Fixed-term contracts for charities: changes from 1 November 2026
From 1 November 2026, eligible registered charities have ongoing access to an exception from the usual fixed-term employment contract limits. The change gives organisations greater certainty when planning funded projects, provided each contract meets the eligibility requirements.
The 2026 amending regulations remove the previous expiry date and tighten the funding test for contracts entered into from 1 November 2026. Charities should review new contracts and proposed renewals against the updated rules.
Check the charity and its revenue
The exception requires registration as a charity with the Australian Charities and Not-for-profits Commission (ACNC) and total annual revenue below $10 million. It does not cover every organisation operating on a not-for-profit basis.
ACNC group reporting also matters. Where the reporting group’s revenue is $10 million or more, the charity is treated as having revenue of $10 million or more unless it provides evidence of its own revenue below $10 million that would satisfy a reasonable person. The group test uses the most recent completed financial year for which statements are available before the contract is entered into.
Check where the funding comes from
More than 50% of the funding for the position must come from one or a combination of qualifying sources:
- Government funding through a grant or procurement, subject to exclusions.
- Another ACNC-registered charity, excluding the employing charity and its associated entities.
- A testamentary gift or contribution, such as funding through a will, for the employing charity’s charitable purpose.
Excluded government funding includes payments to or for individuals with an entitlement under legislation, and Commonwealth Home Support Programme payments. Check the detailed funding conditions before relying on the exception.
Match the contract to the project
The work must relate to a specific funded program or project lasting no more than five years, including any time already elapsed. The contract must substantially match the project’s duration or remaining duration. For an existing or former employee, the proposed contract must not take continuous or substantially continuous employment beyond seven years.
Qualifying funding arrangements must take effect on or after 1 November 2024. At the time the contract is entered into, the employee must not be covered by either the Higher Education Industry Academic Staff Award 2020 or the Higher Education Industry General Staff Award 2020. The Fair Work Ombudsman’s updated guidance explains the exception.
Keep the evidence with the decision
Before signing or renewing, review the funding across the proposed contract period, confirm project dates and employment history, and retain the supporting evidence. Employers must still provide the Fixed Term Contract Information Statement when entering the contract or as soon as possible afterwards.
Contact The BelRose Group to discuss your workforce arrangements and next steps.
Adapted from our November 2026 newsletter. General information current at 2 November 2026; seek advice about your circumstances.