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The Federal Government has significantly relaxed the eligibility requirements for charity workers to be eligible for the JobKeeper coronavirus wage subsidy.
- Registered charities will be eligible for the JobKeeper payment if their revenue declines by 15 per cent
- Charities welcomed the news as under the initial arrangements those with a revenue of less than $1 billion needed to have recorded a 30 per cent drop for eligibility
- The Government estimates there are 57,000 charities operating in Australia
Last week the Government announced the $1,500 a fortnight payment to keep Australians in work.
The $130 billion support package included thresholds for charities and not-for-profit organisations to be eligible.
Under the initial arrangements those with a turnover of less than $1 billion needed to have recorded a drop in revenue of at least 30 per cent.
Charities with a turnover above that figure were only able to claim the payment if their revenue had halved.
But late on Sunday night Treasurer Josh Frydenberg revealed a compromise deal with a significantly lower eligibility threshold, after it had earlier been revealed that eligibility could be broadened.
He said charities registered with the national regulator would be able to access the JobKeeper payment if they were hit with a 15 per cent decline in turnover.
"Legislation to be introduced into the Parliament this week will include a concessional test for ACNC (Australian Charities and Not-for-profits Commission) registered charities given the benefit they provide to the Australian community," Mr Frydenberg said in a statement.
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"A reduced threshold at which a charity is considered to be substantially affected by the coronavirus, as compared to businesses and other not-for-profits, will support a sector which is expected to have a significant increase in demand for its services."
The Government had been in negotiations with the Australian Council of Social Service, the Salvation Army and Catholic Social Services Australia — among other groups — in the wake of last week's announcement.
About 1.3 million people work in the charity sector.
Community Council for Australia (CCA) chair Tim Costello said the Government's announcement followed written representations from a number of charities about the need for the original measures to be reconsidered.
"This is very welcome news for charities across Australia. Many are already doing it tough, having to stand down staff, close down services," Reverend Costello said.
"We are very pleased that the Government has recognised the special role charities play across Australia. This acknowledgement through concessional access to the JobKeeper Payment means more charities will be able to keep supporting their communities.
Mr Costello said the Government was investing in the future of vital services.
"We are going to need as many charities as possible surviving through this crisis and helping rebuild Australian communities into the future, and these measures will help deliver that outcome."
The Government estimates there are 57,000 charities operating in Australia.
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Topics: infectious-diseases-other, respiratory-diseases, government-and-politics, covid-19, canberra-2600, australia
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