This modeling paper was commissioned by a non-government member of parliament before the 2010 Federal election to ascertain the cost to tax payers of a subsidy for employing workers over 50 years of age.

The following briefing was commissioned on behalf of a non-Government member of Parliament by the Pre-Election Policy Unit of the Parliamentary Library. The Unit was established to assist non-Government Senators and Members develop polices in the lead-up to federal elections. The views expressed do not reflect an official position of the Parliamentary Library, nor do they constitute professional legal opinion.

The scenario modelled in this paper is a wage subsidy of $250 per fortnight to employers who give a full time job (pro-ratad for a part time job > 20 hours) to people who are:

• not currently working;
• aged over 50 years;
• and receiving any form of income support including the age pension.

This paper was prepared by NATSEM, a research centre at the University of Canberra that undertakes research and analysis specialising in the use of microdata and microsimulation modelling to address ongoing and emerging research agendas and client demand and contribute to and enhance social, economic and business decision making.