Volunteers keep many Australian nonprofits running. They staff events, drive vehicles, answer phones and sit on boards. Because they are unpaid, some groups assume the usual workplace rules do not reach them. That is not quite right.
Tax and safety laws both have something to say about volunteers. Getting the basics clear protects your volunteers and your organisation. It also helps you treat them with the respect they deserve. This guide covers the main points for a nonprofit manager or board.
Who counts as a volunteer
The Australian Taxation Office says there is no legal definition of a volunteer for tax purposes. It describes a volunteer as someone who does not work under a contractual obligation for payment. Employees and independent contractors are not volunteers. So the first question is always whether the person is really one of those.
A title on a form does not decide this. If someone works set hours under direction and receives regular pay, calling them a volunteer may not hold up. Employees have legal entitlements that volunteers do not. If you are unsure about a role, the Fair Work Ombudsman and community legal services can help.
Clear role descriptions help everyone. Write down what each volunteer role involves and who supervises it. Keep the language about help and contribution, not wages and hours owed. A short volunteer agreement can set out what each side expects.
Paying volunteers for costs and thanks
Many groups cover volunteers’ costs or give a small gift of thanks. The ATO notes these payments go by many names, including honorariums, reimbursements and allowances. They can be cash, non cash benefits or both. Each kind of payment can be treated differently for tax.
The ATO says volunteers generally do not pay tax on payments or benefits they receive as volunteers. It also says nonprofits are generally not liable for PAYG withholding or fringe benefits tax on them. Your organisation generally needs GST registration to claim GST credits on volunteer purchases and reimbursements. The ATO notes some exceptions apply.
One trap is worth knowing. If a volunteer supplies goods or services in the course of their own business and does not quote an ABN, you may need to withhold from the payment. The ATO explains this on its page about volunteers in nonprofit organisations. Keep receipts for every reimbursement so your records match.
Volunteers and work health and safety
Safety law is where many nonprofits get caught out. Safe Work Australia’s guide to work health and safety for volunteers explains that a volunteer is a worker under the model work health and safety laws. This applies when the organisation also employs paid workers. Covering a volunteer’s out of pocket expenses does not change that.
An organisation in that position must look after the health and safety of its volunteers, so far as is reasonably practicable. That covers physical and mental health. In practice, volunteers get the same protection as paid staff. Safe Work Australia lists examples of what this can mean.
- Training, information and instructions so the work can be done safely.
- Personal protective equipment where the task calls for it.
- First aid facilities or first aid training.
- Information on emergency procedures and how to report hazards and incidents.
- Consulting volunteers on health and safety matters.
Your premises matter as much as your procedures. Fire equipment, exits and alarms need regular checks. Our article on how fire protection maintenance contracts work gives a sense of what servicing involves. Clean, well kept shared spaces help too, and our piece on office couch cleaning covers one easily missed area.
Groups run entirely by volunteers
Some small groups have no paid staff at all. Safe Work Australia calls these volunteer associations. They are groups of people working together for community purposes that employ no paid workers. Volunteer associations are not covered by the model WHS Act.
That does not mean safety can be ignored. Safe Work Australia still encourages these groups to follow safe work practices. Other laws, such as negligence, can still apply. The moment you hire even one paid worker, the WHS duties start to apply.
What volunteers must do
Volunteers who are workers under the WHS laws have duties of their own. They must take reasonable care for their own health and safety. They must not harm others, and they must follow reasonable safety instructions. They should also cooperate with reasonable policies.
Board members are a special case. A volunteer is an officer if they make or help make decisions affecting the whole or a large part of the organisation. Officers must exercise due diligence, such as keeping up to date on safety matters. Safe Work Australia says a volunteer officer cannot be prosecuted for failing their officer duties, though they can be prosecuted as a worker.
The model WHS laws have been adopted in every state and territory except Victoria, which has its own safety laws. Some states have made minor changes to the model laws. Check with your state safety regulator for the rules where your group works. Rules can also change over time.
Recruiting and keeping good volunteers
Clear rules make volunteering more appealing, not less. People like to know what they are signing up for. Your website is often the first place they look. Our guide to human behaviours in web design explains how visitors scan pages and decide to act.
Make your volunteer page easy to find and plain to read. Many people now search by speaking to their phone, using full questions. Content that answers those questions directly can help, as covered in our article on optimising content for voice search. Answer the questions new volunteers ask most.
Frequently asked questions
Do volunteers pay tax on reimbursements?
The ATO says volunteers generally do not pay tax on payments or benefits they get as volunteers. Some payments can still be assessable depending on their nature. The ATO website explains the different types. Check it if you pay regular allowances.
Are our volunteers covered by WHS laws?
If your organisation employs paid workers, your volunteers are workers under the model WHS laws. You must look after their health and safety so far as reasonably practicable. Groups with no paid staff are generally not covered. State versions of the laws can differ.
Can a board member be prosecuted under WHS laws?
Safe Work Australia says a volunteer officer cannot be prosecuted for failing their officer duties. They can still be prosecuted as a worker if they fail to take reasonable care. Board members should still exercise due diligence. It is part of good governance.
This article is general information only and is not legal or tax advice. Laws differ between states and change over time, so speak with a qualified lawyer, accountant or your state safety regulator about your organisation’s situation.