Treasury warns JobMaker could pay bosses to cut jobs

The JobMaker scheme has raised concerns that it would discriminate against older people in the jobs market (Bigstock)

Employers could sack experienced employees, replace them with workers earning just a third of the salary and get a taxpayer-funded grant to do it, previously secret Treasury documents have revealed. Source: ABC News.

Treasury’s own examples, obtained by the ABC using the Freedom of Information (FOI) process, show bosses could sack a full-time employee on $75,000 and replace him or her with three part-time staff on wages between $22,500 and $30,000, while remaining in front financially – thanks to the generous JobMaker hiring credit.

The $4 billion two-year scheme, revealed in the 2020 Budget, pays employers up to $200 a week for creating new jobs for people aged 16-to-29 years who are on JobSeeker, Youth Allowance or the Parenting Payment. (It is $100 a week for 30-to-35-year-olds.)

JobMaker is intended to create new jobs – the "headcount" of the business must increase – but the scheme immediately created concerns it would discriminate against older people in the jobs market.

In his budget speech, the Treasurer claimed the $4 billion policy would “support” 450,000 jobs. Treasury has been forced to admitted that does not mean JobMaker will actually create that many new jobs.

In response to questions about the examples, a statement from Treasury contended that “any JobMaker Hiring Credit payments received by employers will, at most, only offset the increased payroll from the eligible additional new employees”, and that there was “no financial windfall” to employers if they replaced one full-time employee with three part-time employees.


JobMaker could pay bosses to cut wages and jobs, warns Treasury (By Daniel Ziffer, ABC News)

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