Employer Wage Subsidies 2025
Last Updated: August 28, 2025 | Maximum Subsidy: $10,000 per eligible hire
Overview
The Australian Government offers substantial wage subsidies to employers who hire eligible job seekers through the Workforce Australia program. These subsidies help offset initial employment costs while supporting Australians into sustainable work.
Quick Reference
| Subsidy Type | Amount | Duration | Minimum Hours |
|---|---|---|---|
| Standard Wage Subsidy | $10,000 | 6 months | 20 hrs/week |
| Housing Construction (HCAP) | $10,000 | Over apprenticeship | Full-time |
| Indigenous Employment | $10,000 | 6 months | 20 hrs/week |
Eligibility Criteria
For Employers
✅ Must have:
- Valid ABN
- Workers compensation insurance
- Ability to provide ongoing employment
- Compliance with Fair Work standards
✅ Must offer:
- Minimum 20 hours per week average
- Award wages or above
- Position expected to continue beyond 6 months
For Job Seekers
Eligible job seekers include:
- Long-term unemployed (6+ months)
- Youth (under 25)
- Mature age (50+)
- Indigenous Australians (immediate access)
- People with disability
- Parents returning to work
- Ex-offenders
Payment Structure
Standard Payment Schedule
Documentation Required
- Employment contract
- Payslips/timesheets
- Bank details
- Signed wage subsidy agreement
Special Provisions
Indigenous Employment
Immediate Access: Indigenous job seekers can access wage subsidies immediately without the standard 6-month waiting period.
Benefits include:
- No waiting period
- Same $10,000 subsidy amount
- Cultural support services
- Connection to Indigenous specialists
Housing Construction Apprenticeship Program (HCAP)
For construction industry employers:
| Milestone | Payment |
|---|---|
| 6 months | $2,000 |
| 12 months | $2,000 |
| 24 months | $2,000 |
| 36 months | $2,000 |
| Completion | $2,000 |
| Total | $10,000 |
Eligible trades:
- Carpentry and joinery
- Plumbing
- Electrical
- Glazier
- Locksmith
- Roof plumbing/tiling
How to Apply
Step 1: Contact Provider
Call 1800 805 260 or find your local Workforce Australia provider
Step 2: Register Vacancy
Work with provider to define position and identify candidates
Step 3: Interview
Provider pre-screens candidates and arranges interviews
Step 4: Sign Agreement
Complete wage subsidy agreement with required documentation
Step 5: Start Employment
Begin onboarding and maintain contact with provider
Step 6: Claim Payments
Submit evidence at 13 and 26 weeks to receive payments
Calculator
Potential Savings Calculator
Example Calculation:
- Hiring 1 full-time employee: $10,000 subsidy + ~$5,000 saved recruitment/training = $15,000 benefit
- Hiring 5 eligible employees: $50,000 subsidies + ~$25,000 savings = $75,000 total benefit
Frequently Asked Questions
General Questions
Can small businesses access wage subsidies? Yes, businesses of all sizes can access subsidies if they meet eligibility requirements.
Are wage subsidies taxable? Yes, subsidies are considered taxable income for businesses.
Can I claim multiple subsidies? Yes, there’s no limit on the number of subsidized positions per employer.
Payment Questions
What if the employee leaves before 6 months? You receive proportional payments for completed milestone periods only.
Do I need to repay if employment doesn’t continue? No repayment required if you’ve met agreement conditions during the subsidy period.
How quickly are payments processed? Typically within 28 days of reaching milestones and submitting documentation.
Eligibility Questions
Can I use subsidies for part-time positions? Yes, if the position averages at least 20 hours per week over 6 months.
Can I hire family members? Generally no, subsidies aren’t available for family members or existing connections.
Are casual employees eligible? May qualify if meeting ongoing employment and minimum hour requirements.
Additional Support Programs
Skills and Training
- Australian Apprenticeship Support: Up to $25,983 in loans
- Living Away From Home Allowance: Up to $120/week
- Priority Hiring Incentive: Extended to December 31, 2025
Coming November 2025
Inclusive Employment Australia launches with:
- Enhanced disability employment support
- No time limits on assistance
- Workplace modifications funding
- Expanded eligibility criteria
Resources and Contacts
Government Websites
Contact Numbers
- Workforce Australia: 1800 805 260
- Employer Hotline: 1800 40 20 40
- Indigenous Employment: 1800 553 679
- Disability Employment: 1800 464 800
Next Steps
- Assess your hiring needs - Identify positions suitable for supported job seekers
- Contact employment services - Schedule consultation with local provider
- Prepare documentation - Update position descriptions and gather business details
- Begin recruitment - Work with providers to find suitable candidates
Ready to start? Contact Workforce Australia on 1800 805 260 to discuss wage subsidy opportunities for your business.