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More money for employers under jobstart

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H igher E ducation and E mployment S ervices

Federal Government wage subsidies for employers who take on unemployed people under the JOBSTART program increase from tomorrow (1 September), the Minister for Higher Education and Employment Services, Peter Baldwin said today.

Speaking at an employment forum in Geelong (Vic) Mr Baldwin said improvements to the JOBSTART program included:

• significant increases to some rates of weekly subsidy payable to employers, • significant increases in the number of JOBSTART employees an employer can have at the one time, and • more rapid payment of wage subsidies to employers.

'These changes and the boost in funding for the JOBSTART program announced in the Budget will help create jobs for up to 104,000 people over the next 12-months," Mr Baldwin said.

Together with other Federally funded employment programs - including Job Clubs, Job Search, JOBTRAIN, SkillShare and mobility assistance - this will provide assistance for up to over the next year," Mr Baldwin said.

Mr Baldwin said that JOBSTART funding nationally had been increased by more than 100 per cent over last year's expenditure of $117.2 million, bringing funding for 1992-93 to $237 million.

"JOBSTART provides employers taking on an eligible unemployed person with a weekly wage subsidy for set periods up to 26 weeks," Mr Baldwin said.

Increased Subsidy Rates

"Increases have been made to the weekly subsidy rate payable to employers who take on people who've been out of work for long periods or who are especially disadvantaged," Mr Baldwin said.

"For example, a person unemployed for two years and registered with the CES, will be eligible for 26 weeks of subsidy at the new rate of $270 per week, up from $230.

This subsidy should contribute a high proportion of the cost of employing an eligible person. Other subsidy increases for people unemployed for 12 months will also assist employers in recruiting staff."

T H E H O N . P E T E R B A L D W I N M . P .

B58 31/8/92



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The new subsidy rates (from 1 September 1992), will also apply for set durations as set out in the following table:

Age Group

W E 6 m ths+ W E 12 m ths+

or disadvan tage

W E 24 m ths+

S u bsidy D u ration S et A t:

12 W eeks 18 W eeks 26 W eeks

15-17 $70 per w eek $110 per w eek N /A

18+ $160 per w eek $220 per w eek $270 per w eek

Relaxed Eligibility Rules

"The number of JOBSTART employees that an employer can have under the program at any one time has been relaxed, enabling smaller business to have greater participation in the program," Mr Baldwin said.

"Employers who currently employ up to 10 employees will be able to recruit up to a further 10 JOBSTART employees (ie. in the ratio of 1 to 1), to a total of 20 employees.

"Those employers employing more than a total of 20 people will be able to recruit 10 JOBSTART employees plus 25% for all employees in excess of 20.

Faster Payment to Employers

"Once employers take on a person under the JOBSTART program, new payment processes will enable more rapid payment of the wage subsidy to the employer.

Other improvements mean employers will be able to claim these subsidies at four week intervals as well as take on additional people under subsidy.

"JOBSTART is a very economical way of getting staff who are keen to get back into the workforce," Mr Baldwin said.

Media Enquiries: Sarah Taylor Minister Baldwin's Office (06) 277 7540