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Stimulus Incentives for Not-for-profits

As part of a second stimulus package in response to the economic support through the COVID-19 Pandemic, the Federal Government has now included support for Australia's charity and not-for-profit sector. Below is a summary of measures included in the new plan:

Support for Not-for-profits:

  • Not-for-profits (including charities) with aggregated annual turnover of up to $50 million and that employ workers are eligible for a tax-free payment of up to $100,000 to help them keep staff and continue operating. The minimum payment is $20,000. The payments will not require new forms to be completed and will flow automatically through the ATO.

    This measure is expected to benefit around 30,000 eligible not-for-profits with the hope that they are able to retain employees at a time when there is an increase in the demand for their services.
  • Eligible enterprises will get a payment equal to 100% of the amount tax withheld, up to a maximum payment of $100,000, which can be used as a wage subsidy.

  • Under the new scheme, there will be an increase of the rebate of PAYG withholding to $50,000 to eligible NFPs to be paid from 28 April 2020, with the minimum payment increased from $2,000 to $10,000. Payment is by way of a credit in the activity statement account from 28 April. Monthly lodgers will be calculated at three times the rate (300 per cent) in the March 2020 activity statement.

  • How to apply: Automatic, to be applied upon lodgement of activity statements starting with the March 2020 period.


An additional payment is also expected to be made from 28 July 2020. Eligible entities will receive an additional payment equal to the total of all of the Boosting Cash Flow for Employers payments received from the above scheme, however further details surrounding this payment are not yet available

HLB Mann Judd (NSW) will continue to share updates as they come in. Should you wish to learn more about stimulus package benefits, please contact Kim Kelloway Head of Clients and Markets kkelloway@hlbnsw.com.au or 02 9020 4285.

View the explainer video >>

See more information about stimulus incentives >>

SMC - March 2020
TFE - March 2020