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  TAX - A to HFringe Benefits TaxFBT - Non-profit organisations      Monday, 18 January 2021  

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FBT - Non-profit Organisations (Salary Sacrifice Opportunities)


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Capping of Concessional FBT
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From 1 April 2017 to 31 March 2021

From 1 April 2015 to 31 March 2017

Up to 31 March 2015

Employer

FBT concession
(Note 1)

FBT concession
(Note 1)

FBT concession
(Note 1)

Public benevolent institution (other than public hospitals) and health promotion charities

FBT exemption

(capped at $30,000)

FBT exemption

(capped at $31,177)

FBT exemption

(capped at $30,000)

Public hospitals, non-profit hospitals and public ambulance services

FBT exemption

(capped at $17,000)

FBT exemption

(capped at $17,667)

FBT exemption

(capped at $17,000)

Rebatable employers – certain non-government and non-profit organisations

FBT rebate

(capped at $30,000)

FBT rebate

(capped at $31,177)

FBT rebate

(capped at $30,000)

Religious Institutions

FBT rebate

(capped at $30,000)

FBT rebate

(capped at $31,177)

FBT rebate

(capped at $30,000)


Note 1: The capped amount is the grossed up value of the fringe benefit not the actual amount of the benefit provided.

NB! Planning Opportunity

The concession is not prorated if the employee does not work for the full FBT year.  It is only prorated if the employer is not an exempt or rebatable organisation for the full FBT year. This means that an employee who changes employers during an FBT tax year could receive the maximum benefit more than once in the same FBT year.

 


   
Exempt Organisations FBT Concession - since 1 April 2017
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Most hospitals receive a FBT exemption capped at $17,000 per employee.

$17,000 is the grossed up value of $9,010 of fringe benefits (53%).

Normal FBT on $17,000 is $7,990 (47%).

Most public benevolent institutions receive a FBT exemption capped at $30,000 per employee.

$30,000 is the grossed up value of $15,900 of fringe benefits (53%).

Normal FBT on $30,000 is $14,100 (47%).


   
Rebatable Organisations FBT Concession - since 1 April 2017
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Most charitable institutions and most non-government organisations that are income tax exempt, qualify for an FBT rebate.  As a rebatable employer, you are eligible for a rebate of 48% of the amount of FBT that would otherwise be payable.

$30,000 is the grossed up value of $15,900 fringe benefits.

For example:
Normal FBT on $30,000 @ 47% =                               $14,100
Less: Concession:$14,100 @ 48% =                       -  
$  6,768
FBT Payable                                                             =  $  7,332  (24.4%)

Refer to the links below for more details.


   
Exempt Organisations FBT Concession - 1 April 2015 to 31 March 2017
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Rebatable Organisations FBT Concession - 1 April 2015 to 31 March 2017
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Most charitable institutions and most non-government organisations that are income tax exempt, qualify for an FBT rebate.  As a rebatable employer, you are eligible for a rebate of 49% of the amount of FBT that would otherwise be payable.

$31,177 is the grossed up value of $15,900 fringe benefits.

For example:
Normal FBT on $31,177 @ 49% =                               $15,277
Less: Concession:$15,277 @ 49% =                          
$  7,486
FBT Payable                                                             =  $  7,791  (25.0%)

Refer to the links below for more details.


   
Exempt Organisations FBT Concession from 1 April 2014 to 31 March 2015
Minimize

Most hospitals receive a FBT exemption capped at $17,000 per employee.

$17,000 is the grossed up value of $9,010 of fringe benefits (53%).

Normal FBT on $17,000 is $7,990 (47%)
.

Most public benevolent institutions receive a FBT exemption capped at $30,000 per employee.

$30,000 is the grossed up value of $15,900 of fringe benefits (53%).

Normal FBT on $30,000 is $14,100 (47%).


   
Rebatable Organisations FBT Concession from 1 April 2014 to 31 March 2015
Minimize

Most charitable institutions and most non-government organisations that are income tax exempt, qualify for an FBT rebate.  As a rebatable employer, you are eligible for a rebate of 48% of the amount of FBT that would otherwise be payable.

$30,000 is the grossed up value of $15,900 fringe benefits.

For example:
Normal FBT on $30,000 @ 47% =                                $14,100
Less: Concession:$14,100 @ 48% =                       -   
$  6,768
FBT Payable                                                             =   $  7,332  (24.4%)

Refer to the links below for more details.


   
Exempt Organisations FBT Concession pre 31 March 2014
Minimize

Most hospitals receive a FBT exemption capped at $17,000 per employee.

 

$17,000 is the grossed up value of $9,095 of fringe benefits (53.5%)

 

Normal FBT on $17,000 is $7,905 (46.5%)


 

Most public benevolent institutions receive a FBT exemption capped at $30,000 per employee.

 

$30,000 is the grossed up value of $16,050 of fringe benefits (53.5%)

 

Normal FBT on $30,000 is $13,950 (46.5%)

 


   
Rebatable Organisations FBT Concession pre 31 March 2014
Minimize

Most charitable institutions and most non-government organisations that are income tax exempt, qualify for an FBT rebate.  As a rebatable employer, you are eligible for a rebate of 48% of the amount of FBT that would otherwise be payable.

$30,000 is the grossed up value of $16,050 fringe benefits.

For example:
Normal FBT on $30,000 @ 46.5% =                             $13,950
Less: Concession:$13,950 @ 48% =                       -   
$  6,696
FBT Payable                                                             =   $  7,254  (24.2%)

Refer to the links below for more details.


This page was last edited on 5 January 2021

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