The federal government will offer the cash to up to 10,000 businesses if they employ someone 50 or older and keep them for more than three months. Treasurer Wayne Swan said last night the policy aimed to give older Australians extra financial security in their later years.

“Older Australians have built up a lifetime of skills and experience and, if these Australians want to stay in the workforce, we should do everything we can to help that happen,” Mr Swan said.

“Many senior Australians will prefer a quiet and well-earned retirement but many prefer to stay connected to the workforce and this initiative will help them do just that.”

The Jobs Bonus, available from July 1 and costing $10 million over four years, will form part of the government’s response today to a recent report on the economic potential of older jobseekers.

The Economic Potential Of Senior Australians last year found more older workers needed to get into the workforce but that age discrimination was often a barrier because some bosses don’t want to hire mature-aged staff.

The policy expands the government Corporate Champions program, with members of the scheme to receive priority for the $1000 payments.

Employment Minister Bill Shorten said the $1000 incentive recognised the changing demographics of our workforce, with Australians working longer and to an older age.

Mature-age participation rate exceeds world averages – except among the over-65s – but unemployed mature-age people, particularly those with limited skills, can find it difficult to re-enter the job market.

“Longer life expectancy, better health and reward for cerebral work over brawn is favouring longer years in the workforce,” Mr Shorten said.

“This will make it that much easier for companies to support jobseekers who have a lifetime of experience with which to make a valuable contribution to workplaces.”

Economic Potential Of Senior Australians review panel chair Everald Compton said the nation could only prosper if it recognised the best attributes of older people.

“We are wasting good experienced talent,” he said.

The state government believes it could have reaped between $6 billion and $8 billion, earmarked to fund critical infrastructure, by selling Macgen and Delta Coast.

But the carbon tax will force a writedown and whittle that windfall down to between $3 billion and $5 billion.

“This isn’t just a hit to the generator value, it’s a direct hit to the people of NSW,” Resources and Energy Minister Chris Hartcher said.

“Why is Julia Gillard punishing NSW? Victoria is getting $2 billion (compensation for the generators) yet we don’t get a cent. Any fair person would say the arrangements must be reconsidered.

“Whichever way you look at it, $3 billion is being ripped away from the people of this state as a result of Labor’s carbon tax … that’s $3 billion that we won’t have for critical roads, hospitals and schools.”

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A spokesperson from federal Climate Change Minister Greg Combet’s office last night hit back at the claims, saying the NSW economy would surge under a carbon price, with 400,000 new jobs created by 2020.

“The O’Farrell government has a track record of using dodgy figures to run a political scare campaign on carbon pricing,” the spokesperson said.

Meanwhile, a renewable energy action plan which has been in the wind for months was again deferred by cabinet on Monday because National Party ministers were concerned about the emphasis on building wind-power stations.

The delay came as the government considered whether to push ahead with complying with the Gillard government’s 20 per cent renewable energy target by 2020, with electricity bills already high.

Mr Hartcher has made a submission to the federal government’s energy white paper suggesting it dump the 20 per cent target, because the carbon tax is coming in. One government source said: “Is going after renewables worth it?”

Climate Institute chief executive John Connor said Mr O’Farrell would be breaking an election promise if he failed to keep the renewable energy target.

Mr O’Farrell has vowed to keep his promises – the main reason he is not supporting a second Sydney airport or selling up to $15 billion worth of electricity poles and wires.