and active Workforce Australia Online for Business account before they can be offered a Wage Subsidy.

A Wage Subsidy Employer must not be:

• the Provider’s Own Organisation

• a Related Entity of the Provider

• a government entity, unless specified below

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

• a Family Member of the Participant, to ensure there is no real or perceived conflict of interest or unfair advantage

• suspended or excluded from receiving Wage Subsidies

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

• as otherwise advised by the Department.

Labour Hire Companies and Group Training Organisations

A Wage Subsidy Employer can be a labour hire company or a group training organisation, provided the company is paying the Participant’s wages and the placement/s with the host business/es meet all eligibility criteria of the Wage Subsidy Placement and Employer.

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

• to the host business/es that they are receiving a Wage Subsidy for an employee. The Wage Subsidy Employer must retain Documentary Evidence of the disclosure and supply it to the Provider. See Summary of Documentary Evidence section for details the disclosure must contain.

• to the Provider, prior to being eligible for any Wage Subsidy payments, the ABN of the host business/es the Wage Subsidy Participant was placed with for the duration of the Wage Subsidy Agreement.

Host businesses who subsequently employ a Wage Subsidy Participant on an ongoing basis are not eligible to receive a Wage Subsidy for that Participant, where they hosted the same Participant within the previous 2 years. Likewise, a labour hire company is not eligible for a Wage Subsidy where they place a Participant with a host business who has previously employed the Participant within the past 2 years. See Not eligible – Prior Employment section for details.

Not eligible – Government Entities

A Wage Subsidy Employer or host business must not be an Australian Government or state or territory government entity.

Similarly, the Employment position cannot be funded by an Australian, state or territory government entity.

Example: A Wage Subsidy Agreement cannot be entered into for a labour hire company which places a Participant in an Australian Government-operated call centre, or a state government-operated manufacturer of ships.

A Wage Subsidy Employer can be a local government entity, provided the Employment position is not funded by an Australian, state or territory government entity.

Providers can use the Australian Government’s website ABN Lookup (abr.business.gov.au) to determine if an Employer is a government entity, and/or request proof from the Employer.

Not eligible – Prior employment

An Employer will not be eligible to receive a 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 any other entities associated with the Employer, within the previous 2 years.

Paid work trials (of up to a maximum of two weeks' duration) and periods of unpaid work (e.g. unpaid trials or voluntary work), whether recorded in the Department’s IT Systems or agreed between an Employer and Participant, are not considered prior Employment where they occur immediately prior to a Wage Subsidy Agreement.

Wage Subsidy Placements cannot include periods of unpaid work trials. Providers can use Wage Subsidies for Employment that starts after an unpaid work trial ends, if all other eligibility requirements for the Participant, Employer and Placement are satisfied.

Where a Wage Subsidy Participant commenced Employment up to 14 days earlier than the Job Placement Start Date recorded in the Department’s IT Systems, Providers can allow the wage subsidy to proceed, where payroll evidence is provided, and the Participant was eligible on the actual start date of Employment.

Paid work trials that took place earlier than 14 days prior to the Wage Subsidy Agreement start date may be considered prior employment unless the Employer can provide a reasonable explanation for the delay between the paid work trial ending and ongoing, paid employment commencing. Providers can request assistance from the Department (via Question Manager) in assessing evidence where it is not clear whether this explanation can be accepted.

• Documentary evidence — Providers must retain payroll evidence of the Wage Subsidy Placement start date, where it differs from the Job Placement Start Date recorded in the Department’s IT Systems. Refer to the Wage Subsidy Operations Guidesign-in required (sign-in required) for further details on how to apply this approach.

7.2.3. Placement EligibilityCopy citation · §7.2.3

A Wage Subsidy Placement is an Employment position with an eligible Employer that meets all 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 indefinitely. This means the Employment is not intended to end when the Wage Subsidy ceases.

• offer at least the required minimum average hours per week which can be averaged over the duration of the Wage Subsidy Agreement to flexibly support Wage Subsidy Participant and Wage Subsidy Employer needs.

• comply with all Employment standards for the Employment position under any Commonwealth, state and/or territory laws, including but not limited to:

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

  • complying with the minimum terms and conditions of employment prescribed in any Modern Award that covers or applies to the Wage Subsidy Placement.

  • paying the relevant Wage Subsidy Participant at least the equivalent of the minimum rate prescribed in any Modern Award that covers or applies to the Employment position or, if no Modern Award covers or applies to the Employment position, at least the equivalent of the National Minimum Wage

• comply with all relevant laws and requirements of any Commonwealth, state, territory or local authority, including work, health and safety legislation

• provide a safe system of work for the Wage Subsidy Participant at all times during the Wage Subsidy Placement

• not displace an existing employee

• not be a commission-based, self-employment or subcontracted position (excluding Placements with labour hire companies or group training organisations)

• not otherwise be an Unsuitable position as defined in the Deed.

7.3. Offering and Negotiating Wage Subsidy AgreementsCopy citation · §7.3

Providers are responsible for negotiating and managing all elements of a Wage Subsidy Agreement including making payments to Wage Subsidy Employers. Providers must not charge Wage Subsidy Employers to manage Wage Subsidy Agreements.

Providers must ensure Employers are aware of the requirement to approve and manage their Wage Subsidy Agreements online via Workforce Australia Online for Businesses and ensure they have an active account before they commence negotiating a Wage Subsidy Agreement.

In negotiating a Wage Subsidy Agreement with an eligible Employer, Providers must first confirm which Wage Subsidy a Participant is eligible to attract in the Department's IT Systems and that there are no other active Agreements for that Participant.

Any advice to the Employer regarding the Participant’s eligibility must be underpinned by advice that the Employer is not guaranteed a Wage Subsidy until the Provider offers a Wage Subsidy Agreement for the Employer to approve. Providers must ensure communication regarding the availability of a Wage Subsidy is clear and must ensure the Employer is provided with an outcome within a reasonable timeframe.

See Table 7‑A: Wage Subsidy Types and Participant Eligibility Requirements for further details.

7.3.1. Head Agreements and SchedulesCopy citation · §7.3.1

The Wage Subsidy Agreement consists of the general terms and conditions of the Head Agreement and the specific terms relating to the Wage Subsidy Placement, Wage Subsidy Participant, and the Wage Subsidy Period/s set out in the relevant Schedule.

The Wage Subsidy Period means the payment period for a Wage Subsidy, which are instalment payments of the agreed maximum amount.

Providers must enter into a Head Agreement once with each Wage Subsidy Employer, via the Department’s IT Systems and the Employer's Workforce Australia Online for Businesses account (refer to the Wage Subsidy Operations Guidesign-in required (sign-in required) for further information). A Sample Copy of the Head Agreement can be found on the Provider Portal.

Once a Head Agreement has been entered into, a separate Schedule for each new Wage Subsidy Participant is 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 contract (Wage Subsidy Agreement) between the Provider and the Wage Subsidy Employer in relation to that Wage Subsidy Placement. Both the Head Agreement and the Schedule must be in the form specified by the Department, created in the Department’s IT Systems.

• System step — Where the Department changes the terms and conditions of the template 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 in respect of Wage Subsidy Placements. This includes having to enter into a new Head Agreement with those Employers with whom the Provider already has a Head Agreement.

7.3.2. Negotiating Terms of the Wage SubsidyCopy citation · §7.3.2

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 explaining the Documentary Evidence required from the Employer to confirm the Employer’s compliance with the terms and conditions over the course of the Wage Subsidy Agreement, and that the Employer must advise immediately if the Placement terminates early.

The Provider must consider the Participant's ability to meet a weekly average hour requirement when determining the suitability of the Wage Subsidy Placement for the Participant, including whether they have an Employment Services Assessment and/or assessed Partial Capacity to Work. Participants are eligible to attract a Workforce Australia Services Wage Subsidy where they work the minimum average weekly hours (at least 15) over the duration of the Wage Subsidy Placement agreed between the Provider and Wage Subsidy Employer and meet all other eligibility requirements for the relevant Wage Subsidy. Youth Bonus Wage Subsidy Participants must work a minimum average of 20 hours per week.

The term of a Wage Subsidy Agreement begins (Wage Subsidy Placement start date) on the Job Placement Start Date. The Wage Subsidy Agreement ends on the date agreed by both the Provider and Employer (i.e., between six and 26 weeks following the Wage Subsidy Placement start date, subject to the Wage Subsidy type; see Table 7‑A: Wage Subsidy Types and Participant Eligibility Requirements for details), or on the date Employment ceases where a Wage Subsidy Placement terminates earlier than the agreed date.

The Provider must negotiate with the Wage Subsidy Employer a Wage Subsidy Period that works best for the Wage Subsidy Employer’s business, subject to the agreed duration of the Wage Subsidy Agreement. A Wage Subsidy Period can be weekly, fortnightly, monthly, quarterly, on completion, or any other timeframe as agreed by the Provider and Wage Subsidy Employer. Wage Subsidy Periods must be recorded on the Schedule. See Payments to Wage Subsidy Employers section for more information.

Providers should refer Wage Subsidy Employers to the ‘Manage Wage Subsidies’ help guide (located on the Workforce Australia website) for details on how to manage their Wage Subsidy Agreements, including submitting Documentary Evidence.

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

• Wage Subsidy Agreements will not be accepted in an offline format. Should the Provider or Wage Subsidy Employer experience difficulties using the Department’s IT Systems and/or Workforce Australia website to approve the Wage Subsidy Agreement, they must contact the Employer Hotline on 13 17 15 prior to the 28-day timeframe expiring.

7.3.3. Time requirements for approving a Wage SubsidyCopy citation · §7.3.3

In line with the policy intent of Wage Subsidies, Providers are expected to commence negotiating a Wage Subsidy Agreement with an eligible Employer prior to the Job Placement Start Date. Providers must ensure that the Wage Subsidy Agreement has been approved by the Employer in the Department’s IT Systems within 4 weeks (28 days) of the Wage Subsidy Placement commencing.

Wage Subsidy Agreements will not be approved outside of 28 days from the commencement of Employment, and Providers will not be Reimbursed for any payments made to Employers where there is not an approved Wage Subsidy Agreement in place. Providers must ensure Employers are aware of the 28-day timeframe and the consequences of not meeting it.

Providers are required to have appropriate administrative processes in place to meet the 28-day timeframe and must work with Wage Subsidy Employers to ensure that this timeframe is met. If the Department determines 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 approval the Department may take compliance action against a Provider. This includes but is not limited to delays caused by Providers:

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

• offering a Wage Subsidy to an Employer until well after Employment commenced

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

In these cases compliance action may include including directing the Provider to make Wage Subsidy payments to the Wage Subsidy Employer without reimbursement and/or blocking Outcome payments associated with the Employment position.

See Head Agreements and Schedules section for more information.

7.4. Payments to Wage Subsidy EmployersCopy citation · §7.4

The Provider must have entered into a Wage Subsidy Agreement with the Wage Subsidy Employer and all terms and conditions of the Wage Subsidy Agreement must be satisfied before the Provider can make a payment to the Wage Subsidy Employer.

Wage Subsidy payments must not exceed 100 per cent of the Participant’s wages at any point over the Wage Subsidy Placement period.

• Documentary evidence — Wage Subsidy Employers must invoice the Provider to receive a Wage Subsidy payment and submit the required Documentary Evidence to support payment (see Summary of Documentary Evidence section).

• Documentary evidence — Documentary Evidence from the Wage Subsidy Employer must confirm the Wage Subsidy Participant worked at least the minimum weekly hour requirement averaged over the Wage Subsidy Period being assessed.

7.4.1. Assessing Periods of LeaveCopy citation · §7.4.1

Where a Wage Subsidy Participant’s hours worked are less than required for the Wage Subsidy Employer to be eligible for payment, documentary evidence must also include all periods of leave taken.

Where a Wage Subsidy Participant requests and has leave approved in accordance with entitlements under a relevant Modern Award or the National Employment Standards – Fair Work Act 2009 sign-in required (sign-in required)*(*Cth), and the leave is recorded in Documentary Evidence, it can count towards the minimum average hours per week requirement. However, a Wager 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.

Refer to the Wage Subsidy Operations Guidesign-in required (sign-in required) for further details on considering approved leave when calculating payments to Wage Subsidy Employers.

• Documentary evidence — 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 either be:

• recorded on the Wage Subsidy Participant’s pay slip; or

• on a written declaration from the Employer.

7.4.2. Change of Business OwnershipCopy citation · §7.4.2

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.

7.4.3. Calculating Payments for Early TerminationsCopy citation · §7.4.3

If a Wage Subsidy Placement terminates early, Providers must calculate any outstanding payments based on the number of weeks the Wage Subsidy Participant worked for the required minimum average hours per week from the Wage Subsidy Placement start date.

If the Wage Subsidy Participant did not work the required minimum average hours per week throughout the Wage Subsidy Placement, the Wage Subsidy Employer will not be eligible to receive the full Wage Subsidy amount.

To work out the Wage Subsidy amount the Wage Subsidy Employer is entitled to, divide the total Wage Subsidy amount by the Wage Subsidy Agreement Term to calculate the weekly rate the Wage Subsidy Employer may be entitled to receive. Then multiply this amount by the number of weeks the Wage Subsidy Participant worked the minimum average number of hours per week.

Examples of how to calculate payments for early termination can be found in the Wage Subsidy Operations Guidesign-in required (sign-in required).

7.4.4. Wage Subsidy CalculatorCopy citation · §7.4.4

The Wage Subsidy Calculator is a tool that assists Providers to calculate the Wage Subsidy amount an Employer is eligible to receive, and the value of the reimbursement the Provider can claim from the Department. Relevant information recorded on the Wage Subsidy Agreement and in the Documentary Evidence, can be entered into the Calculator to confirm:

• the Wage Subsidy Placement meets the required minimum average hours per week over the duration of the Wage Subsidy Agreement, and

• Wage Subsidy payments do not exceed 100 per cent of the Participant’s wages at any point over the Wage Subsidy Placement period.

The Wage Subsidy Calculatorsign-in required (sign-in required) can be found on the Provider Portalsign-in required (sign-in required). Information about how to use the Calculator is located in the Wage Subsidy Operations Guidesign-in required (sign-in required).

7.4.5. Concurrent FundingCopy citation · §7.4.5

Under the General Terms and Conditions of the Head Agreement, Wage Subsidy Employers are required to notify Providers of any Australian Government or State or Territory government funding they receive for the Wage Subsidy Participant or placement.

Wage Subsidy Employers cannot access Wage Subsidies if they receive funding from other Australian Government, state or territory wage subsidies or similar employment program funding for the same Participant in the same Wage Subsidy Placement.

The Provider must continue to check whether the Wage Subsidy Employer is following the above requirements before making Wage Subsidy payments to the Wage Subsidy Employer.

7.4.6. Wage Subsidy Employers Not Registered for GSTCopy citation · §7.4.6

The total maximum amounts of a Wage Subsidy specified in this Guideline 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 (GST inclusive) amount. The Provider is responsible for remitting the GST inclusive amount to the Australian Tax Office.

7.5. Claims for ReimbursementCopy citation · §7.5

The Provider can only claim a Reimbursement for a Wage Subsidy payment if:

• all terms and conditions of the relevant Deed, this Guideline, the Wage Subsidy Operations Guide (where applicable) and Wage Subsidy Agreement have been met

• they have first made the relevant Wage Subsidy 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

• they have sufficient Documentary Evidence to demonstrate the above which must be uploaded at the time of claiming Reimbursement.

7.5.1. Time requirements for claiming a ReimbursementCopy citation · §7.5.1

The Department permits claims for Reimbursement to be rendered:

• after each Wage Subsidy payment is made in accordance with the Wage Subsidy Period/s recorded in the Schedule of the Wage Subsidy Agreement, or

• collectively at the end of the Wage Subsidy Placement.

Providers must submit all claims for Reimbursement no later than 56 days after the end of the Wage Subsidy Placement. This includes where a Wage Subsidy Placement terminates early.

The Wage Subsidy Head Agreement (clause 6) requires Wage Subsidy Employers to notify Providers immediately if the Wage Subsidy Participant's Employment ends prior to the Wage Subsidy Agreement end date. In accordance with this, Providers must ensure that, where a Wage Subsidy Placement has terminated early, the correct Placement end date is recorded in the Department’s IT Systems, and that claims for Reimbursement are submitted no later than 56 days from the end of the Wage Subsidy Placement.

Providers are required to have appropriate administrative processes in place to meet the 56 day timeframe. Providers 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.

Under the Head Agreement, Providers are required to make the final Wage Subsidy payment to the Wage Subsidy Employer where the Employer:

• requests the final Wage Subsidy payment, and

• supplies the required Documentary Evidence for that payment to the Provider within 28 days from the end of the Wage Subsidy Placement.

Providers may choose to make the final Wage Subsidy payment to the Wage Subsidy Employer where 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.

7.5.2. Managing Employment Fund Credits for Ended Workforce Australia Services Wage Subsidy AgreementsCopy citation · §7.5.2

When a Provider creates a Workforce Australia Services Wage Subsidy Agreement, the total Wage Subsidy amount is committed out of the relevant Site's Employment Fund notional bank balance (refer to the Employment Fund Chapter for further information). This commitment is held to ensure there is funding available to Reimburse all Wage Subsidy Agreement commitments.

A Provider should return committed Employment Fund credits to the relevant Site’s notional bank balance when:

• a Draft Wage Subsidy Agreement does not proceed to approval, or

• a Wage Subsidy Agreement is ended, and

  • all Reimbursements from the Department for Payments made to the Wage Subsidy Employer have been received, and

  • the Provider is certain that no further claims for Reimbursement will be made against that particular Wage Subsidy Agreement.

By agreeing to a return of Employment Fund credits, the Provider is declaring that they will make no further claims for Reimbursement against that Wage Subsidy Agreement (including manual claims).

Employment Fund credits that are returned cannot be reinstated.

• System step — Providers should return credits to the Provider's Site notional bank balance and end Draft Agreements that are no longer required with the reason ‘Created in Error’.

  System step — Note: the Summary and Value/Duration pages of the WASA01 - Workforce Australia Services Wage Subsidy Agreements Qlik App can help Providers monitor Agreements eligible for a return of credits to the Provider's Site notional bank balance.

• System step — The Provider selects ‘Return Credits’ and confirms selection by selecting ‘Yes’ when the notification window pops up.

7.5.3. Recovery of Reimbursement Claims PaidCopy citation · §7.5.3

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, including, but not limited to, breaching clause 12 of the Head Agreement

• 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 activity that may bring, or could be perceived to bring, the use of Wage Subsidies or the Commonwealth of Australia into disrepute.

The Department may also recover any Reimbursement made to the Provider where the Department determines, at its absolute discretion, that the Provider has not met the requirements of the Deed, this Guideline and/or the Wage Subsidy Operations Guide.

7.6. Managing Wage Subsidy Agreements for Wage Subsidy ParticipantsCopy citation · §7.6

7.6.1. Supporting Participants on Wage SubsidiesCopy citation · §7.6.1

Providers are expected to provide Post-Placement Support to Wage Subsidy Participants and Wage Subsidy Employers to maximise the success of Wage Subsidy Placements, including after a Wage Subsidy Participant is Suspended or Exited from a Provider’s Caseload.

Providers should immediately advise the Department if a Wage Subsidy Participant reports any incidents of inappropriate or unsafe workplace behaviour and follow the appropriate departmental process and protocols.

7.6.2. Managing Wage Subsidy Agreements for Transferred ParticipantsCopy citation · §7.6.2

When a Wage Subsidy Participant transfers to another Provider, the gaining and outgoing Providers must ensure both the Participant and Wage Subsidy Employer continue to be supported.

A Wage Subsidy Agreement must remain with the original Provider if the Participant transfers to another Provider, including if the Provider is exiting the market completely, unless otherwise Directed by the Department.

7.7. Summary of Documentary EvidenceCopy citation · §7.7

Providers must obtain, upload and retain sufficient Documentary Evidence which demonstrates the Wage Subsidy Participant was Employed by the Wage Subsidy Employer in the Wage Subsidy Placement in accordance with the terms and conditions of the Deed, Guideline, and Wage Subsidy Agreement to process a Wage Subsidy payment to an Employer and to claim Reimbursement from the Department.

7.7.1. Wage Subsidy AgreementsCopy citation · §7.7.1

For all Wage Subsidies, a Wage Subsidy Agreement, linking Vacancy, Employer and Placement details, must be entered into the Department’s IT Systems and approved via the Wage Subsidy Employer's Workforce Australia Online for Business account.

For Workforce Australia Services Wage Subsidies, the Wage Subsidy Agreement Schedule must also include the agreed:

• duration of the Wage Subsidy Placement

• required minimum average weekly hours, and

• maximum amount of the Wage Subsidy being offered.

The above terms are not negotiable for Youth Bonus Wage Subsidy Agreements and the Department's IT Systems will pre-populate this information.

See Head Agreements and Schedules for more information.

7.7.2. Evidence from Wage Subsidy Employers – Participant EmploymentCopy citation · §7.7.2

Documentary Evidence must confirm the Wage Subsidy Employer's details (including name and ABN) and the Wage Subsidy Participant's name. Documentary Evidence must include:

• evidence to confirm the Wage Subsidy Participant's Employment which demonstrates the hours worked (including any periods of approved leave taken) and wages paid (including the relevant Award the Participant was paid under) for the entire Wage Subsidy Period, which may be in the form of (but is not limited to):

  • a completed Wage Subsidy payment templatesign-in required (sign-in required) (Refer to the Wage Subsidy Operations Guidesign-in required (sign-in required)), or

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

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

• 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 payment templatesign-in required (sign-in required), provided via email or included in the statutory declaration, and

  • evidence they disclosed to all host businesses the Wage Subsidy Participant is placed with that they were receiving a wage subsidy. This disclosure must include details of the sender and recipient, and demonstrate it was sent during the Wage Subsidy Participant's placement with the host business. Additional details can be found in the Wage Subsidy Operations Guidesign-in required (sign-in required), and

• where a Wage Subsidy Participant's Employment ends prior to the Wage Subsidy Placement end date, a written statement of the reason why Employment ended.

Providers may request the Employer provides additional Documentary Evidence relating to a Wage Subsidy Placement, Wage Subsidy Participant, and/or Wage Subsidy Agreement. In requesting additional Documentary Evidence the Provider must ensure the Employer understands what evidence will be required, the purpose of the evidence, and the timeframe for providing the evidence, prior to approving the Wage Subsidy Agreement.

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 Wage Subsidy Employers, as per the Employer’s obligations under the Wage Subsidy Agreement.

7.7.3. Evidence from Provider – Claims for ReimbursementCopy citation · §7.7.3

Providers must ensure Documentary Evidence demonstrates that payment was made to the Wage Subsidy Employer before claiming a Reimbursement. From 1 November 2025 Providers must upload all Documentary Evidence against the Wage Subsidy Agreement via the Reimbursements screen of the Department's IT Systems at the time of claiming Reimbursement.

As per Chapter 3.6.2 of the Workforce Australia - Part A: Universal Guidelines, Tax File Numbers must be redacted from any pay slips prior to being uploaded into the Department's IT Systems as Documentary Evidence to support Wage Subsidy payments.

Documentary Evidence may be in the form of a:

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

• tax invoice and corresponding receipt from the Wage Subsidy Employer, or

• tax invoice from the Wage Subsidy Employer and a remittance advice, or

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

The 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.

While not mandatory, Providers are encouraged to include a copy of their results from the Wage Subsidy Calculator when uploading evidence. Refer to the Wage Subsidy Operations Guidesign-in required (sign-in required) for instructions on how to obtain these.

Providers are also encouraged to include other relevant evidence (correspondence or file notes) to support payment integrity activities, particularly if there were unusual or complex circumstances that require explanation. Documentary Evidence uploaded will be used to assess Providers' compliance with the Guideline requirements where a claim is selected for Continuous Assessment of Payment Integrity (CAPI) or other program assurance activities. Providers should ensure the evidence uploaded is sufficient for these purposes.

Attachment 7A. Wage Subsidy Types and Participant Eligibility Requirements

The list below reflects how the hierarchy of Wage Subsidies is applied (in descending order) in the Department’s IT Systems. A Participant can attract one Wage Subsidy at a time.

Indigenous Australians are eligible immediately on commencement in employment services, excluding Workforce Australia Online. They must be flagged in the Department’s IT Systems as Indigenous from registration with Services Australia – Centrelink, or the Department’s Job Seeker Classification Instrument.

Notes:

*The period of continuous provider-based employment services can include participation in Workforce Australia Services, ParentsNext, Transition to Work, Parent Pathways, Inclusive Employment Australia, Remote Australia Employment Services, Disability Employment Services, and the Community Development Program. A Participant’s eligibility will not be affected if they Exit and return to the service within an allowable break of 13 weeks.

**Youth Bonus Wage Subsidy – if the Participant loses the wage-subsidised job through no fault of their own within 6 months of starting, they may return to a Provider and immediately be eligible for another YBWS or a Workforce Australia Services Wage Subsidy should their eligibility change.