Welcome changes to the JobKeeper turnover test for charities

The Treasurer has announced that all charities (excluding universities and schools) will be able to exclude government revenue in the 15% revenue drop test for JobKeeper eligibility.

The Association of Australian Medical Research Institutes (AAMRI) welcomes this significant development which will mean even more medical research institutes will be eligible for the subsidy.

The changes will allow charities to elect to exclude government revenue from the JobKeeper turnover test. This will help to ensure that charities delivering vital services on behalf of the government, such as medical research, will be eligible for the subsidy.

AAMRI is pleased that the Government has now met most of the sector’s suggested changes for a fairer test for the medical research institute sector. Funding for medical research has already taken a hit with philanthropy and gift giving down. This funding will allow critical multi-year research to continue and be completed.

Unfortunately, there is no movement on university eligibility, and many medical research institutes conducting essential COVID-19 work, and other lifesaving research, are housed within universities.

Medical research institutes have been demonstrating their agility to repurpose existing research and channel resources and knowledge where it is needed during the current COVID-19 crisis. As institutes continue to support the community in finding new and innovative ways to treat and manage COVID-19, it is greatly appreciated that the Government continues to support the sector.