The $4 billion JobMaker hiring credit is a key part of the government’s economic response to the COVID-19 pandemic.
The treasury department stated that youth unemployment was particularly impacted by restrictions imposed as part of the health response to the COVID-19 pandemic, with the JobMaker hiring credit specifically designed to encourage businesses to take on additional young employees and increase employment.
Under the scheme, businesses are encouraged to take on a younger workforce, with JobMaker hiring credit providing businesses that hire an unemployed person aged 16-29 with a $200 weekly wage subsidy, which reduces to $100 per week for hiring people aged 30-34.
However, Mr Frydenberg told the media there are major protections in place to protect the jobs of older Australians.
“There are significant legislative protections in place in terms of the legislation that went through the Parliament last night,” he explained on national television.
Mr Frydenberg said there are strict rules in place to protect older Australians from being discriminated against from their employers.
“There can’t be any contrived schemes to get around the rules in this program,” the Treasurer stated.
“The Tax Office will come down on those who try that with penalties attached.
“We are very much focused in putting in place the protections in this program. It is embedded in the legislation.”
However, the unions argue that the government has created a program which has no dispute resolution mechanism and without adequate safeguards to prevent employers from replacing existing staff with new JobMaker subsidised staff.
“By opposing these amendments, the government has made it clear that the aspects of the bill which will risk the jobs, hours and pay of working people are not bugs but features. This legislation is designed to allow businesses to bring in more insecure workers,” ACTU president Michele O’Neil said.
“The refusal of this government to invest in saving existing jobs or creating secure work will delay and extend the recovery and cause significant financial hardship for working people.”
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