These exemptions have now been extended until 1 November 2026, subject to a new revenue threshold.
What is the extension?
For the charities sector, the limitations on the use of fixed term contracts will not apply for contracts entered into up until 1 November 2026 (extending the deadline from 1 November 2025). This is subject to an additional requirement that for fixed term contracts entered into on or after 1 November 2025 and prior to 1 November 2026, the charity's annual revenue must fall under a threshold.
What is the threshold for charities?
A charity's total avenue revenue must be less than $10 million for the exemption to apply. If the charity reports to the Australian Charities and Not-for-profits Commission as part of a group, the total avenue reported by that group must be less than $10 million.
Is my charity affected?
Your charity may be affected if it has been relying on the following exemption to use fixed term contracts.
The exemption applies if:
- the employer is a registered charity
- the role is funded (wholly or partly) by government grants, another registered charity, or through a testamentary gift or contribution
- the work is to be performed for a specific program or project that the funding relates to
- if the employee is employed or was previously employed by the registered charity, the contract can't result in an employment term over seven years
- the funded project or program runs for five years or less
- the term of the contract is substantially the same as the project
- the employee is not covered by the Higher Education Staff Award or Higher Education General Staff Award
- the funding was granted on or after 1 November 2024
- the contract starts after 1 November 2024 and before 1 November 2026, and
- for fixed term contracts entered into after 1 November 2025 and prior to 1 November 2026, the employer meets the threshold of total annual revenue.
What else is changing?
The exception has been:
- extended until 1 November 2026 for the medical or health research sector, subject to additional requirements
- made ongoing for certain fixed term contracts in the organised sport sector, and the high performance sport sector, and
- ended for certain fixed term contracts in the higher education sector and for employees engaged at a public hospital.
For more information, check out our recently updated fact sheet on fixed term contracts and the guidance from the Fair Work Ombudsman.
