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  • Not-for-profits and charities

    Not-for-profits (NFPs) may be entitled to JobKeeper payment to help them pay their employees. This information will help you to understand how the rules apply to NFPs. It should be read in conjunction with the other general advice we have issued on JobKeeper for employers.

    Eligible NFPs

    NFP entities, like other employers, must meet eligibility requirements to qualify for JobKeeper.

    Registration with the Australian Charities and Not-for-profits Commission (ACNC) is not required to qualify for JobKeeper.

    To be eligible, an NFP entity must be established on or before 1 March 2020 to qualify for JobKeeper. If they are established after 1 March 2020, they are not eligible.

    An NFP entity may be eligible for JobKeeper if it pursues its objectives principally in Australia. This means the activities that achieve the entities purpose occur mainly in Australia.

    However, an NFP entity that is endorsed under the Overseas Aid Gift Deductibility Scheme or for developed country disaster relief does not need to pursue its objectives principally in Australia to qualify for JobKeeper.

    From 20 July 2020, an NFP entity that is an approved provider of childcare services cannot claim JobKeeper payments for employees whose ordinary duties relate principally to the operation of childcare services.

    See also:

    • TR 2019/6 Income tax: the 'in Australia' requirement for certain deductible gift recipients and income tax exempt entities (see paragraphs 63 to 69 for further discussion of where objectives are pursued)

    Decline in turnover tests

    One of the requirements of the JobKeeper scheme is that an entity satisfy the original and actual decline in turnover tests.

    See also:

    Non-profit sub-entities

    The JobKeeper scheme does not recognise non-profit sub-entities. A non-profit sub-entity cannot choose to participate in the JobKeeper scheme and assess its eligibility for JobKeeper payments based on the sub-entity's turnover.

    The decline in turnover tests must be applied to the NFP entity as a whole by including the turnover of all its branches and non-profit sub-entities.

    JobKeeper turnover test for non-government schools

    Non-government schools, even if they are an ACNC-registered charity, cannot access the lower 15% decline in turnover threshold. They must demonstrate either a 30 or 50% decline depending on their aggregate turnover.

    We have provided guidance on the decline in turnover tests.

    Applying the original decline in turnover test

    Schools calculating the original decline in turnover test should note:

    • They can use any of the methods endorsed in the LCR 2020/1This link will download a file (subject to the considerations listed there).
    • We expect entities (including schools) to calculate their GST turnover in good faith. For example, if a school in 2020 changed the time they issued invoices or deferred payment of school fees (compared to 2019) or gave broad fee waivers not linked to existing school policy, we would contact them to understand the reason for the change.

    Entities (including schools) will need to ensure they keep reasonable records documenting how they applied the method they used.

    See also:

    ACNC-registered charities

    A charity, that is not a university or a school, can apply the 15% decline in turnover threshold to receive JobKeeper payments for the first JobKeeper fortnight beginning 30 March 2020 provided the charity:

    • has an ACNC registration date of effect that is on or before the end of the first JobKeeper fortnight (12 April 2020)
    • receives a notification of its ACNC registration and enrols for the JobKeeper payment before 31 May 2020
    • meets other requirements including paying their eligible employees by a certain date.


    In working out its turnover, a deductible gift recipient (DGR) must include gifts (other than from an associate) whether they are tax deductible to the donor or not. This includes testamentary gifts or gifts from an overseas donor.

    An ACNC-registered charity is considered a DGR even if it is not endorsed as a DGR as a whole but operates a fund, authority or institution that is endorsed as a DGR.

    An ACNC-registered charity that is not a DGR must include gifts (other than from an associate) of money, property with a market value of more than $5,000 or listed Australian shares.

    A gift is a voluntary transfer of property by way of benefaction with no material benefit or advantage received by the donor.

    See also:

    • TR 2005/13 Income tax: deductible gifts – what is a gift

    Government grants

    Government grants that require an ACNC-registered charity to make supplies (whether the supply is taxable or GST-free) are included in the charity's turnover. This is the case unless the charity makes an election not to include the consideration for all supplies from government grants.

    For more information to assist in understanding when a government grant is for a supply, see GSTR 2012/2 Goods and services tax: financial assistance payments.

    A charity, other than a university or a school, can:

    • provide an election to exclude government grants from its turnover within 7 days of enrolling in the JobKeeper scheme (or a later date allowed by the Commissioner)
    • calculate its turnover for all decline in turnover tests to exclude government grants on the basis that the election will be given to us by that date.
    Nomination of fully government funded employees

    If a charity, that is not a university or a school, has elected to exclude government grants from its turnover, it does not need to notify its fully government funded employees it is participating in JobKeeper. However, the charity can choose to receive JobKeeper payments for these employees. If the charity makes this choice, it must notify the employees, and they must agree to be nominated by the charity.

    See also:

    National Disability Insurance Scheme

    An ACNC-registered charity cannot exclude payments received for providing National Disability Insurance Scheme (NDIS) services from its turnover. Payments received for providing NDIS services are considered to be made from the NDIS participant's funds, even if an NDIS participant selects the National Disability Insurance Agency (NDIA) to manage their plan and pay the charity.

    Find out more:

    Last modified: 16 Sep 2020QC 62709