Version 3.4
Disclaimer
This document is not a stand-alone document and does not contain the entirety of Job Services Australia
Providers' obligations. It should be read in conjunction with the Employment Services Deed 2012-2015 and any relevant guidelines or reference material issued by DEEWR under or in connection with Employment Services
Deed 2012-2015.
Wage Connect Subsidy Guidelines
D06-8974539 Effective Date: July 2013

Version
3.4
3.3
Start Date
1 July 2013
Dec 2012
Effective Date
1 July 2013
Dec 2012
End Date Change & Location
Version 3.4 of document.
Principal Carer Parenting Payment Recipients: clarification to the length of time that Wage
Connect payments can apply to Principal Carer
Parents (pg 5, 7)
Amount of the Subsidy: Adjusted for annual indexation. (pg 7)
Agreement: change of the word ‘should’ to ‘must’ in respect of recording an Employer Signed Date within 28 days of the placement commencement date and that any agreements not finalised within
28 days may be deleted by DEEWR and not be available for reimbursement. (pg 7)
Transferred participants: information relating to the transfer of Wage Connect participants to other providers (pg 8)
Calculating Wage Subsidy payments: clarification of “imposed reduction in work hours” (pg 9)
Workers Compensation: information relating to payments when a Wage Connect participant is in receipt of Workers Compensation. (pg 9)
Annexure A – Managing Wage Connect
Placements: clarification on how to use reports and delete/terminate Agreements. (pg 12)
30 June 2013 Version 3.3 of document.
Flow Chart: Wage Connect Subsidy (pg 4)
Placement Eligibility: Clarification of Wage
Connect and work trials. (pg 6)
Apprenticeship: Clarification of the use of Wage
Connect for apprenticeship placements (pg 6)
Agreement: Requirement to record “employer signed date” (pg 7)
Early exits/unsuccessful placements: Clarification on when to delete and when to terminate Wage
Connect Agreements in DEEWR’S IT Systems (pg 7)
Calculating of wage subsidy payments: clarification of claim periods and unpaid absences.
(pg 8)
Wage Connect Subsidy Guidelines
2
Effective Date: July 2013

3.2
3.1
3.0
2.0
1.0
1 July 2012
May 2012
1 Jan 2012
1 Jan 2012
Draft
1 July 2012
May 2012
1 Jan 2012
28 Nov 2011
Dec 2012 Version 3.2 of document.
Amount of the Subsidy: Adjusted for annual indexation. (pg 5)
Duration of the Subsidy: Clarification and Note.(pg
5)
Payment of Subsidy to Employer: definition of unpaid absences. (pg 6)
30 June 2012 Version 3.1 of document.
Participant Eligibility: Clarification of targeted job seekers and definition of ‘minimal employment’ and formatting (pg 4)
Employer Eligibility: Clarification (pg 5)
Placement Eligibility: Note: A Wage Connect
Placement can only be made by the servicing provider. (pg 5)
May 2012 Version 3 of document. Significant changes made to format of entire document.
31 Dec 2011 Version 2 of document. Significant changes made to entire document.
27 Nov 2011 Original (draft) version of document
1.
All capitalised terms have the same meaning as in Employment Services Deed 2012-2015 (the Deed).
2.
In this document, “must” means that compliance is mandatory and “should” means that compliance represents best practice.
Wage Connect Subsidy Guidelines
D06-8974539 Effective Date: July 2013

Promote the Wage Connect Subsidy and determine that a
Wage Connect Subsidy is required to secure a Job
Placement for a job seeker.
Check that all eligibility requirements for Wage Connect
Subsidy are met.
Check that the Employer is eligible for a Wage Connect Subsidy.
Check that the Placement is eligible for a Wage Connect Subsidy.
Negotiate Wage Connect Subsidy conditions with the
Employer.
Record the Wage Connect Subsidy in DEEWR’s IT Systems.
Complete a Wage Connect Agreement and record “employer signed date” in DEEWR’s IT Systems.
Monitor Wage Connect Placement.
Delete Wage Connect Agreements that do not proceed on DEEWR’s IT
Systems.
Terminate Wage Connect Agreements that end early on DEEWR’s IT
Systems
[Employer] Pay wages and provides evidence of Employment.
Collect evidence of Employment.
Pay the Employer the Wage Connect Subsidy amount.
Submit claim for Reimbursement of Wage Connect Subsidy on DEEWR’s IT Systems.
Note: This should not be read as a stand-alone document, please refer to the Deed.
Wage Connect Subsidy Guidelines
4
Effective Date: July 2013

Objective
The Deed
Participant
Eligibility
Placement
Eligibility

To assist eligible Wage Connect participants to transition to sustainable ongoing paid employment by improving the opportunities for them to gain paid employment and become attached long term to the labour market.

Clause 61A of the Deed details requirements relating to the Wage Connect subsidy.

Wage Connect definitions are defined in Annexure E of the Deed.
Wage Connect is available for registered job seekers who are in receipt of an eligible income support payment; have been in receipt of an income support payment for at least the last two years; and have had no or minimal employment in that time.
This means that within the last two years the job seeker has not:
 had any placements resulting in a Placement Fee being claimed, or
 where they have found their own employment (where a Placement
Fee cannot be claimed) o had any placements that have resulted in the payment of a 13 week or 26 week Outcome, or o declared to Centrelink a certain level of income/hours.

Participants: o Participants must be:
 identified in Employment Services System as eligible for Wage
Connect; o Participants must not:
 have any outstanding worker’s compensation claims against the
Employer; or
 have a pre-existing or current:
 business relationship with the Employer; or
 paid employment relationship with the Employer. o Participants will remain eligible until:
 the full wage subsidy amount is used in a Wage Connect
Placement; or
 the Wage Connect participant remains in the same subsidised position for 26 weeks for full capacity job seekers, or up to 52 weeks where a job seeker has a partial capacity to work or is a
Principal Carer Parent (regardless of whether the full subsidy amount has been paid or they achieve a Full Outcome); or
 they exit from employment services and do not return within 39 weeks or more.
Note: Providers who believe a job seeker’s eligibility has been incorrectly determined can email the Wage Connect Subsidy mailbox (email: wageconnectsubsidy@deewr.gov.au).
Wage Connect Placement is defined in Annexure E of the Deed.
Placements must:
 adhere to sub clauses 61A.4 and 61A.12 of the Deed and
Wage Connect Subsidy Guidelines
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Effective Date: July 2013

 be sustainable and ongoing and expected to continue after the
Wage Connect Subsidy ceases o Placements must not be:
 classified as self-employment or
 part of the Provider’s Own Organisation
Notes:
1.
Providers must make sure that a Wage Connect Placement is suitable employment for the job seeker taking account of the job seekers individual circumstances and any specific barriers to employment that the job seeker faces.
2.
Providers should support the Wage Connect Participant and the Wage
Connect Employer to maximise the success of the Wage Connect
Placement.
3.
A Wage Connect Subsidy may be used for a placement where a work trial has occurred however the period of the work trial must not be more than
10 consecutive working days. Negotiations for the Wage Connect
Agreement must occur before the work trial commences. In accordance with the Job Seeker Placement Guidelines, where the work trial is: a.
Subsidised by the Provider the Wage Connect Placement start date is the first day the Wage Connect Participant is confirmed in ongoing employment. It is not the first day of the paid work trial. b.
Paid by the Employer the Wage Connect Placement start date should be backdated to the first day of the work trial period.
4.
A Wage Connect subsidy may be used for a placement in a Labour Hire company however any subsequent job placement must not contravene any of the Wage Connect eligibility criteria.
5.
A Wage Connect Placement can only be made by the servicing provider.
Employer Eligibility 
Employer o Employer must not:
 have recently retrenched or reduced the number of workers;
 have previously received a Wage Connect Subsidy for the specific individual or the job vacancy without prior written approval from
DEEWR;
 be receiving other government funding (except an Employment
Pathway Fund wage subsidy) for the position;
 be a Provider funded under the Deed;
 already employ the job seeker in any position.
Apprenticeships 
Wage Connect must not be used to support apprenticeship or traineeship placements which will attract payments made through the Australian
Apprenticeship Incentive Program as these are considered to be another government funding source.
Note: Where an employer chooses not to access the Australian Apprenticeship
Incentive Program for a position Wage Connect may be offered. It is important to note however, that even when the Wage Connect payment ceases the
Employer may still not claim payment through the Australian Apprenticeship
Wage Connect Subsidy Guidelines
6
Effective Date: July 2013

Amount of the
Subsidy
Duration of subsidy
Agreement
Incentive Program for the participant in this position. Providers should document this as an additional term and condition of the Wage Connect
Agreement to ensure Employers understand the relationship between Wage
Connect and the Australian Apprenticeship Incentive Program.

As at 1 July 2013 the maximum value of the Wage Connect Subsidy is
$6,047.60 pre-GST and the maximum weekly rate is $232.60. The subsidy will be indexed on 1 July each year.

Wage Connect will be paid for 26 weeks and no more than 52 weeks in accordance with sub clause 61A.2 of the Deed.
Note: The Wage Connect Subsidy is expected to last for 26 weeks. Where a job seeker has a Partial Capacity to Work or is a Principal Carer Parent, the subsidy may extend beyond 26 weeks only where actual wages earned are less than the maximum weekly subsidy amount.

Wage Connect Agreements must: o adhere to sub clauses 61A.6 to 61A.10 inclusive. o have an ‘employer signed date’ recorded on the Wage Subsidy tab in DEEWR’s IT System. (This must be recorded within 28 days of the Placement commencement date).
Agreements can either be generated manually or through DEEWR’s IT Systems.
Note:
1.
Providers must not use their own agreement form for Wage Connect.
2.
Only Wage Connect Agreements with an ‘Employer Signed date’ recorded in DEEWR’s IT system are eligible for reimbursement of Wage
Connect Subsidy payments.
3.
Any Wage Subsidy Agreements not finalised within 28 days of the placement commencing may be deleted by DEEWR, and may not be available for reimbursement.
Early exits/unsuccessful placements

The Provider must: o Delete the Wage Connect Agreement if the Placement did not proceed, or the Placement went ahead without the assistance of
Wage Connect. o Terminate the Wage Connect Agreement if the Wage Connect
Placement ended early (the Wage Connect Participants has worked at least one day).
Note: The Employer is entitled to the Wage Connect Subsidy for any day/s worked, regardless if the Wage Connect Agreement ends early. For an
Employer to claim for days worked they must sign the Wage Connect
Agreement.
Further information on how to delete and terminate Agreements can be found at Annexure A – Managing Wage Connect Placements
Wage Connect Subsidy Guidelines
7
Effective Date: July 2013

Transferred participants
Payments
Payment of subsidy to
Employer
Goods and
Services Tax (GST)
Claims
Calculating wage subsidy payments

If a Wage Connect participant transfers to another provider then both the gaining and losing providers must service the job seeker in accordance with sub clauses 61A.20 and 61A.21.

Providers should liaise with each other in order to ensure that both the job seeker and employer continue to be serviced in accordance with the Wage
Connect Agreement.

Wage Connect payments may be paid in accordance with sub clauses
61A.1, 61A.3, 61A.5, and 61A.11 to 61A.18 inclusive.

Employers must: o provide sufficient evidence to enable providers to claim reimbursements as per the documentary evidence guidelines.

The Provider should: o negotiate a payment schedule, frequency and method suiting the
Employers business arrangements.
Notes:
1.
A Wage Connect calculator has been developed for employers. This is available on the DEEWR website or may be emailed to the employer by the
Provider from the Provider Portal.
2.
To enable Wage Connect Reimbursements for payments to be processed in
DEEWR’s IT systems the Employer’s Australian Business Number (ABN) must be recorded against the Wage Connect Placement.

The Employer and the Provider will need to consider any GST implications of the Wage Connect Subsidy and obtain their own taxation advice.

Providers can submit a claim for Reimbursement as per clauses 61A.16 to
61A.18 inclusive.

The Provider can claim either the: o maximum subsidy value for the claim period; or o actual wages paid to the employee whichever is the least.

Providers may lodge claims for Reimbursement of the Wage Connect
Subsidy payment at any time after they have made payment to the
Employer.

Providers have up to 56 days after the end of the Wage Connect Subsidy
Agreement period to claim the final subsidy Reimbursement.
Providers must retain Documentary Evidence to support claims for
Reimbursement in accordance with the Documentary Evidence guidelines.

Wage Connect is paid for all days in a claim period, excluding unpaid absences, up to 100 per cent of the wages paid in that period. This period covers all days in a pay cycle, not only actual days worked.

Unpaid absence refers to any day that a Wage Connect Participant did not work where they were expected to, and where they did not receive any wages for their absence, such as unpaid sick leave, leave without pay, or shut-down of business without pay. It does not include rostered days off or a permanent imposed reduction in work hours.
Wage Connect Subsidy Guidelines
8
Effective Date: July 2013

Workers
Compensation
Employment
Pathway Fund
(EPF)
Reports
Notes:
1.
Where a Wage Connect Participant works some of their expected days in a given week but does not work all of them only the total number of days not worked should be recorded as unpaid absences. For example:
If a Wage Connect Participant is supposed to work four days in a week but only works two, then the number of unpaid absences is two.
2.
Where a Wage Connect Participant does not work any of their expected days in a given week the number of unpaid absences recorded when calculating the wage subsidy payment must be the full seven day week and not just the number of days they were expected to work. For example: If a Wage Connect Participant is supposed to work four days in a week but does not work any of them the number of unpaid absences is seven.
3.
Where an employer imposes a permanent reduction in a Wage Connect
Participant’s hours this is not considered to be an unpaid absence. For example, if a Wage Connect Participant’s Agreement is for 20 hours per week and after a period of 10 weeks this is permanently reduced to 15 hours per week by the employer, this is not an unpaid absence.

Wage Connect cannot be paid for a period where the job seeker is on
Workcover or in receipt of other Workers Compensation payments and being paid by the insurer rather than the employer.

The period the job seeker is on Workcover should be treated as an unpaid absence and the maximum Wage Connect subsidy amount should be reduced by the number of days not worked.

If an EPF wage subsidy is used to augment a Wage Connect Subsidy the subsidy must: o adhere to both the Wage Connect and EPF Guidelines and any other documentation provided by DEEWR including the Documentary
Evidence for Claims for Payment Guidelines. o reimbursement of the EPF wage subsidy component must be claimed through the EPF claims process.

Any EPF reimbursement for post placement support must adhere to the
EPF Guidelines and any other supporting information provided by DEEWR.
Time spent for routine monitoring a Wage Connect Participant’s participation in employment by the Provider cannot be reimbursed through EPF.

Refer to the EPF Guidelines for further information.

Providers can monitor and track their Wage Connect placements using the: o Job Seeker Caseload report (JSC01) o Anchored Placement Tracking report (PLC01)

Reports can be accessed through Employment Services Reporting through
ECSN.
Further information on how to utilise these reports can be found at
Annexure A – Managing Wage Connect Placements.
Wage Connect Subsidy Guidelines
9
Effective Date: July 2013

More information If you require further clarification you can request a ruling from DEEWR.
Requests for a ruling can only be made by the CEO of your organisation.
How to apply?
1.
Download a ruling application form which is available on the Provider
Portal.
2.
Attach all of the required information.
3.
Send it to wageconnectsubsidy@deewr.gov.au .
What to include in your ruling application?

Your business details including the full name or your organisation, your
 location and site code.

Contact details of person coordinating this request.

The Deed clause/s clarification is sought for.
The question/s you want answered.

All the facts pertaining to the circumstance.

Your considerations.

The outcomes you aim to achieve.
Notes:
1.
DEEWR may decline to give you a ruling if sufficient information is contained in the Deed.
2.
DEEWR will provide a formal ruling within 21 days.
Other reference documents relevant to these
Guidelines

Documentary Evidence for Claims for Payment Guidelines

Job Seeker Placement Guidelines

Outcome Guidelines

Employment Pathway Fund Guidelines
Wage Connect Subsidy Guidelines
10
Effective Date: July 2013

Providers are able to use the Job Seeker Caseload (JSC01) and the Anchored Placement Tracking
(PLC01) reports to monitor and track their Wage Connect placements.
These can be accessed through Employment Services Reporting through ECSN.
Report
Job Seeker Caseload
(JSC01)
Information Available

Wage Connect Eligibility
Flag (Y/N)

Wage Connect Eligibility
Additional usage
Anchored Placement
Tracking (PLC01)
JSA General Claims
(CLMS0004A)
Start Date

Employer signed Date

Wage Connect Subsidy
Expected End Date

Wage Connect Subsidy
Termination date

Subsidy Duration

Breakdown of all Wage
Connect expenditure by organisation, site, placement and job seeker.
To identify Wage Connect Agreements that are not signed:

Export the information in the report

Filter by the ‘WCS Expected End Date’ column.

If a placement has a ‘WCS Expected End Date’, but no ‘WCS Employer Signed Date’ this means it is a Wage Connect placement without an employer signature.

Set ‘Claim Rate Type’ to: WSVS -
JSA Wage Connect Subsidy Payment

Payment status of all claims including
Approved and Pending
Action
Deleting Agreements
Reason

Wage Connect placements that did proceed

Placement went ahead without the assistance of
Wage Connect
Terminating Agreements

Wage Connect placement commenced but ended early
How
 un-tick the Wage Connect Subsidy check box on the Referral tab on the Vacancy Placement screen.
OR
 use the delete button on the Wage Subsidy tab on the Vacancy Placement screen
 record a ‘termination date’ and an ‘end reason’ on the Wage Subsidy Agreement tab on the Vacancy Placement screen.
Wage Connect Subsidy Guidelines
D06-8974539 Effective Date: July 2013