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.
Not-for-profits will be eligible for the JobKeeper Payment if, at the time of applying:
- they have an aggregated turnover of less than $1 billion (for income tax purposes) and their GST turnover has fallen by 30 per cent or more; or
- they have an aggregated turnover of $1 billion or more (for income tax purposes) and their GST turnover has fallen 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 has been 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 is $1,200 per fortnight for all eligible employees who, in the four weeks before 1 March 2020, 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 same 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 weeks before 1 March 2020, 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 same period
For more information on what has changed for JobKeeper payments from 28 September 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 to pay bills and wages
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 the March to September 2020 periods 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 is enhancing lenders’ ability to provide credit, thereby allowing many otherwise viable SMEs, including NFPs, to access cheaper funding to get through the impact of Coronavirus.
The Scheme is supporting up to $40 billion of lending to SMEs, including NFPs. Under the Scheme, the Government is guaranteeing 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 has extended the Scheme to be available to loans written until 30 June 2021. As part of this extension, the Government has made targeted amendments to the Scheme’s parameters to increase flexibility and meet 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.