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.

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Tax Alert - Planning for Superannuation Contributions before 30 June 2026

May 18, 2026

Planning for Superannuation Contributions before 30 June 2026 As the end of the financial year is approaching, we take this opportunity to remind you of the various superannuation thresholds, opportunities, obligations and changes, including topics such as: Concessional contributions Non-concessional contributions Superannuation guarantee Impending changes to superannuation from 1 July 2026

FEDERAL BUDGET 2026-27

May 12, 2026

SUMMARY AND FULL COMMENTARY UPDATES

Practice Update – May 2026

May 4, 2026

Special Topic: Payday Super changes apply from 1 July 2026, act now to be prepared! The ATO has issued further guidance on Payday Super changes that apply from 1 July 2026. In particular, the ATO released a ‘Payday Super checklist for Employers’ ( click here ), which is a good summary of the tasks that should be completed before 1 July 2026, and now is the time to act. Understanding ‘qualifying earnings’ From 1 July 2026, employers will calculate super using ‘qualifying earnings’ ( QE ) instead of the current ‘ordinary time earnings’ ( OTE ). For many employers, the new concept of QE is broader than OTE, but it should not change the amount they need to pay for their employees. However, it may require updates to payroll software configuration and reporting. Employers should review and prepare to correctly map pay codes now to meet reporting obligations and ensure readiness when their updated payroll software is available. QE include the following payments: OTE (ie. payments for ordinary hours of work), including certain types of paid leave, allowances, bonuses and lump sum payments. There are no changes to what payments are considered OTE under Payday Super. For a full list of payments which are included within OTE – click here . All commissions paid to an employee. Salary sacrifice amounts that would qualify as QE had they not been sacrificed to superannuation. Earnings paid to workers who fall under the expanded definition of employee, including payments to independent contractors paid mainly for their labour. Some payments may fall into more than one category of QE, such as commissions, and those payments are covered only once to the extent of the overlap in categories. The total QE for a pay period is determined by aggregating all qualifying payments made to or for an employee on the relevant day, forming the basis for calculating superannuation guarantee ( SG ) contributions. Each payday, employers will need to report both year-to-date QE and superannuation liability for each employee through Single Touch Payroll ( STP ). Employers should confirm their updated payroll software has this reporting functionality built in. Understanding new timing requirements for super contributions From 1 July, employers are responsible for ensuring that super contributions reach super funds within 7 business days of the relevant payday , calculated on the QE amount. Super funds will have 3 business days (down from 20 days) to allocate or return contributions that cannot be allocated. There is currently no obligation for the Super fund to confirm that an employee contribution has been allocated successfully, however if 3 days have elapsed we can accept that the employee contribution has been processed correctly. A super payment only counts once it is received by the employee’s superannuation fund, not when it is submitted. Submitting on day seven may not allow enough time, and we note there is no extension for rejected payments - so employers must ensure there is enough time to correct any errors and for SG contributions to reach funds within the 7 business days. Understanding importance of testing payroll software before 1 July 2026 Prepare now, review your payroll system readiness, engage with payroll software providers and ensure the functionality for these new changes will be supported. It has been widely suggested that new payroll software functionality is tested and everything is running smoothly before 1 July. Note that super payments for pay cycles in July 2026 may be due before your final quarterly super payment is due on 28 July 2026 (ie. for the June 2026 quarter, being April to June). Contributions received on or before 28 July 2026 will reduce any super owing for the June 2026 quarter first . If there is any remainder, contributions will then be used under Payday Super. If you pay on time for the June 2026 quarter and Payday Super you do not risk incurring penalties. The ATO has provided an example of this issue ( click here ), and explains that if the employer pays the correct amount for the June 2026 quarterly payments and the first Payday Super payment (ie. for the first pay cycle in July, which could be weekly or fortnightly) is paid in full both contributions will be made on time. Understanding cash flow pressure Employers may have multiple super payments due during July 2026, including: super payments for each Payday (after 1 July 2026); plus the final quarterly super payment due 28 July, for June 2026 quarter (ie. April to June). Employers should review their expected pay cycles for July 2026 to understand the impacts of paying super each payday after 1 July 2026. Employers may consider setting aside additional funds to make sure they can meet their obligations. If cashflow permits, employers can pay the June 2026 quarter super on or before the first payday in July (ie. the first pay cycle in July, which could be weekly or fortnightly). If an employer can do this, your business will have: a more seamless changeover to the Payday Super system; and time to correct any rejected payments before the 28 July deadline. We recommend that all employers take actions as soon as possible to be best prepared for the Payday Super changes coming in from 1 July 2026. If you require assistance, please contact your Lowe Lippmann representative.