Opposition Leader Bill Shorten used the ALP campaign launch in Brisbane to announce a new job creation plan aimed at getting over-55s back into the workforce.
The ALP pledged that if elected it would provide tax cuts to any business with an annual turnover of less that $10 million that employs someone younger than 25 or older than 55.
“Too many mature Australians are too young to retire, but unable to find work – around 86,000 Australians aged over 55 are looking for work,” Mr Shorten said.
“We believe that young or old, city or bush, every Australian, regardless of their age, regardless of their postcode, has the right to the dignity of work.”
Companies with turnover of less than $10 million that have been operating for more than two years will be eligible for an additional 30 per cent tax deduction for up to five new workers’ salaries for their first year of employment, capped at $50,000 per company.
To be eligible for the additional deduction, new employees need to have been unemployed for three months or more as well as meeting the age requirements.
Case study
Rob is 56 and worked at a car manufacturing company for 20 years. He was made redundant two years ago, but despite his technical expertise and significant experience, he hasn’t been able to find work since.
Michael runs an automotive spare parts company and is looking for someone to add to his 10-person full-time workforce, to be paid a gross salary of $60,000. When Michael employs Rob, he will be able to deduct $78,000 from his business revenue, reducing his business’s taxable income by an additional $18,000.
Michael also takes on Alison, who has been searching for work for four months after caring for her elderly mother for the last four years, to work part-time. When he pays Alison $26,000 a year – including penalty rates – he will be able to deduct $33,800, reducing his business’s taxable income by an additional $7800.
Taken together, when Michael does his tax, he gets an additional tax deduction of $25,800 for hiring Rob and Alison.
What do you think of Labor’s job creation plan? Will it work? Are you over 55 and unemployed? Will this policy change your vote?
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