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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Practice Update – November 2026

November 4, 2026

ATO to continue accepting credit cards until 30 June 2027, but the clock it still ticking Last month, in our Practice Update for October 2026 ( see here ), we noted the Australian Tax Office ( ATO ) announced it will stop accepting credit cards as a payment method after 30 November 2026, following the Reserve Bank of Australia’s ( RBA ) ban on card surcharges from 1 October 2026. The ATO has since confirmed that it will continue to accept credit card payments for tax obligations until 30 June 2027 . After 30 June 2027, taxpayers who wish to continue using a credit card to meet their tax obligations may continue to use third-party payment providers as outlined at www.ato.gov.au/howtopay What do these change mean for you? The extension does not cancel the planned withdrawal of direct credit card payments. From 1 July 2027, you will need to use another method to pay the ATO directly. Available alternatives include: Debit card BPAY Bank transfer Direct debit Payment at Australia Post (where available) International money transfer services (where applicable) Some third-party payment providers may continue to offer ways to pay tax using a credit card after the deadline. However, these services may charge additional fees and take longer to process payments. Check the total cost, processing time and payment conditions before relying on one. Why does your payment method matter? Credit cards can help bridge short-term cash-flow gaps, but the convenience comes at a cost. Interest, annual fees and other charges can erode the benefit, particularly if you regularly carry a balance. There is also a risk that a payment will not be processed in time, potentially leaving you with an overdue tax liability and additional interest. Switching to BPAY, bank transfer or direct debit may provide a simpler and more predictable way to manage tax payments. The right option will depend on your circumstances, including when funds are available in your business account and whether you need to retain flexibility over payment dates. Pay particular attention if you have an existing ATO payment plan linked to a credit card. The ATO has been contacting affected taxpayers, but you should check your own arrangements rather than assume they will continue unchanged. Confirm how future instalments will be paid and allow enough time to update the payment method before the deadline. What should you do now? Use the extended timeframe to prepare rather than leaving the change until the last minute. Review your current arrangements. Check whether you use a credit card for one-off tax payments, regular instalments or an ATO payment plan. Choose an alternative. Consider which payment method best suits your cash-flow cycle, taking account of fees and processing times. Update recurring payments early. Make sure any new arrangements are in place well before 30 June 2027 and check that payments are processed successfully. Review your cash flow. If you rely on the credit card interest-free period to manage tax liabilities, consider whether you need to set aside funds earlier or adjust your payment planning. Seek advice if needed. If tax payments are putting pressure on your cash flow, speak with us early so we can help you review your position and consider practical ways to manage upcoming liabilities. The extension to 30 June 2027 gives businesses more time to adjust, but it should not be mistaken for a permanent reprieve. Planning ahead can help you avoid unnecessary fees, missed payments and last-minute disruption when the ATO’s direct credit card facility closes.

Practice Update – October 2026

October 7, 2026

ATO to stop accepting credit cards as payment method after 30 November 2026 The Australian Tax Office ( ATO ) has announced it will stop accepting credit cards as a payment method after 30 November 2026. The move follows after the Reserve Bank of Australia’s ( RBA ) Review of Merchant Card Payment Costs and Surcharging, where the RBA concluded that “it is in the public interest” to scrap surcharging for all designated card networks from 1 October 2026 (including EFTPOS, Mastercard, and Visa). It said that as a government agency, the ATO has decided it would not be appropriate for the cost of credit card merchant fees to be transferred to the community. The ATO recognises that some taxpayers currently rely on credit card payments to manage their tax payments and understands this change may require some adjustments. The ATO is writing directly to those who currently have a payment plan linked to a credit card to explain the changes and outlining the steps they need to take. There are alternative payment options available for taxpayers, including direct deposit, direct debit from a debit card, direct debit from an Australian cheque or savings account, Government EasyPay, in person at Australia Post, by mail, or international money remitter. The ATO said it is committed to helping taxpayers transition to alternative payment methods and will continue to support those experiencing financial hardship or other circumstances that make it difficult to meet their obligations. Alternative payment options for taxpayers are outlined at www.ato.gov.au/howtopay Taxpayers who need extra support are encouraged to visit www.ato.gov.au/supporttolodgeandpay , contact the ATO on 13 11 42 during business hours or speak with their registered tax professional.

Tax Alert - Draft legislation offers alternative to restructuring and avoid the 30% minimum trust tax

September 4, 2026

Yesterday, Treasurer Jim Chalmers released draft legislation to implement the key components of the 30% minimum trust tax on discretionary trusts announced in the Federal Budget during May 2026.