Attracting and retaining good staff is essential for not-for-profit organisations.
If you’ve given your employees perks such as car parking or gym memberships, you should consider the fringe benefits tax (FBT) implications.
Depending on your type of organisation, certain benefits you provide may receive concessional FBT treatment subject to capping thresholds.
While packaged extras can be a great bonus on top of salary and wages, they can still be subject to FBT and may need to be included in your employees' reportable fringe benefits amount (RFBA).
Keen to learn more? Everything in the list below could be subject to FBT:
- allowing an employee to use a work car, for private purposes
- tickets to concerts, shows or sports events
- reimbursed school fees
- discounted loans
- salary sacrifice arrangements.
On the other hand, the following aren't considered to be fringe benefits:
- salary and wages
- employer contributions to complying super funds
- benefits provided to volunteers and contractors.
If you’re giving your staff extras that are subject to FBT, take these 4 steps:
- Identify the types of fringe benefits you give your staff.
- Determine the taxable value using approved valuation methods relevant to each fringe benefit.
- If required, lodge an FBT return by the due date – you may have longer if a tax agent lodges electronically for you.
- Keep records that demonstrate your calculations and support your FBT position and your employees' RFBA.
Knowing your FBTs starts with understanding how FBT works. Visit ato.gov.au/FBT or talk to your trusted tax professional for the best advice on managing your FBT obligations.
If your not-for-profit is offering perks and benefits on top of salary and wages, we can help with information about FBT.