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 less than $1 billion (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 $1 billion or more (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.
Not-for-profits and charities can register for the JobKeeper Payment on the ATO’s 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.
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.