Changes to fixed-term employment contract rules took effect on 1 November 2026, with important implications for eligible charities and not-for-profit (NFP) organisations, particularly those receiving government funding.
If your organisation employs staff under fixed-term contracts, it’s worth reviewing whether your current arrangements meet the updated requirements.
What’s changed?
The Australian Government has made additional fixed-term contract exceptions for certain eligible charities and NFP organisations ongoing. These exceptions were previously due to expire on 31 October 2026.
However, an important funding requirement has also changed.
For contracts entered into on or after 1 November 2026, more than 50% of the funding for the particular position must come from eligible sources.
Previously, eligible funding could cover all or only part of the position.
Does your organisation qualify?
Not all NFP organisations automatically qualify for the exception.
Eligibility depends on several factors, including:
- Registration as a charity with the Australian Charities and Not-for-profits Commission (ACNC).
- Annual revenue generally below $10 million.
- The type and proportion of funding allocated to the position.
- Whether the position relates to a specific funded program or project lasting no more than five years.
- Other requirements relating to employment duration, contract terms and applicable awards.
Government grants and procurement funding may qualify, but certain government payments are excluded.
Receiving government funding alone does not automatically make an organisation eligible.
What should NFP employers do?
Organisations using fixed-term contracts should review their funding agreements, position budgets and employment arrangements before entering into new contracts.
It’s particularly important to confirm whether the organisation, the position and the proposed contract meet all relevant conditions.
For more information about managing employment obligations, explore AHR’s Human Resources services and Workplace Documentation services.
Unsure how these changes affect your organisation?
Every NFP organisation operates differently, and funding arrangements can be complex.
If you’re unsure whether these changes apply to your organisation, give Assurance HR Management (AHR) a call.
Our team can help you understand the updated requirements, review your employment arrangements and identify where further advice may be needed.
Contact AHR on 1800 577 515 or visit assurancehr.com.au.
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