JobKeeper Payments Expanded to include Religious Practitioners

Generally, religious practitioners may not be classified as "employees" for tax purposes, and may receive financial support via non monetary benefits and/or a stipend, rather than salary and wages.

The eligibility rules for the JobKeeper Payment scheme have now been expanded to include religious institutions in respect of religious practitioners (with the exception of those that are students only) who are impacted by the COVID-19 pandemic.

What is a "Registered Religious Institution"?

A "registered religious institution" means an institution that is a registered charity and registered as a charity that is advancing religion under the Australian Charities and Not-for-profits Commission Act 2012.

Who is a "Religious Practitioner"?

A "religious practitioner" for the purposes of the JobKeeper Payment scheme is a minister of religion or a full-time member of a religious order.

The expanded eligibility requirements provide that individuals are eligible religious practitioners in a fortnight if they meet all of the following in that fortnight :

They are not employed by the religious institution;
They are a religious practitioner and they do activities or a series of activities in pursuit of their vocation as a religious practitioner, and as a member of the registered religious institution;
They meet the 1 March 2020 requirements; and
They meet the nomination requirements (explained below).

The eligibility requirements for religious practitioners are largely consistent with those for other employees (ie. the 1 March 2020 requirements), and we have explained these requirements in a previous Tax Alert – click here .

Payment Condition for Religious Institutions

A payment condition applies to an eligible religious institution concerning payments or benefits provided to a religious practitioner to qualify for the JobKeeper Payment scheme in respect of the religious practitioner.

The expanded rules provide that an eligible religious institution meets the payment condition in respect of an individual for a fortnight if it:

Makes one or more payments to the individual from which an amount must be withheld (ie. PAYG withholding); or
Provides a benefit to the individual whether that is a fringe benefit or an exempt benefit under the Fringe Benefits Tax Assessment Act 1986.

We understand that where a religious practitioner is normally paid a salary (and/or has expenses paid on their behalf by the religious institution, ie. fringe benefits) and they have assessed they are entitled to receive the JobKeeper Payment, they will meet the payment condition where they continue to receive a salary (and/or fringe benefits) to the value of $1,500 (gross) per fortnight.

We also note that where an institution usually pays religious practitioners for a regular period of more than a fortnight (such as monthly), then those payments are to be allocated to a fortnight or fortnights in a reasonable manner.

Special Nomination Notice

If you have enrolled or intend to enrol for the JobKeeper Payment, you need to complete the JobKeeper religious practitioner nomination notice ( click here ) to:

Notify your eligible religious practitioners that you intend to participate in the scheme; and
Confirm they agree to be nominated and receive payments from you as part of the scheme.

Both the registered religious institution and the nominated religious practitioner need to complete the form. The completed form does not need to be sent to the ATO, however it should be kept as part of your tax records.

Please do not hesitate to contact your Lowe Lippmann Relationship Partner if you wish to discuss any of these matters further.

< Older Post

Newer Post >

Practice Update – July 2025

July 4, 2025

Changes to car thresholds from 1 July The car limit for the 2026 income year is $69,674. This is the highest value that a taxpayer can use to calculate depreciation on a car where they use the car for work or business purposes and they first use or lease the car in the 2026 income year. If a taxpayer is buying a car and the price is more than the car limit, the highest input tax ( GST ) credit they can claim (except in certain circumstances) is one-eleventh of the car limit. For the 2026 income year, the highest input tax credit they can claim is $6,334 (i.e. one-eleventh of $69,674). The luxury car tax ( LCT ) threshold for the 2026 income year is $91,387 for fuel-efficient vehicles, and $80,567 for all other luxury vehicles. Input tax credits need to be claimed within the four-year time limit. A taxpayer cannot claim an input tax credit for luxury car tax when they buy a luxury car, even if they use it for business purposes.

Audit Lowe Down – Large proprietary limited – are you one? Tips and traps for your assessment

July 1, 2025

Large proprietary limited – are you one? Tips and traps for your assessment. In Australia, being classified as a large proprietary limited company means that you have to prepare, and lodge audited financial statements with ASIC under the Corporations Act 2001 (the Act), however many companies are not necessarily applying the thresholds appropriately. A proprietary company is large if it meets at least 2 of the following thresholds: Consolidated revenue ≥ $50 million Consolidated gross assets ≥ $25 million 100 or more employees. These thresholds seem simple, however some points to note: The calculations must be performed applying ALL accounting standards so even if you are preparing special purpose financial statements, then you will need to assess these thresholds as if you were applying all standards, including: AASB 16 Leases – this standard would add a right of use asset to your balance sheet potentially significantly increasing your gross assets. AASB 10 Consolidated Financial Statements – if you have controlled entities then the inclusion of their income statement and balance sheet may significantly increase each of the thresholds. AASB 128 Investments in Associates and Joint Ventures / AASB 11 Joint Arrangements – if you have entities over which you have significant influence or joint control then applying equity accounting or including your share of assets and revenue would affect the thresholds. In determining the number of employees, the Act is clear that it is all full-time and part-time employees (on a pro-rata basis), however casual employees need to be considered. For example, are they genuinely casual with varying hours / shifts each week or are they in substance a permanent member of your team but just employed on a casual basis. The thresholds need to be met at the end of the financial year and therefore entities should track their performance during the year so they are aware if they will meet the definition of a large proprietary company at year end.

Audit Lowe Down – Incorrect presentation of your liabilities could significantly affect your balance sheet

June 17, 2025

In a previous blog, we discussed the changes to the accounting standards relating to classification of current / non-current liabilities on the balance sheet. We have been receiving a number of questions on this topic and have provided some practical scenarios below as well as some actions for you as we approach 30 June reporting dates.