As specified in the costing request, any departmental expenses including ICT costs relating to this commitment will be met from within the existing resources of the Department of Employment. Where relevant, explain the reason for any significant differences between the assumptions specified in a party costing request and those used in a Treasury or Finance costing. Not applicable. Other comments (including reasons for significant differences between the estimated impact on the fiscal and underlying cash balances). Not applicable. Background information Costing methodology used: The proposal will cap funding for wage subsidy pool for the wage subsidies other than PaTH at $357.9 million over the forward estimates. Consistent with the costing request, the costing assumes that wage subsidies other than the youth wage subsidies available under the PaTH program would be capped at a reduced level that is $254.4 million less than the existing funding over the Forward Estimates. Changes to the Wage Subsidy Pool will be as follows (in underlying cash impact terms): The savings would be redirected to fully offset the costs of the Coalition’s policies for Restoring Fairness and Transparency to Australian Workplaces (costing COA 028, $54.4 million over four years)and the Regional Jobs package (costing CO A037, $200.0 million over four years).
As specified in the costing request, any departmental expenses including ICT costs relating to this commitment will be met from within the existing resources of the Department of Employment. Where relevant, explain the reason for any significant differences between the assumptions specified in a party costing request and those used in a Treasury or Finance costing. Not applicable. Other comments (including reasons for significant differences between the estimated impact on the fiscal and underlying cash balances). Not applicable. Background information Costing methodology used: The proposal will cap funding for wage subsidy pool for the wage subsidies other than PaTH at $357.9 million over the forward estimates. Consistent with the costing request, the costing assumes that wage subsidies other than the youth wage subsidies available under the PaTH program would be capped at a reduced level that is $254.4 million less than the existing funding over the Forward Estimates. Changes to the Wage Subsidy Pool will be as follows (in underlying cash impact terms): The savings would be redirected to fully offset the costs of the Coalition’s policies for Restoring Fairness and Transparency to Australian Workplaces (costing COA 028, $54.4 million over four years)and the Regional Jobs package (costing CO A037, $200.0 million over four years).
coa_052_-_costing_-_reduction_in_the_wage_subsidy_pool.docx