The Government is providing vital support to help not-for-profits withstand the economic impacts of the Coronavirus.
Not-for-profits including charities who have experienced a decline in turnover as a result of the Coronavirus may be eligible to apply for the JobKeeper Payment.
Under this scheme, employers impacted by the Coronavirus will be able to access a subsidy from the Government to continue paying eligible employees.
The fortnightly subsidy of $1,500 per eligible employee will start on 30 March 2020, with the first payments to be received by employers from the ATO from first week of May.
Not-for-profits will be eligible for the JobKeeper Payment if, at the time of applying:
- they have an aggregated turnover of $1 billion or less (for income tax purposes) and they estimate their GST turnover has fallen or will likely fall by 30 per cent or more; or
- they have an aggregated turnover of more than $1 billion (for income tax purposes) and they estimate their GST turnover has fallen or will fall by 50 per cent or more.
Charities registered with the Australian Charities and Not-for-profits Commission (ACNC) will be eligible for the subsidy if they estimate their turnover has or will likely fall by 15 per cent or more relative to a comparable period. From 28 September 2020 JobKeeper will be extended and targeted at organisations that have been significantly impacted by the Coronavirus.
JobKeeper payments 28 September 2020 to 3 January 2021
From 28 September 2020 to 3 January 2021, the payment rate will be $1,200 per fortnight for all eligible employees who, in the four weekly pay periods before the reference period (in most cases), were working in the business for 20 hours or more a week on average, and $750 per fortnight for employees who were working in the business for less than 20 hours a week on average and in the reference period.
JobKeeper payments 4 January 2021 to 28 March 2021
From 4 January 2021 to 28 March 2021, the payment rate will be $1,000 per fortnight for all eligible employees who in the four weekly pay periods before the reference period (in most cases), were working for 20 hours or more a week on average, and $650 per fortnight for employees who were working for less than 20 hours a week on average in the reference period
For more information on what is changing for JobKeeper payments from 28 September 2020 and changes to eligible employees from 3 August 2020, read the JobKeeper Payment extension fact sheet.
Not-for-profits and charities can register for the JobKeeper Payment on the ATO website.
Boosting cash flow
The Government is providing temporary cash flow assistance to support the activities of not-for-profits including charities at a time when they are facing increased demand for services.
This assistance involves two sets of cash flow boosts delivered in April and July-October 2020 to support employers to retain employees.
The Government will provide tax-free cash flow boosts of between $20,000 and $100,000 to eligible not-for-profits, delivered through credits in the activity statement system.
Coronavirus Small and Medium Enterprises (SME) Guarantee Scheme
The Coronavirus Small and Medium Enterprises (SME) Guarantee Scheme will enhance lenders’ willingness and ability to provide credit, supporting many otherwise viable SMEs, including NFPs, to access vital additional funding to get through the impact of Coronavirus.
The Scheme will support up to $40 billion of lending to SMEs, including NFPs. Under the Scheme, the Government will guarantee 50 per cent of new loans issued by participating lenders to SMEs.
To enable continued support for SMEs (including NFPs) in recovery, and for those facing the ongoing impact of the pandemic, the Government will extend the Scheme to be available to loans written until 30 June 2021. As part of this extension, the Government will make targeted amendments to the Scheme’s parameters to increase flexibility and ensure that the loans available will suit the evolving needs of businesses, including NFPs. More information is available on the SME Guarantee Scheme page.
Community support package
The Government has set aside $1 billion to support communities, regions and industries most significantly affected by the Coronavirus. These funds will be available to assist during the outbreak and to help with the recovery.