Rebatable employers

Rebatable employers are certain non-government, non-profit organisations.

Those that qualify for an FBT rebate include:

• registered charities who are an institution; who are not established under a government law and who are endorsed as a charitable institution for these purposes
• certain religious, educational, scientific or public educational institutions
• trade unions and employer associations
• non-profit organisations established to encourage music, art, literature or science
• non-profit organisations established to encourage or promote a game, sport or animal races
• non-profit organisations established for community service purposes
• non-profit organisations established to promote the development of aviation or tourism
• non-profit organisations established to promote the development of Australian information and communications technology resources
• non-profit organisations established to promote the development of Australia’s agricultural, pastoral, horticultural, viticultural, aquacultural, fishing, manufacturing or industrial resources.

From 3 December 2012, charities must be registered with the ACNC and endorsed by us to access this concession – this would affect religious and charitable institutions.

Charities that were endorsed by us as income tax exempt charities immediately before 3 December 2012 are automatically registered with the ACNC – they don't need to re-register.

Charities that were not endorsed by us as income tax exempt charities before 3 December 2012 must register as a charity with the ACNC and then be endorsed by us to access charity tax concessions, including the FBT rebate for registered charities.

For more information about ACNC registration, phone the ACNC on 13 ACNC (13 22 62) or visit the ACNC websiteExternal Link.

To find out more about eligibility for this concession, including endorsement, phone us on 1300 130 248

1 to 13

Complete these items in the same way as a taxable employer would – see Taxable employers.

14 Calculated fringe benefits taxable amounts

Complete items 14A and 14B in the same way as a taxable employer would – see Taxable employers.

Item 14C does not apply to rebatable employers.

A rebatable employer must leave item 14C blank.

15 to 16

Complete these items in the same way as a taxable employer would – see Taxable employers.

17 Aggregate non-rebatable amount

This item only applies if you are a rebatable employer.

If you are a rebatable employer, the total grossed-up value of benefits you can provide to each employee, without losing the existing concessions, is $31,177.

If the total gross value of the fringe benefits you provided to an individual employee exceeds $31,177, you cannot claim a rebate for the FBT liability on the excess amount. This is called the ‘aggregate non-rebatable amount’ and you must show it at item 17. Calculate this amount using the following steps.

Step	Action
1	For each employee, work out the employee’s individual fringe benefits amount. From that amount, identify those fringe benefits that are GST-creditable benefits. GST-creditable benefits are benefits you, or a member of your GST group, were entitled to a GST credit on.
2	Work out the employee’s share of the taxable value of excluded fringe benefits. For an outline of those excluded fringe benefits, refer to Reportable fringe benefits. The following excluded fringe benefits are not included in the notional taxable value of benefits you provided to the employee: those benefits considered to be providing meal entertainment car parking fringe benefits entertainment facility leasing expenses.
3	Identify those excluded fringe benefits that are GST-creditable benefits – that is, where the provider was entitled to a GST credit on their acquisition. Add this amount to step 1. This is the type 1 individual base non-rebatable amount.
4	Gross up the type 1 individual base non-rebatable amount by multiplying it by 2.1463.
5	Identify those fringe benefits and excluded fringe benefits that are not GST-creditable benefits – that is, where you or a member of your GST group were not entitled to a GST credit on your acquisition. This is the type 2 individual base non-rebatable amount.
6	Gross up the type 2 individual base non-rebatable amount by multiplying it by 1.9608.
7	Add the grossed-up type 1 individual base non-rebatable amount and the grossed-up type 2 individual base non-rebatable amount. The result is the individual grossed-up non-rebatable amount.
8	Subtract $31,177 from the individual grossed-up non-rebatable amount for each employee. If the individual grossed-up non-rebatable amount for an employee is equal to or less than $31,177, the amount calculated under this step is nil.
9	Add together all the amounts calculated above for each employee.
10	Multiply the total amount calculated under step 9 by the FBT rate of 49%. The result is your aggregate non-rebatable amount for the FBT year. If your aggregate non-rebatable amount is nil, place zero at item 17.

18 Amount of rebate

Show at item 18 the amount of rebate you are entitled to. If you complete item 18, you must also complete item 17, even if the amount is nil.

Use the following formula to calculate the rebate amount:

49%

x

(gross tax – aggregate non-rebatable amount)

x

rebatable days in year _______________________ total days in year

Gross tax is the amount at item 16 – that is, the total amount of tax calculated on the fringe benefits taxable amount.

The aggregate non-rebatable amount is the part of the taxable value of fringe benefits you cannot obtain a rebate for, calculated at item 17.

Rebatable days in the year means the number of days during the FBT year that you qualified as a rebatable employer.

The total days in the year means the number of days you were an employer.

19 Sub-total

Show at item 19 the amount at item 16 minus the amount (if any) at item 18.

You would show the figures on the return at items 15 to 19 as:

20 to 25

Complete these items in the same way as a taxable employer would – see Taxable employers.