Over the past few weeks, Commonwealth, State and Territory Governments have been announcing measures designed to relieve the burden and maintain cash flow for organisations as they respond to challenges presented by the COVID-19 pandemic.
There has been a steady stream of announcements, so it can be difficult to keep up. A guide from Social Ventures Australia with support from Paul Ramsay Foundation outlines the most material announcements for not-for-profits and charities, with a focus on Commonwealth Government measures that apply broadly across the not-for-profit sector.
It includes eligibility criteria relevant for many of SVA and Paul Ramsay Foundation’s partners. It also provides links to additional resources that highlight available supports at the State and Territory level.
Some organisations may also be able to benefit from additional support specific to their sector. For example, governments have already announced measures to support organisations working in mental health, domestic violence, support for Aboriginal and Torres Strait Islander communities, and emergency relief. This guide found on the organisation’s website does not include all those supports, but does provide links to additional resources. This article only shows the overview.
The guide reflects policy announcements as at 22 April 2020 and will be updated as frequently as required to capture the most material announcements.
List of available Commonwealth Government supports include:
Eligibility criteria for Cash flow assistance for employers are turnover (defined as GST turnover, plus donations) has or will likely fall by 15% or more relative to a comparable period, excludes universities, aggregate turnover has fallen by 30% or more, aggregate turnover has fallen by 50% or more, must meet non-charity eligibility criteria outlined, have an active ABN, have aggregate annual turnover of less than $50 million and made eligible payments they’re required to withhold (even if the amount withheld is zero), meet the criteria for not-for-profits but do not need an ABN, employing fewer than 20 FTEs who retain an apprentice or trainee that was in training as of 1 March 2020, and that re-engage an eligible out of trade apprentice or trainee.
JobKeeper
The JobKeeper payment provides wage subsidies to employers significantly affected by COVID-19. Employers will be provided $1,500 (before tax) per fortnight, to pay their eligible employee’s salary or wages. The subsidy will apply from 30 March 2020, with the first payments to be received by employers in the first week of May.
Eligible entity include charities registered with ACNC, organisations with annual turnover less than $1 billion, organisations with annual turnover of $1 billion or more, and universities and schools.
Boosting cash flow for employers
Tax-free cash flow boosts of between $20,000 and $100,000 delivered through credits in the activity statement system when SME and NFP employers lodge their activity statements. This will be done through two sets of cash flow boosts delivered from 28 April 2020.
Supporting apprentices and trainees
A wage subsidy of 50% of an apprentice or trainee’s wages for up to 9 months from 1 January 2020 to 30 September 2020 for small businesses that employ an apprentice or trainee.
Eligible entity include Not for profits , Charities registered with ACNC, and small businesses (including social enterprises).
Australian Taxation Office
ATO are also making case-by-case adjustments re deadlines and payments. If you are experiencing difficulties meeting your tax and super obligations, the ATO can defer some payments by up to six months. These may include income tax, activity statement, pay as you go (PAYG) instalments, FBT and excise payments.
Mandatory code for the provision of leasing relief by commercial landlords
The National Cabinet has released a mandatory code with principles relating to commercial and residential tenancies, to ensure flexibility in leasing arrangements for those affected by COVID-19. These will be in place for 6 months. The principles include a moratorium on evictions of tenants and the provision of rent relief by commercial landlords, with a
binding mediation process
Each state must legislate these changes. Monitor announcements to see what additional benefits relating to tenancies apply in your state.
For Business investment incentives.
Instant asset write-off and asset depreciation
Until 30 June 2020, the instant asset write-off threshold will be increased from $30,000 to $150,000. Until 30 June 2021, accelerated depreciation deductions will be allowed (up to 50% of the cost of an eligible asset on installation).
Eligible entities are charities and not-forprofits that do not have income tax exemptions, and businesses.
Access to credit and working capital
Organisations with a turnover of up to $50 million are eligible to receive the loans. Nonprofit organisations are eligible. Loans are subject to lenders’ credit assessment processes.
All Aboriginal and Torres Strait Islander businesses are eligible to apply for this, however, businesses who are not eligible for any other government stimulus packages will be prioritised for working capital stimulus assistance.
For Access to credit and working capital
Coronavirus SME Guarantee
Scheme The Government will provide a loan guarantee of 50% to eligible lenders, to enable loans to SMEs. Loans will be for a maximum of $250,000 per borrower, will be unsecured, for up to 3 years, and interest free for 6 months. Small and medium sized enterprises.
Working capital assistance
The Government, through Indigenous Business Australia (IBA), is providing $50 million to specifically support Aboriginal and Torres Strait Islander businesses over the coming months.
IBA will provide support through: (1) Access to advice including a rapid assessment of business positioning, cashflow management and assistance to other government supports; and (2) working capital assistance of up to $100,000 via a loan/grant package, including a grant of up to 50% of the package amount; and for the loan component, concessional repayments and interest rates terms including zero repayments for the first 12 months.
Aboriginal and Torres Strait Islander businesses are eligible.
Australian Charities and Not-for-profits Commission
The ACNC has relaxed compliance measures for charities and not-forprofits in response to COVID-19. This includes an extension for submission of Annual Information Statements (AIS) until 31 August 2020, and changes to requirements for annual general meetings.Some governance requirements have been relaxed, including allowing charities to apply a broader interpretation of their organisation’s purpose, so as to assist the community respond to COVID-19.
Charities registered with the ACNC are eligible.
Meanwhile there are Relaxation of regulations and reporting requirements
Australian Charities and Not-for-profits Commission
The ACNC has relaxed compliance measures for charities and not-forprofits in response to COVID-19. This includes an extension for submission of Annual Information Statements (AIS) until 31 August 2020, and changes to requirements for annual general meetings.Some governance requirements have been relaxed, including allowing charities to apply a broader interpretation of their organisation’s purpose, so as to assist the community respond to COVID-19. Charities registered with the ACNC eligible.
Australian Securities and Investments Commission
ASIC has also relaxed compliance measures for corporations, with regards to annual general meetings and financial reporting requirements. If your organisation is a company registered under the Corporations Act, these may apply to you.
Companies registered with ASIC are elilgible.
Flexibility in workplace laws during coronavirus
Changes have been made to the Fair Work Act and to awards to provide flexibility to employers responding to COVID-19.
Changes to the Fair Work Act enable employers to manage staff costs for employees that cannot be usefully employed for their usual hours and duties and operate in conjunction with the JobKeeper wage subsidy. The changes apply for 6 months and include: (1) reducing staff days and hours of work; (2) performing any other duties within the employee’s skill and competence; and (3) performing duties at a different work location, including the employee’s home. Conditions apply.
Changes to awards apply until 30 June 2020 and allow affected employees to take 2 weeks of unpaid pandemic leave, or twice as much annual leave at half their normal pay if their employer agrees.
Changes to the Fair Work Act apply only to employers who qualify for JobKeeper and who become entitled to JobKeeper payments, and to their eligible employees. Changes to awards only affect employers of people covered by those awards (99 awards are affected).
Ad-hoc
Some government departments are rolling over service contracts that were due to cease at the end of the financial year, and are making amendments to contract requirements. There have not been blanket announcements of these decisions, rather they are occurring on an ad-hoc basis. Those organisations with government contracts for service delivery.
This guide highlights measures that are available to not-for-profit organisations and charities generally. There may be other supports that are specific to the sector. Social Ventures Australia suggest you contact your peak body for further advice and information.