SA political parties poised to reap an estimated $200K in JobKeeper payments, claiming coronavirus hit to donations and membership

The state Liberal and Labor branches have applied for close to $100k in JobKeeper payments, both citing a loss of income during the pandemic shutdown.

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South Australia’s major political parties are banking tens of thousands of dollars in COVID-19 hardship payments, claiming that diving donations and memberships make them eligible.

Inquiries by The Advertiser reveal both the state Labor and Liberal branches have applied for the taxpayer-funded JobKeeper payment, and are expected to pocket upwards of $200,000.

Prime Minister Scott Morrison launched the unprecedented scheme in March, pitching it as a bid to keep workers connected to businesses as coronavirus lockdowns hit.

The $1500 a fortnight wage subsidy is payable for the period between March and September, but the Federal Government under pressure to extend the scheme in some sectors.

It is understood the state political parties are citing a drop in revenue from memberships, union affiliation fees and donations are their declining sources of income and using the JobKeeper cash to support the ongoing employment of head office staff.

Small businesses must show they have had a drop in turnover of at least 30 per cent in a year.

The federal election was held in 2019, typically high point for party incomes.

SA Liberal state director Sascha Meldrum said: “Like other employers, the Liberal Party qualified for the JobKeeper program to preserve the jobs of our staff”.

Ms Meldrum was unable to say how much the party was likely to receive.

However, a well-placed Liberal source said $30,000 had already been received and the sum was likely to grow to $80,000 over the expected life of the JobKeeper scheme.

Neither party is seeking access to a $10,000 state-based stimulus cash grant announced by Treasurer Rob Lucas to help small businesses hit by coronavirus lockdowns.

SA Labor state secretary Reggie Martin said: “Like so many organisations, Labor’s administration office was significantly impacted by the COVID-19 pandemic”.

“Applying for JobKeeper meant that we did not need to lay off staff even though we had to shut our doors for almost three months,” Mr Martin said.

It estimated SA Labor’s total JobKeeper return will be close to $130,000.

It is understood Labor has only claimed for the hit to its headquarters operations, which is impacted by private donations and union fees.

It is understood losses incurred by its corporate fundraising arm SA Progressive Business, which raises money from the big end of town through lunches and other functions, have not triggered JobKeeper applications.

There are also capacities for not-for-profits, charities and religious institutions to apply.

The Australian Tax Office says it is ensuring the integrity of the JobKeeper stimulus measures with a strong compliance regime, and testing eligibility.