Social support service leaders say the federal budget's focus on creating jobs for young workers has let down job seekers aged over 35 and will create a new group of people experiencing financial hardship.
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The new JobMaker Hiring Credit revealed in this week's budget will give $200 a week to employers who hire anyone aged 16 to 30, and $100 a week for any worker aged 30 to 35, for up to a year.
Ballarat resident Tamara Sheward has been on JobKeeper since her freelance work with travel publishing company Lonely Planet dried up in March.
The 48-year-old said she had become numb to the feeling of distress that was at its peak when the pandemic first hit, but her worry was rising again with the release of the federal budget and changes to JobKeeper.
I am definitely afraid that if there is a financial incentive for employers to hire younger people, then that could definitely be at my detriment.
- Tamara Sheward
Ms Sheward said she had applied to enrol in further study to become a teacher's aid and she was prepared to make a complete career change to have a better chance securing work.
She said the announcement of the JobMaker Hiring Credit made her fear it would become even harder to be employed.
"I am in my late 40s. We all know how hard it is for anybody middle aged to get work, especially a middle-aged woman," she said.
"I am definitely afraid that if there is a financial incentive for employers to hire younger people, then that could definitely be at my detriment."
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Salvation Army Ballarat team leader John Clonan said job seekers aged over 35 would be a new vulnerable group that could become more dependent on welfare.
He said this would have a particularly harsh impact on people who lost their job due to coronavirus who were close to retirement.
"We may find there will be an older vulnerable group in that catchment who will be wanting to receive emergency relief assistance, particularly when it comes to utilities," Mr Clonan said.
"The other thing is often a lot of those people are very reticent to come forward to receive assistance.
"What we would like to encourage is if there are people who find themselves in those situations, Salvation Army is certainly there for them."
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Brotherhood of St Laurence research released in June revealed the impact of COVID-19 on low income earners aged 50 to 60 had been severed.
Researchers estimated up to 30 per cent of the newly un- or underemployed were aged 51 to 65.
"Not yet eligible for the pension or aged care, many of these people are caught between employment and retirement," the research paper said.
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For employers to be eligible for the new JobMaker Hiring Credit, new employees under 35 must have been on JobSeeker and be given at least 20 hours of work a week.
Ballarat Trades and Labor Council secretary Brett Edgington said he was concerned big businesses like fast food and retail chains would exploit the scheme.
"I have seen in the past how schemes can be manipulated and used by business and this one is a doozy," he said.
"The big burger and retail chains will put people on for 12 months on 20 hours, get the subsidy and will terminate them when the subsidy runs out.
"The second biggest problem is anyone working in retail, hospitality, tourism and some of those precarious industries over 35 years of age will no doubt lose their job because they will be replaced by subsidy workers."
Senator Michaelia Cash said an existing program called Restart already provided businesses with up to $10,000 if they hired older workers.
"This helps eligible job seekers who are aged 50 or over and have been on income support for six months," she said.
"And it's actually helped over 50,000 mature-age Australians get a job in recent years."