Association group, Australasian Society of Association Executives (AuSAE), is asking the government to extend the 15 percent JobKeeper payment threshold to all not-for-profits (NFP), not just charities.
Currently, charities can apply for JobKeeper payments if they can prove 15 percent of their turnover has been lost. Whereas businesses and other NFPs have to prove a 30 percent loss to be eligible for the payments.
The loss is calculated by comparing turnover from a period this year to the same time in the year before.
Proving this loss is difficult for associations & NFPs, who rely on cyclical income from memberships and annual conferences says AuSAE CEO, Toni Brearley.
“Currently, the way the income or turnover test works is you have to prove that you’ve had a 30 percent turnover loss based on the previous year,” Ms Brearley told Event Organisers.
“What we would like to see is either: all NFPs given the 15 percent threshold reduction—that would be more likely to be achieved—or, an alternative method to convey to the Tax Commissioner around the issue around this annual income cycle.”
Ms Brearley and AuSAE have sent a letter to the government, requesting the 15 percent threshold to be extended to the whole NFP sector.
“Associations are working really hard right now. They’re doing a lot of work for the government. They are distributing policy on behalf of the government, and most of them are at the table helping the government make these policies,” Ms Brearley said.
“If you have a look at any associations website, the resources and support they are providing for individual sectors, there’s a lot of work going on.”
If the JobKeeper threshold isn’t extended to all NFPs, Ms Brearley fears job cuts may impact how well associations can continue in this role.
“My concern is, if they’re not going to get access to that JobKeeper payment, then the only thing they can do is lose staff.”
AuSAE is urging associations and NFPs to share the letter with their Member of Parliament.