For more information about self-assessing your entitlement to the FBT exemption, go to ato.gov.au/Non-profit.
The capping threshold for public hospitals, non-profit hospitals and public ambulance services is different to that for eligible public benevolent institutions or health promotion charities.
14 Calculated fringe benefits taxable amounts
You must complete only item 14C (and not items 14A and 14B).
14C Aggregate non-exempt amount
Write at item 14C your aggregate non-exempt amount. Your aggregate non-exempt amount is the total gross value of fringe benefits you provide to an individual employee that exceeds $17,667.
You only pay FBT on your aggregate non-exempt amount.
For the year ending 31 March 2017, the provision of salary packaged meal entertainment and entertainment facility leasing benefits form part of your aggregate non-exempt amount where the grossed-up taxable value of such benefits exceeds $5,000.
Your aggregate non-exempt amount is calculated using the same steps as a public benevolent institution or a health promotion charity (see Public benevolent institutions and health promotion charities), except for step 12 which is calculated as follows:
Step |
Action |
|---|---|
12 |
Subtract $17,667 from the individual grossed-up non-exempt amount for each employee. If the individual grossed-up non-exempt amount is less than or equal to $17,667, the amount calculated under this step is nil. |
15 to 25
Complete these items in the same way as an eligible public benevolent institution and health promotion charity would – see Public benevolent institutions and health promotion charities.
Illustration 4: Public hospital FBT return 2017
You are a public hospital that is registered for GST and provide your employees with the following fringe benefits:
- car fringe benefits to Louise and Wendy valued at $2,000 and $25,000 respectively (type 1 benefits as you are entitled to input tax credits for the provision of these benefits)
- entertainment facility leasing benefits to Louise under a salary packaged arrangement to enable her to hire a room for $5,000 at Fantasy Wedding receptions (type 2 benefit as you are not entitled to an input tax credit for the provision of this benefit)
- entertainment facility leasing benefits to Wendy by reimbursing her $15,000 for the amount of rent she paid on hiring a houseboat on her holiday (type 2 benefit as you are not entitled to an input tax credit for the provision of this benefit).
Louise's grossed-up type 1 amount is:
car fringe benefit = $4,292.60 ($2,000 x 2.1463)
Louise's grossed-up type 2 amount is:
salary packaged entertainment facility leasing benefit = $9,804 ($5,000 x 1.9608).
As the separate cap for salary packaged meal entertainment and entertainment facility leasing benefits has been exceeded (the grossed-up salary packaged benefit is $9,804), this amount is included in determining whether the capping threshold has been exceeded for benefits you provided to Louise. The aggregate exempt amount for Louise is:
= $9,096.60 ($4,292.60 + $9,804 - $5,000) which is less than the cap of $17,667.
Louise does not have a grossed-up non-exempt amount. You are not liable for FBT on the benefits you provide to Louise.
Wendy's grossed-up type 1 amount is:
car fringe benefit = $53,657.50 ($25,000 x 2.1463)
As the reimbursement of rent for the houseboat is not provided under a salary packaged arrangement it is not included in determining Wendy's individual grossed-up non-exempt amount. The capping threshold for Wendy has been exceeded and your aggregate non-exempt amount would be:
$53,657.50 - $17,667 = $35,990.50.