Clik here to view.
The Victorian Government has boosted the Back to Work Scheme to assist Victorian job seekers and employers looking to hire new staff.
From 1 November 2015, employers will receive a significant increase in government funding of up to $12000* when they hire long term unemployed workers (now 26 weeks unemployed, reduced from 52 weeks), and up to $5000 for retrenched workers, out-of-trade apprentices, and young people aged between 15 and 25 who have been unemployed for three months or more.
The eligibility criteria for the scheme has been expanded to include new apprentices and trainees as well as unemployed people who are disability and sole parent pensioners, members of drought affected farm households, people who identify as Aboriginal and/or Torres Strait Islander, refugees, social housing residents and young people in or exiting out-of-home care or who are a current or recent youth justice client.
Employers are able to elect to have this funding redirected, for example, to services supporting disadvantaged job seekers with placement and employability skills support. Up to $4000 for training will also be provided to employers who provide accredited training to a new employee. This will be on top of any other payment received.
*More details of the scheme can be found on the notice in the Victoria Government Gazette.
What are the key changes to the Back to Work Scheme?
The Back to Work Scheme is being expanded to provide better support to employers who employ disadvantaged job seekers.
The changes include:
- increased payment amounts,
- additional payments for accredited training,
- additional groups of employees who will attract the payments, and
- shorter waiting periods for some groups.
What are the changes to the payment amounts?
Payments to employers hiring full-time workers will be increased as follows:
- For young unemployed and retrenched workers, employers can claim $5,000 (previously $1,000).
- For long-term unemployed workers, employers can claim $12,000 (previously $2,000).
- Employers hiring new part-time employees can claim 75 percent of the above payments.
What additional payments will be provided for accredited training?
Employers that provide accredited training to new employees in any eligible category will receive an extra payment of up to $4,000.
What additional groups of employees will attract the payments?
The category of eligible employees is being expanded to include apprentices and trainees, Aboriginal and Torres Strait Islander persons, disability pensioners, drought-affected farm households, refugees, social housing tenants, sole parent pensioners, youth justice clients and young persons in or exiting out of home care.
What other changes are being made?
Persons who are unemployed and seeking work for 26 weeks or more are now considered long-term unemployed workers (previously 52 weeks).
Are there any changes to the process to make a claim?
The process for making a claim for the existing category of eligible employees (i.e. young unemployed persons, long-term unemployed persons, retrenched workers and out of trade apprentices) is unchanged. There will be a new process for making a claim for the expanded category of eligible employees and to claim accredited training costs.
When do the changes to the scheme commence?
The changes commence for any eligible employee (including the expanded categories of eligible employee) that commence employment with an eligible employer on or after 1 November, 2015.
Full details of the new payment amounts, the expanded category of eligible employees and other changes will be detailed in the revised Eligibility Criteria, which have been Gazetted on 29 October 2015.
Claims can be made here.