The Coalition welcomes the Albanese Government’s last-minute decision to extend the Fair Work Act fixed-term contract exemption for charities.

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“This is a welcome backdown from a government that has been dragged kicking and screaming to do the right thing,” said Shadow Assistant Minister for Competition, Charities and Treasury, Senator Dave Sharma.

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“Only after sustained pressure from the Coalition, and a chorus of concern from the sector, has Minister Rishworth acted.”

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Under the extension, charities with annual revenue under $10 million will retain the exemption until 1 November 2026, avoiding an imminent cliff edge that would have disrupted services and jobs across the sector ahead of Christmas.

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The exemption allows small and medium charities to continue aligning employment contracts with funding cycles, rather than being forced into permanent arrangements that funding does not support.

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While the extension is a relief for smaller organisations, it still leaves larger charities and health and research institutions exposed, with no clarity on whether they will also receive flexibility beyond 1 November.

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“Charities shouldn’t have to wait until crisis point for the government to act,” Senator Sharma said.

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“The Minister must now work with the sector on a permanent, fair and workable solution for all charities, large and small, that reflects the reality of short-term funding and grants.”

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“The Coalition will continue to hold the government to account to ensure no charity, hospital or research project is forced to cut services or staff because of Labor’s bad law.”

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