Pauline Hanson's One Nation has been convinced to backflip on safeguards for older workers in a scheme giving cash payments to hire young jobseekers.
The Morrison government on Wednesday evening passed a bill to establish its JobMaker hiring credit scheme after One Nation abandoned support for protections added to the legislation despite voting for them a day earlier.
The program gives employers $200 a week for employing a jobless person under 30 and $100 for hiring those aged 30 to 35.
The safeguards would have disqualified employers found to have sacked a worker in order to get the payment.
But the government opposed changing the bill to add extra protections, arguing existing laws gave workers the chance to contest sackings.
One Nation senator Malcolm Roberts said Treasurer Josh Frydenberg had presented the minor party with unemployment data for people under and over 35.
"When we get new data we have the courage and the integrity to change our position," he said.
Senator Roberts said 10.4 per cent of people under 35 were jobless, while four per cent of Australians over that age were unemployed.
"Two figures changed my mind because I care about young people and older people," he said.
Senator Hanson said the meeting with Mr Frydenberg on Wednesday afternoon shifted her stance, having been misled by the opposition over the extent of workplace protections.
"I'm quite happy with the information I have received from the treasurer who has legal advice ... not this bits and pieces (from Labor)," she said.
"Our votes are always based on what we believe is right."
Senator Hanson had earlier told parliament the JobMaker scheme had "too many flaws" and "has not been properly thought through".
Labor and the Greens accused Senator Hanson of selling out older Australians.
"One Nation pretend to be the party of the battlers and yet they turn around and vote with the government to do over workers rights around this country," Greens senator Nick McKim told parliament.
The Australian Council of Trade Unions said the decision to reject the amendments was “indefensible”.
“This decision by the government will directly lead to a higher rate of insecure work,” ACTU President Michele O’Neil said.
“The Morrison government’s response to this crisis has been to pump billions of tax payer dollars into businesses, often without adequate safeguards and protections for workers.”
The amendments also would have legally required transparent reporting.
The government argues explicit protections are unnecessary as the credit will not be available for bosses who do not increase their headcount and payroll.
Mr Frydenberg will decide other rules around the scheme.
