Stimulus package for charities and not-for-profits

Date: March 27, 2020
Author: FAL Lawyers
Posted in: Insights

Part of the Federal Government’s response to COVID-19 has been the announcement of $189 billion stimulus package. Included within this package are payments and initiatives which will be available to certain charities and not-for-profit organisations.

It is encouraging to see support for the sector at a time when many organisations are not only facing an increasing demand for their services, but also needing to operate as a business in an increasingly harsh economic climate.

The most immediate of these initiatives is tax-free payments of between $20,000 and $100,000 for eligible SMEs and not-for-profits (including charities) with an aggregated turnover less than $50m and which employ workers.

Payments will be available from 28 April 2020 and will, in simple terms, be paid by refunding 100% of the salary and wages withheld by that organisation.  By tying payments to the PAY-G withholding regime, the initiative aims to incentivise organisations to hold onto their workers.

It is estimated that the initiative will benefit around 30,000 not-for-profit organisations (including charities).

There are other measures expected to be adopted at the State and Territory level (e.g. refund/deferral of payroll tax for eligible entities).

Contact us to find out how we can assist your charity or not-for-profit.

https://ministers.treasury.gov.au/ministers/josh-frydenberg-2018/media-releases/supporting-australian-workers-and-business

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