IWS Guidelines Version 10 - July 2009 Effective 1 July 2009
Indigenous Wage Subsidy Guidelines
Guidelines Version 1 Guidelines Version 2 Guidelines Version 3 Guidelines Version 4 Guidelines Version 5 Guidelines Version 6 Guidelines Version 7 Guidelines Version 8 Guidelines Version 9 Guidelines Version 10
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IWS Management Guidelines Version 10 Effective 1 July 2009
The objective of the Indigenous Wage Subsidy (IWS) program is to provide an incentive to employers to provide ongoing employment for eligible Indigenous job seekers.
The program provides a retrospective wage subsidy to employers of eligible Indigenous job seekers after 13 and 26 weeks of employment of: Up to $6600 (including GST) for full-time positions Up to $3300 (including GST) for part-time positions (of at least 15 hours per week).
For positions with job start dates from 1 July 2009, the subsidy will comprise two components: A set rate subsidy of $4400 for full-time positions and a retention bonus of $1100 after 13 and 26 weeks of employment and
A set rate subsidy of $2200 for part-time positions and a retention bonus of $550 after 13 and 26 weeks of employment.
Career Development Assistance of up to $550 (including GST) is available to employers with IWS participants (with job start dates from 1 July 2009) who enrol in an accredited training course, obtain a ticket (such as Stop/Go), or Licence (such as forklift) within their first 26 weeks of employment.
For further information regarding accredited training courses please visit www.ntis.gov.au.
For positions with job start dates prior to 1 July 2009, the previous Wage Assistance guidelines apply.
The Department reserves the right to decline any application for IWS funding that in the view of the delegate does not comply with these guidelines.
Indigenous Employment Line The Indigenous Employment Line (1802 102) is responsible for handling initial enquiries from job seekers, employers, Job Services Australia providers, government agencies including Centrelink, and from members of the public.
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IWS Guidelines Version 10 - July 2009 Effective 1 July 2009 2. Related programs
Community Development Employment Projects (CDEP)
The Community Development Employment Projects (CDEP) program provides activities which develop participants’ skills and improve their employability in order to assist them to move into employment outside the program and to meet community needs. The CDEP program is managed and administered by the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA).
CDEP providers are eligible to apply for IWS for job seekers employed in their business ventures. Eligible job seekers are those that have been exited from CDEPManager (ie. Job seekers continuing to participate in CDEP and who are in receipt of a CDEP participant payment are not eligible).
CDEP Work Experience Subsidy (CWES)
The aim of the CDEP Work Experience Subsidy (CWES) program is to increase employment for new CDEP participants by supporting employers, through a wage subsidy, who provide paid work experience to participants.
IWS cannot be paid in conjunction with CWES. However, if the CWES placement becomes a permanent position, the employer may be eligible for IWS if the job seeker meets eligibility requirements.
For more information on CWES refer to www.deewr.gov.au/indigenous
Job Services Australia
Job Services Australia providers are strongly encouraged to use IWS on behalf of their Indigenous clients, in addition to any other incentives or expenditures they decide to make from the Employment Pathway Fund. The combined subsidy cannot exceed 100 per cent of the gross wage of the IWS participant. Job Services Australia providers are also eligible to claim IWS if they employ eligible job seekers in their own organisations.
IWS Management Guidelines Version 10 Effective 1 July 2009
Reformed Indigenous Employment Programs (IEP)
An employer can not receive wage subsidy funding for an employee under an IEP contract and the IWS program concurrently.
Where an employer, or a third party, has an IEP Contract which includes a wage subsidy component, IWS placements must be separate from placements under the IEP Contract and must not be receiving IEP wage subsidy funding.
Where the IEP Contract does not include wage subsidy funding, IWS can provide wage subsidies for IEP Contract participants.
Other Commonwealth and State/Territory programs
IWS will not be paid where the placement is supported by another Commonwealth, State or Territory wage subsidy program.
To be eligible for IWS, a job seeker must be: Aboriginal and/or Torres Strait Islander, that is a person of Aboriginal and/or Torres Strait Islander descent; who identifies as an Aboriginal and/or a Torres Strait Islander; and is accepted as such by the community in which he/she lives or has lived and
Currently unemployed and actively looking for work or Was participating in CDEP, and consequently not receiving an income support payment or
Eligible for Disability Employment Services, and registered as unemployed with Centrelink and
Registered with Centrelink and receiving an eligible allowance or If under 21 and not receiving an allowance, registered with Centrelink or a Job Services Australia provider.
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Positions are eligible if they: Involve a normal employer/employee relationship subject to the applicable industrial arrangement and
Are ongoing full-time, as defined in the applicable industrial arrangement, or for a minimum of 35 hours per week if not specified or
Are ongoing part-time and provide a minimum of 15 hours work per week, every week, for the 26 weeks of the subsidy period and
Are expected to be ongoing at the time of application, that is, the employer knows of no reason why the position will not continue indefinitely.
Positions which are not eligible
Positions which are not eligible are those: Which do not guarantee the employee a regular weekly wage (eg commission-based positions, sub-contract positions and positions paid at "piece rates") That are not expected to be ongoing (vacant positions created in community or charitable organisations solely or substantially as a result of grants from Commonwealth), State/Territory or Local Government are not likely to be eligible on this basis) That are paid work experience Receiving wage subsidy funding from Commonwealth, State/Territory or Local Governments Self-employment or sub-contracting opportunities In private, household employment In religious occupations Where the employer is attempting to ‘backfill’ an existing IWS placement that has been suspended because of a breach of an IWS Agreement Of a type or character that would be likely to bring the program or the Commonwealth into disrepute, such as vacant positions in the sex industry, or involving nudity or illegal activities That otherwise do not meet the objectives of the IWS program.
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Employers in the private, public or community sector who offer ongoing employment of at least 15 hours per week, every week, for the subsidy period under a normal employer/employee relationship are eligible to receive IWS.
Indigenous prisoners are eligible for IWS immediately on release from prison, despite not being active job seekers and not being on eligible income support. A letter from prison or parole authorities is proof of just released status. Indigenous prisoners on ‘return to work’ and ‘early release’ programs who are Fully Eligible Participants (FEP) with a Job Services Australia provider are eligible for IWS.
Concurrent placements not eligible
Job seekers are eligible for one IWS placement at a time. Participants working part-time hours are not eligible for concurrent part-time placements.
Time period over which subsidy is available
Job seekers are eligible for a total of 26 weeks program assistance in any period of 18 months, which may be used as a continuous period, or as blocks of weeks making up 26 weeks of noncontinuous program assistance. Where a job seeker receives IWS subsidy in non-continuous blocks of time, subsidy will be paid at the full rate for no more than 26 weeks.
Employers may only claim up to one full 26 week subsidy for an individual employee that has been continuously in their employment. For example, further IWS will not be provided for employees who have been terminated by their employer after receiving their full 26 subsidy and rehired at a later date.
An employer may rehire an employee for whom they have received less than 26 weeks of IWS over a period of 18 months and may re-apply for the remainder of the 26 week period of subsidy so long as the 18 month period is still running, another employer has not exhausted the IWS subsidy for that employee in the meantime and the other eligibility requirements are met.
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Expiry of the 18 month period
The 18 month period during which a job seeker is eligible for a total of 26 weeks program assistance expires 18 calendar months after the commencement date of the first position for which subsidy was paid.
Where an employee: Has been working for the applicant employer for a period three months or less in a position that would not have been eligible for IWS (eg non-ongoing, or less than 15 hours per week) and is moved by the employer to a position that could attract IWS (eg ongoing part or full-time) or Has been undertaking casual work and is not in receipt of benefits at the date of commencing work in an eligible position but has been in receipt of benefits in the recent past three months and is likely to be again in the near future if the employee continues in casual work the employer’s application for IWS will not be rejected solely on the basis that the employee is a not an active job seeker. The employee’s Centrelink registration must reflect the employee’s and employer’s advice as to when the job was commenced and the employer needs to be able to demonstrate the material change to the position through payroll information or similar documentation.
The first 4 weeks of the placement
Where a placement is terminated for any reason during the first four weeks of the placement, IWS is not paid and the period of the placement is not counted as part of the job seeker’s 26 week assistance limit.
Termination during this period will not affect future access to the program for either the job seeker or the employer.
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IWS cards are marketing tools only. Job seekers do not have to have a current IWS card to be eligible for IWS. Eligibility is based on the job seeker’s status as Indigenous, unemployed and registered as looking for work.
Eligible job seekers can be issued with an IWS Card either: by Centrelink for initial issue and/ or Centrelink or a Job Services Australia provider for replacement cards or additional employer cards, or if under 21 years of age and not in receipt of income support, by either Centrelink or Job Services Australia providers for initial and subsequent issue.
Host Employment Agreements
An employer that has a host agreement with a CDEP provider is ineligible to apply for IWS. However, if the CDEP provider is scheduled to close, the host employer can submit an application for IWS to the Department for consideration.
Special conditions for Labour Hire Companies and Group Training Organisations (GTOs)
For Labour Hire Companies and Group Training Organisations (GTOs) to be eligible for IWS, they must: Be the employer of the employee and employ them on a continuing basis Be responsible for the payment of wages, deducting tax and all associated on-costs of employing the employee Advise the host employer that Department officers are authorised to visit the IWS employee's workplace to monitor the progress of the employee and monitor compliance with the Agreement Visit the host employer on a regular basis to monitor the progress of the IWS employee.
Permanent employment in the Australian Public Service (APS)
IWS may be payable where an eligible job seeker is successful in obtaining permanent appointment to an APS vacancy. The APS agency would need to apply for IWS in the normal way.
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Employers that are to be excluded from receiving IWS
Employers that are to be excluded from receiving IWS are those who: Have had their payments withheld during the investigation of a breach of the IWS Agreement or have had an IWS Agreement terminated Are or have been the subject of substantiated complaints by job seekers and/or other interested parties, which are being or have been investigated by the Department or relevant State/Territory authorities or Have a history of terminating IWS placements shortly after the completion of the 26 week period.
The delegate may need to consider whether it would be an appropriate and defensible use of taxpayer's money and in the spirit of the guidelines to grant IWS to that employer. The delegate may also need to consult the Department’s Legal Branch in making this assessment.
Conditions of employment
The job seeker must be employed under a legal industrial arrangement, made under Commonwealth, State or Territory law for example: An Award or A collective agreement.
If an employer is unsure about the appropriate terms and conditions for the employment of the job seeker, they should contact the relevant industrial relations authorities for advice.1
Indigenous Wage Subsidy Applications Employers must use the IWS Application and Agreement form. The form is completed by the employer and is forwarded to the Department for approval. Forms can be obtained from the Department or from the Indigenous Employment Line. Employers can also download the Application and Agreement form from www.deewr.gov.au/indigenous .
Note: An “industrial arrangement” means a legal instrument, complying with applicable Commonwealth, State or Territory law, which regulates the terms and conditions of employment of employees working in the particular position or a similar position at the workplace. 9 IWS Management Guidelines Version 10 Effective 1 July 2009
Employers can lodge applications by email to firstname.lastname@example.org or fax to 02 6276 9617, or by post to: Indigenous Wage Subsidy Indigenous Employment Program Branch Department of Education, Employment and Workplace Relations GPO Box 9879 Canberra City ACT 2601
The employer must lodge the IWS Application and Agreement form within 28 days from the employee’s commencing the position.
When the delegate is satisfied that all reasonable measures have been taken to verify the eligibility of the job seeker, the job and the employer, he/she will approve the application.
The employer will be notified by letter that the application has been approved or rejected (and will be provided the reasons for rejection).
The delegate will endeavour to approve or reject all routine, fully completed applications within 28 days of their receipt.
Review of Decisions
If any of the effected parties wish to have a decision reviewed, in particular a rejected application, the employer, employee or a Job Services Australia provider involved in the placement must lodge a letter of appeal outlining any mitigating circumstances they believe the delegate should take into account to:
Indigenous Wage Subsidy Indigenous Employment Program Branch Department of Education, Employment and Workplace Relations GPO Box 9879 Canberra City 2601 or by fax to (02) 6276 9617
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A written request must be lodged with the National Office of the Department within 28 days of the advice of the decision. The application will be reviewed by an officer not involved in the original decision, and the employer will be notified of the outcome within 20 working days.
Employers can claim IWS payments either as: Two payments after 13 weeks of employment and 26 weeks of employment or One payment after 26 weeks of employment.
IWS Retention Bonus
Employers of eligible Indigenous job seekers with a job start date from 1 July 2009 are entitled to a Retention Bonus if employees are still employed after 13 and 26 week of employment.
This bonus is paid upon receipt of the IWS Claim for Payment form providing sufficient evidence of an employee’s continued employment, and is paid at a rate of $1100 (including GST) at 13 and 26 weeks of employment for full-time participants, and $550 (including GST) at 13 and 26 weeks of employment for part-time positions.
Career Development Assistance
Employers of eligible Indigenous job seekers with a job start date from 1 July 2009 may receive a reimbursement of up to $550 to access accredited training, obtain a ticket (such as Stop/Go), or Licence (such as forklift). The training must commence during a participant’s IWS placement, that is, in the first 26 weeks of employment.
Career Development Assistance will be paid to the employer following submission to the Department of an invoice. For further information regarding accredited training visit www.ntis.gov.au.
Where funding for accredited training from the Employment Pathway Fund (EPF) is provided to an employer or the employee is participating in the Productivity Placement Program, the employer is not eligible to claim additional Career Development Assistance.
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For IWS positions where the period of employment does not continue to 26 weeks, IWS is payable on a pro-rata basis upon receipt of a Claim for Payment form with sufficient details. This pro-rata payment is calculated on the subsidy amount of up to $4400 (including GST) for full-time participants, and up to $2200 (including GST) for part-time positions, and does not include Retention Bonuses. Subsidies will be calculated as the number of days worked during the claim period multiplied by the appropriate daily rate.
To be eligible for pro-rata payments, the employee must have worked at least 20 working days. Pro-rata payments for full-time positions are calculated at $33.85 (including GST) per day. For part-time positions of a minimum of 15 hours but less than 35 hours per week, every week, prorata payments are calculated at $16.92 (including GST) per day.
For positions which cease before a milestone, the employer is not eligible for that Retention Bonus payment.
If the level of IWS applicable to the position would exceed the gross rate of pay determined under the applicable industrial arrangement, the subsidy paid is to be no more than the wage paid.
IWS and job seeker income support
IWS is not payable for any period where the employee is in receipt of: Full rates of Newstart or Youth Allowance or Any amount of CDEP allowance, other than CDEP leave allowances, where the CDEP organisation verifies that the leave allowance is properly payable and will not continue for more than 2 months.
The employee must declare on the claim form that, if they are currently in receipt of income support payments, they will inform Centrelink or their former CDEP that they have commenced paid employment.
Low income employees, particularly part-time employees, may still be entitled to receive reduced income support payments through Centrelink.
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Time limits on submitting Claims for Payment Employers and employees must complete the information required in the Claim for Payment/Tax Invoice form and submit it to the Department within 28 days of the end of the claim period. Claims for payment can be submitted by email to email@example.com, or fax to 02 6276 9617, or by post to:
Indigenous Wage Subsidy Indigenous Employment Program Branch Department of Education, Employment and Workplace Relations GPO Box 9879 Canberra City ACT 2601 The Department will send out claim reminders to employers when their claims are due. Claims for Payment – Career Development Assistance Employers and employees must complete the information required on the Career Development Claim for Payment/ Tax Invoice form and submit it to the Department. Career Development Assistance is a reimbursement of monies already paid by an employer. An employer must also submit an invoice to be eligible for Career Development Assistance. Claims for payment can be submitted at any time by email to firstname.lastname@example.org, or fax to 02 6276 9617, or by post to:
Indigenous Wage Subsidy Indigenous Employment Program Branch Department of Education, Employment and Workplace Relations GPO Box 9879 Canberra City ACT 2601
Due date for payment of claims
Properly completed IWS and Career Development Assistance Claims for Payment/Tax Invoices lodged by employers should be processed and paid within 28 days of receipt by the Department.
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Circumstances where IWS is not payable
IWS is not payable for any: Period after which the employee is terminated Period after which the job is materially downgraded without the consent of the Department Period for which the employer is in breach of the IWS Agreement Unpaid leave by the employee in excess of 5 days Period for which the employee is entitled to worker’s compensation payments Period for which the employee reverts to full income support or CDEP payments Gift, bonus or termination payments to the employee Holiday pay upon termination Hours worked by the employee which are more than those agreed to in the IWS Agreement (eg overtime).
Extension of the period over which IWS can be paid
If the employee does not attend work for a continuous period of more than 1 week and up to 8 weeks as a result of: Unpaid leave for sickness, injury or family care An industry wide shut down or holiday or Other reasons acceptable to the employer,
The employer can seek to have the IWS Agreement: Suspended for the period of the absence and The IWS period extended.
The employer will need to note the period and the reason on the claim form, or by email to email@example.com. Where the request is reasonable the extension will be granted for the period requested. The amount of IWS subsidy will not be increased.
If the employee is unable to attend work for a continuous period likely to be 8 weeks or longer, the employer should notify the Department and submit a Claim for Payment for the period up to the employee ceasing to attend work.
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Once the employee is able to recommence work, the employer can lodge a new application for IWS. This application may be approved for the remaining balance of the 26 weeks subsidy period.
Workers compensation coverage
Employers must ensure that an IWS employee injured at work is entitled to the same workers compensation benefits as other employees in that business or industry.
Debt Recovery action if payments are incorrect
The terms and conditions of the IWS Agreement give the Department the right to recover any overpayment. In line with the Department’s current Debt Management Guide, overpayments will be pursued by the Recoveries Team but amounts that are uneconomic to recover may be written off
Other important facts about IWS -
IWS payments are business income and therefore taxable. Employers can obtain further information from their tax consultant or the Australian Taxation Office. IWS payments are not required to be acquitted by employers
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