There has possibly been no Budget announcement more anticipated than the 2021 Federal Budget handed down by Treasurer Josh Frydenberg on Tuesday 11 May 2021.
Tabled in a time of immense uncertainty, but in a context of relative optimism as Australia’s economic rebound from the COVID-19 pandemic exceeded projections cast 12 months ago, tracking the funding injections across society was a hot priority for the Grant’d team.
While the Federal Budget by no means encompasses the full spectrum of government based support, it does give quite a strong indication of where current values lie and provides a forecast for where we want to head and how we plan to allocate resources to get there.
So how was this year’s budget received?
Well, that of course, depends on who you ask.
Broadly speaking, the budget has been seen as a win for businesses, yet a missed opportunity for the social-impact sector alongside our society and economy overall.
In its Federal Budget 2021 Insights, PWC has categorised this recovery focused budget as positioning business front and centre of Australia’s return to growth.
And despite COVID-19 revealing just how vital the role of charities and non-profits are in supporting communities in times of immense need, the 2021 budget received a lukewarm response from many across the sector, who saw it as yet another budget that exposed the blind spots across government about the vital role played by the non-profit sector in the Australian economy.
In a recent panel discussion hosted by Pro-Bono Australia, Oxfam Chief Executive Officer Lyn Morgain suggested the budget had been;
‘crafted in such a way to give an impression of care and concern within the social sector but lacked structural investment in the social infrastructure needed by both the social sector and our economy’.
Similarly, the Centre for Social Impact’s National Research Director, Professor Gemma Carey highlighted the need to
“scratch beyond the budget’s surface” and “dig beneath the flashy headlines” to truly understand where the money is going.
They’re absolutely right. Statements of big dollars need to be followed up with an expose of how those dollars are broken down.
So that’s exactly what we’ve done.
We’ve combed through the Budget papers to unpack key elements of the Budget that will affect the non-profit sector and pulled out where the funding is being allocated within the social impact space.
Our thoughts?
While there are some significant funding injections into important areas including aged care, mental health and domestic violence measures, this budget does not appear to capitalise on the opportunities offered by the non-profit sector to drive our economy forward.
Supporting non-profits to thrive has the potential to be a major driver of jobs growth. Charities total economic contribution is equivalent to 8.5% of GDP, and accounts for 10% of employment in Australia, making them a significant economic force and employment source.
The social sector also disproportionately employs women, who have been hardest hit by COVID-19 across many dimensions, including employment. A budget that invested more significantly in the social-impact sector structurally, could have enabled the government to go a step further in positioning this Budget as a ‘women’s budget’ and making amends for the serious underinvestment in women in the 2020 budget.
Finally, despite recent research showing that charity sector jobs are in industries that are expected to see strong growth over the next five years to 2025 (health care and social assistance and education and training), there appears to be limited recognition of this within the funding allocations of the budget. The estimated 360,000 jobs that are anticipated to be created through these areas alone far outweighs that of priority industries who frequently benefit from government support.
In a context where 86% of charities have reported a reduction in revenue, 77% reported significant strains on their financial operations and 52% are worried about the ability to provide their services in the current economic climate, more could have been done to support the security and sustainability of the non-profit sector who are vital to Australia’s economic rebound.
Factor in the end of JobKeeper and other supplementary payments, the strains on the non-profit sector are likely to grow at a time where need for their survival is greatest. In fact, Foodbank’s recently released 2020 Hunger Report revealed that those seeking help to feed their household at least once a week doubled in 2020, while an estimated five million Australians are expected to experience food insecurity in 2021.
Nevertheless, understanding where and how the Budget implicates the social-impact sector will be important for non-profits who are seeking to capitalise on the funding investments and allocations announced last week.
Here’s a snapshot of some of the key funding measures and their impact on you:
Increased reporting requirements to ATO from 2023
Measure: $1.9million in 2022-23 to build an online system to enhance the transparency of income tax exemptions claimed by NFPs. This measure is being implemented to ensure only eligible NFPs are accessing income tax exemptions.
What this means for you: Whereas previously NFPs could self-assess their eligibility for income tax exemptions with no obligation to report to the ATO, from 1 July 2023 NFPs with an ABN will need to submit online annual self-review forms
Digital advisory services for trading-based non-profits
Measure: $12.7 million in 2021-2022 to expand the Australian Small Business Advisory Service Digital Solutions program to reach up to 17,000 small businesses as part of the Digital Economy Strategy
What this means for you: Incorporated non-profits, who hold an ABN, are GST registered and with trading activities that form a sufficiently significant portion of overall activities may be able to access low cost digital advisory services to support things like website and online selling, social media and digital marketing, software and online security and data privacy
Grant’d team thoughts: while many organisations lack confidence in their use of technology and in keeping pace with the digital world, many many more simply don’t have the funds to support the purchase of digital products to support their adaptation. We’d like to see funding injected into opportunities that financially resource organisations with digital tools and services.
Loan guarantees for non-profits
Measure: The Government will support the economic recovery of, and provide continued assistance to, firms that received JobKeeper or are eligible flood-affected businesses through the SME Recovery Loan Scheme.
What this means for you: Non-profits that received JobKeeper or those that were affected by floods may be able to access secured or unsecured loans with interest rates capped at 7.5% and may be able to access repayment holidays of up to 24 months
Grant’d team thoughts: we’d prefer to see funding to support the economic recovery of non-profits in the form of accessible, flexible grants, rather than loans which place financially strained organisations in more debt
Supporting communities to build Australia’s resilience
Measure: As part of the Government’s $1.2 billion investment over five years to improve Australia’s capacity to better prepare, respond and recover from natural disasters, a new National Recovery Resiliency Agency is being is being established to support local community initiatives
What this means for you: $615.5 million in grants over six years from 2021-2022 for the Preparing Australia program. Focus on projects that support public and private disaster reduction and resilience and $280 million in grants over three years from 2021-2022 for projects in bushfire affected areas as part of the wider $2 billion National Bushfire Recovery Fund
The Arts Sector Support – a fresh injection of funds
Measure: A $222.9 million over two years (from 2020-21) to continue to support the arts sector through the impacts of COVID-19.
What this means for you: Additional $125.6 million injected into the Restart Investment to Sustain and Expand Fund to provide grants to support events or productions;
$50.8 million to extend the Temporary Interruption Fund to support local film and television sector to secure funding to commence productions
$11.4 million dispersed across the existing Regional Arts Fund, Festivals Australia program and the Indigenous Visual Arts Industry Support program
$10 million to music charity Support Act to provide further relief for artists and art workers
$5.0 million over two years from 2020-21 to support national performing arts touring through the Playing Australia program.
Building Community Infrastructure
Measure: $28.2 million provided over two years from 2021-2022 to support small capital projects in local communities
What this means for you: Additional funding round (Round 7) of the Stronger Communities Programme, providing non-profits with funding between $2,500 and $20,000 for small infrastructure projects that deliver social benefits for local communities across Australia
Supporting Regional Australia
Measure: The Government will provide $348 million over four years from 2021-2022 (and an additional $0.1 million) in 2025-2026) for a package of measures to support regional Australia’s sustainability, resilience and job creation.
What this means for you: $256.5 million over four years for round 6 of the Building Better Regions Fund to support community infrastructure and capacity building projects in regional areas; $6.1 million over two years to establish the Rebuilding Regional Communities program to assist community organisations and small enterprises in regional Australia to recover from the impacts of COVID-19
Women’s Leadership and Empowerment
Measure: $1.8 billion over five years to improve women’s workforce participation and economic security as part of the Second Women’s Economic Security Package
What this means for you: $38.3 million over five years to increase grant funding available through the Women’s Leadership and Development Program (note: non-corporate bodies are not eligible for this; however Aboriginal Corporations are);
$13.9 million over four years to establish an Early State Social Enterprise Foundation focused on improving capacity building and financial support for early-stage social enterprises that improve the safety and economic security of Indigenous women
$12.2 million over two years to fund an additional round of the National Careers Institute Partnership Grants to support projects that facilitate career opportunities and pathways for women
Women’s Safety
Measure: $998.1 million over four years for initiatives to reduce, and support the victims of Family, Domestic and Sexual Violence (FDSV) against women and children. This includes $507.3 million over four years to implement and enhance a range of responsive programs and initiatives that support women and children and $92.4 million over four years for prevention focused programs
What this means for you: $261.4 million over two years to establish new National Partnership with the states and territories to expand the funding of frontline FDSV support services
$164.8 billion over three years for two year trial program to provide financial support of up to $5,000 for women fleeing a violent relationship
$26.0 million over four years to better support Aboriginal and Torres Strait Islander women and children who have experienced or are experiencing family violence
$25.9 million over four years for a range of further measures to support women affected by FDSV including expanding the Safe Places program
Mental Health
Measure: $2.0 billion over four years for the National Mental Health and Suicide Prevention Plan
What this means for you: $61.6 million over four years to expand the National Suicide Leadership and Support Program, increasing investment in suicide prevention activities of non-profits; $12.8 million over four years from 2021-22 to establish the National Suicide Prevention Office which will oversee the national approach to suicide prevention
First Nations Communities
Measure: $243.6 million over five years from 2020-2021 to improve economic, social and education outcomes for Indigenous Australians.
What this means for you: $36.7 million over four years added to the Prescribed Body Corporate Capacity Building program;
$10 million over two years for Indigenous enterprises and community organisations to improve their access to off-grid solar power systems, stockyards, greenhouses and water security equipment
$5 million across two years for grants to improve the food security of remote Indigenous communities
$34.1 million over four years from 2021-22 for a range of further measures aimed at the prevention of FDSV, including programs aimed at working with those at risk of committing FDSV, preventing and responding to FDSV against women with a disability and supporting better FDSV responses for diverse communities.
Veteran Wellbeing and Support
Measure: $60.7 million over four years to continue support for highly vulnerable veterans and $12.1 million over four years to expand support programs for veterans and their families
What this means for you:
$4.7 million over four years from 2021-22 to implement service provision standards and evaluation for the Building Excellence in Support and Training grant program to support claims and wellbeing advocacy services to achieve positive outcomes for veterans
$10.7 million over four years from 2021-22 to establish Veteran Wellbeing Centres in Tasmania and South-East Queensland that will provide veterans with access to local services including health services, mental health support, community organisations, advocacy and wellbeing support
Official Development Assistance – supporting overseas communities
Measure: $4billion between 2021-2022 to contribute to a ‘resilient Indo-Pacific’ through the Partnerships for Recovery program – focusing on health, security stability and recovery of the Indo-Pacific
What this means for you: $175.8 million of this distributed to NGOs, Volunteers and Community programs
As this funding gets further dispersed and allocated across states and territories and more details and dates are announced regarding grant and funding opportunities, we’ll be keeping you up to date across our community Facebook group: Australian Grants and Funding Support by Grant’d.
And of course, if you’re looking for support to secure any of the upcoming funding opportunities, please get in touch at hello@grantd.com.au