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.