Financial Support during COVID-19 (Update 6/04/2020)

*** UPDATE 6/04/2020 ***
The Federal Government has now lowered the threshold of some of the requirements for charities to be eligible for the JobKeeper subsidy. Any church registered with the ACNC will now only need to show a reduction of 15%  to revenue could now be eligible. The legislation to enable this still needs to be passed – schedule for Wed 8/04/2020.
ABC News Report Here

This last week has seen a number of State & Federal Government stimulus initiatives introduced to support small business and their staff during these difficult times.

The first, Boosting cash flow for employers, was mentioned last week in this blog post.

A couple of updates to this based on some webinars I have recently been to:

  • While it is being called a “Cash Flow Boost”, there is no cash payment received by the organisation. A credit will be made through the Activity Statement system based on PAYG withholdings.
  • It is now a two part system.
  • The first credit will be received after lodgement of your standard March 2020 lodgement, but not applied until after 28 April.
  • The second credit will be received from July and be equal to the amount received in the first credit “boost”.
  • The attached presentation PDF by Saward Dawson (accountants) provides some useful example from page 7.

The second, the Federal Government Wages Subsidy (Jobkeeper Payments), will provide a subsidy to eligible employers (which can include churches) to enable them to keep on staff. The likelihood is that this will be available from May 2020, but in this case a church needs to actually apply for this benefit. There is a list of obligations and steps that the church needs to meet before payments will be received.

More information and information sheets can be found on the Treasury website.

BFS has also set up a COVID-19 response webpage which provides information on the above, PLUS other opportunities and resources that BFS are offering to churches. Click here to be taken to the BFS website.

Phil Dewing (a Treasurer at one of our churches and a Chartered Accountant) has also written an information and how to sheet specifically for those in the church space. The idea behind this guide was not only to provide information on the available Government support, but also provide a list of action points that churches should now be taking. Phil has also generously provided his contact details if you have any questions (thanks Phil). Click here to go to this resource.

Thank you Phil for providing this resource to us.

Photo by Campaign Creators on Unsplash