Businesses will be rewarded for hiring young people under a $4 billion scheme the Morrison government says will support 450,000 jobs.
As part of the budget, Treasurer Josh Frydenberg has on Tuesday evening launched the JobMaker "hiring credit".
It will be $200 a week for employees aged 16 to 29, and $100 a week for people between the age of 30 and 35.
Employers can receive the payments for each new job they create over the 12 months from October 7.
The hiring credit will be paid for up to 12 months from when each eligible employee starts.
To be eligible, the new workers must have been receiving either JobSeeker, Youth Allowance or Parenting Payment for at least one of the three months before they are hired.
The new hires will have to work for at least 20 hours a week.
All businesses - except for the major banks - will be eligible for the scheme.
"Having a job means more than earning an income," Mr Frydenberg said in his budget speech.
"It means economic security, it means independence, it means opportunity. We can't let this COVID recession take that away."
The hiring credit will effectively take over from the JobKeeper wage subsidy, which will end in March next year.
JobKeeper was recently split into a two-tiered system resulting in full-time staff receiving $1200 a fortnight while part-time employees get $750.
Although being on JobKeeper prior to being employed is not an eligibility criteria for the hiring credit, more people are expected to turn to JobSeeker due to the reduced rates.
