Hi
I sent this to the ML first, before realizing this was around.
An idea for helping business to hire unemployed people
The system works something like this
Allow business to claim and extra $1 for every $1 they spend on income
for an unemployed person. The extra $1 would have a limit of what ever
that person would have received in unemployment payments ( to make it
easy, say their max payment over the last 12 months). And that the
deduction can be claimed for a min 2 - 3 months for a max of 12 months
So If john smith was unemployed for 3 months and he got a job at xyz
@ $600/w . and his max weekly unemployment payment was say $300/w
Then company XYZ could claim the usual $600 of tax as an expense and
also claim $300 / w extra.
This would last for 3 months as that is the min period and also John
smiths max period on unemployment
Somebody replied on the mailing list - who pointed out this site existed (thanks Peter). Seems like I gave the impression that the person is still unemployed.
(cut paste of reply)
The business would have to hire the person, normal employment, but the
company gets to claim extra deductions from the tax system.
So company XYZ hires john smith, normal employee, normal work, normal pay.
John smith takes home normal pay, the company pays his wages, but
because he was unemployed the government alloys for an extra payment
Business complain the cost of hiring people is to expensive … etc etc etc …
Most business don;t want to expand because of cost, i think this would
allow business to hire people at a reduced cost for upto 2-3 months.
if the works there then they keep them. if not, they go through the
normal process of making somebody redundant. John smith has real life
work experience.
I think the newstart payment that would have been paid to john smith
because xyz didn’t want to hire any one because of cost, can be used
to entice XYZ to hire john smith…
I guess people / business could scam the system, by firing and then rehiring employees every 3 month to make sure they get the 3 months min help out, but I presume you could stop that …