2020-21 Supplementary Pre-Budget Submission

In this submission, SVA proposes the establishment of a one-off Charity Transformation Fund to support charities to continue to support Australia’s economy and society beyond the Covid-19 pandemic.

This supplementary submission for the 2020-21 Budget, written at the height of the Covid-19 pandemic, called on the then Assistant Treasurer Michael Sukkar MP, Social Services Minister Anne Ruston MP, and Assistant Minister for Finance, Charities and Electoral Matters Zed Seselja MP to immediately work to protect the more than one in ten employees of charities who were facing job losses and uncertainty. The following initiatives were recommended to be included in the 2020-21 Budget:

• Create a Charities Transformation Fund to transition organisations to the ‘new normal’. (Note: the SVA Paying What it Takes Initiative has instigated in-depth research and policy documentation on this idea)
• Monitor the impact of the JobKeeper ramp-down and be prepared to extend and/or alter the policy settings if needed to provide ongoing support for charities and minimise negative effects on the broader Australian community.
• Retain JobSeeker and other payments at a higher level to mitigate the increase in service demand on charities while also stimulating the broader economy.
• Maintain and, where needed, increase funding for government contracted services delivered by charities. Funding should take into account changes to charity cost structures, including compliance, regulation and Fair Work Decisions on wage entitlements that affect service delivery charities.