Inclusive Employment Australia Wage Subsidy 008-04030040
This document provides information about the Inclusive Employment Australia Wage Subsidy for job seekers with disabilities. The objective of the Department of Social Services (DSS) Inclusive Employment Australia Wage Subsidy help place participants into sustained employment. Under the Inclusive Employment Australia Wage Subsidy, money is paid by Inclusive Employment Australia (IEA) providers to employers to subsidise wages for people with disabilities.
Referrals for Inclusive Employment Australia (IEA)
As a general rule, a job seeker is eligible for IEA if they have a disability, injury or health condition and have an assessed work capacity of less than 30 hours per week.
Generally, a referral cannot take place unless IEA is recommended in the customer's most recent, valid Job Capacity Assessment (JCA) or Employment Services Assessment (ESAt). Following the ESAt/JCA, Assessors will generally refer customers directly to appropriate services such as IEA and will note these details on their report.
See Eligibility criteria for participation with Inclusive Employment Australia (IEA) for more details..
It is up to the individual IEA provider to determine whether a wage subsidy is appropriate or not.
Participant eligibility for wage subsidy
To be eligible for payment under the Inclusive Employment Australia Wage Subsidy, a worker must have received at least 6 months of continuous provider led employment services in:
- Inclusive Employment Australia (IEA) or Disability Employment Services (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
In addition, the job seeker must not:
- have an outstanding workers' compensation claims against the current employer
- have a business or family relationship with the Employer, or
- be accessing any other Commonwealth, State or Territory Government Wage Subsidy that overlaps with the Inclusive Employment Australia Wage Subsidy
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 IEA for participants who have received 12 months support through Workforce Australia Online.
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.
Placement eligibility for Wage Subsidy
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
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), or
- be funded by another Commonwealth, State, Territory, or Local Government initiative, including the Disabled Australian Apprentice Wage Support Program
Payment of wage subsidy
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
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
Customers who want more details on this subject should be advised to contact a JobAccess Adviser directly on 1800 464 800 or through the JobAccess website.
The Resources page contains a link to the JobAccess website.
Related links
Job Capacity Assessment (JCA) Referral
Request an Employment Services Assessment (ESAt)
Providing services to customers with disabilities
Employment assistance for people with a disability
Eligibility criteria for participation with Inclusive Employment Australia (IEA)
Disabled Australian Apprenticeship Wage Support