Rebatable employers
Rebatable employers are certain non-government, not-for-profit organisations.
Those that qualify for an FBT rebate are:
- registered charities (other than public benevolent institutions or health promotion charities) that are an institution; that are not established under a government law and that are endorsed by us as a tax concession charity
- certain scientific or public educational institutions
- certain trade unions and employer associations located in Australia that are exempt from income tax
- not-for-profit tax exempt organisations established for
- musical purposes
- community service purposes
- not-for-profit tax exempt organisations established for the encouragement of
- science
- animal racing
- art
- a game or sport
- literature
- music
- not-for-profit tax exempt organisations established for the purpose of promoting the development of
- aviation or tourism
- Australian information and communications technology resources
- Australia’s agricultural, pastoral, horticultural, viticultural, aquacultural, fishing, manufacturing or industrial resources.
From 3 December 2012, charities must be registered with the Australian Charities and Not-for-profits Commission (ACNC) and endorsed by us to access this concession.
Charities that were endorsed by us as income tax exempt charities before 3 December 2012 are automatically registered with the ACNC – they don't need to re-register.
See also:
14 to 16
Complete these items in the same way as a taxable employer would – see Taxable employers.
17 Aggregate non-rebatable amount
Write at item 17 your aggregate non-rebatable amount.
Your aggregate non-rebatable amount is the total grossed-up taxable value of the fringe benefits you provide to an individual employee that exceeds $30,000.
You are entitled to a rebate of 47% of your FBT payable on the grossed-up taxable value of benefits you provide to each employee that does not exceed $30,000.
The FBT rebate cannot be applied to your aggregate non-rebatable amount. For the year ending 31 March 2018, the provision of salary packaged meal entertainment and entertainment facility leasing expense benefits form part of your aggregate non-rebatable amount where the grossed-up taxable value of such benefits exceeds $5,000.
The following steps will assist you in calculating your aggregate non-rebatable amount for the year ending on 31 March 2018
- Establish the employee's individual fringe benefits amount. The individual fringe benefits amount is the value of all benefits other than excluded benefits. For a list of excluded benefits, see chapter 5.2 of Fringe benefits tax – a guide for employers.
- Identify the amount of GST-creditable fringe benefits included in the amount for step 1. The result from this step is 'amount 1'.
- Identify those fringe benefits not taken into account in the calculation for step 2 (that is, the result for step 1 minus the result for step 2). The result from this step is 'amount 2'.
- Determine the employee’s share of the benefits that would be excluded fringe benefits. For a list of excluded benefits, see chapter 5.2 of Fringe benefits tax – a guide for employers. The following excluded fringe benefits are specifically not included in this calculation:
- meal entertainment benefits not provided under a salary packaged arrangement
- car parking fringe benefits
- entertainment facility leasing expense benefits not provided under a salary packaged arrangement.
- Identify the GST-creditable fringe benefits included in step 4. The result from this step is 'amount 3'.
- Identify those excluded fringe benefits that are not taken into account under step 5 (that is, the result for step 4 minus the result for step 5). The result from this step is 'amount 4'.
- Add amount 1 and amount 3 (that is, the result from step 2 plus the result from step 5). This is the type 1 individual base non-rebatable amount.
- Multiply the result from step 7 by 2.0802 (the type 1 gross-up rate). This is the individual grossed-up type 1 non-rebatable amount
- Add amount 2 and amount 4 (that is, the result from step 3 plus the result from step 6). This is the type 2 individual base non-rebatable amount.
- Multiply the result from step 9 by 1.8868 (the type 2 gross-up rate). This is the individual grossed-up type 2 non-rebatable amount
- For each employee add:
- the individual grossed-up type 1 non-rebatable amount for the year ending 31 March 2018 (that is, the result from step 8)
- the individual grossed-up type 2 non-rebatable amount for the year ending 31 March 2018 (that is, the result from step 10).
The result is the individual grossed-up non-rebatable amount for the employee.
- Subtract $30,000 from the individual grossed-up non-rebatable amount for each employee (that is, the result from step 11 minus the FBT rebate cap). If the individual grossed-up non-rebatable amount for an employee is equal to or less than $30,000, the amount calculated under this step is nil.
If you have not provided meal entertainment or entertainment facility leasing expense benefits under a salary packaging arrangement for the year ending on 31 March 2018:
- Add together the amounts calculated at step 12 for each employee. This is your aggregate non-rebatable amount.
- Multiply the total amount calculated under step 13 by 47% (the FBT rate). Write this amount at item 17.
If you have provided meal entertainment or entertainment facility leasing expense benefits under a salary packaging arrangement for the year ending on 31 March 2018 continue with the steps in the below table.
- Determine how much of the employee’s individual fringe benefits amount relates to salary packaged meal entertainment and entertainment facility leasing expense benefits.
- Determine how much of the employee’s individual fringe benefits amount relates to GST creditable salary packaged meal entertainment and entertainment facility leasing expense benefits. Multiply the result by 2.0802 (the type 1 gross-up amount).
- Determine how much of the individual fringe benefits amount relates to non-GST creditable salary packaged meal entertainment and entertainment facility leasing expense benefits (that is, the result for step 13 minus the result for step 14). Multiple the result by 1.8868 (the type 2 gross-up amount).
- Add the amounts calculated at steps 14 and 15. This is the individual grossed-up salary packaged meal entertainment and entertainment facility leasing expense benefits.
- Subtract from the amount calculated at step 12 by the lesser of either:
- $5,000, and
- the amount calculated at step 16.
- Add together the amounts calculated at step 17 for each employee. Multiply the result by 47% (the FBT rate). Write this amount at item 17. This is your aggregate non-rebatable amount.
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:
- 47% × [(item 16 – item 17) × (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 are the number of days during the year ending on 31 March 2018 that you qualified as a rebatable employer.
The total days in the year means the number of days you were an employer.
Write at item 18 the amount of rebate you are entitled to.
19 Sub-total
Subtract from item 16 the amount of rebate (if any) calculated at item 18. Write this amount at item 19 even if the amount is nil.
You must complete this item because it forms the basis of self-assessing any FBT liability.
20 to 25
Complete these items in the same way as a taxable employer would – see Taxable employers.
Example 6: Rebatable employer return
You provide the following benefits for the year ending 31 March 2018 to your employees:
- pay Mark, Sam and eight other employees' children’s school fees (an expense payment fringe benefit)
- provide Mark and Sam with cars for private use (a car fringe benefit)
- allow Mark and Sam to purchase restaurant meals on a credit card that is paid by the employer at the end of the month, under a salary packaging arrangement
The car fringe benefits are type 1 benefits because they are GST taxable supplies with an entitlement to a GST credit.
Mark's car fringe benefit calculated using the statutory formula method (GST taxable supply with an entitlement to a GST credit) |
$14,000 |
Sam's car fringe benefit calculated using the statutory formula method (GST taxable supply with an entitlement to a GST credit) |
$15,000 |
Type 1 aggregate amount |
$29,000 |
= $29,000 × 2.0802 |
|
= $60,325.80 |
|
The school fees are type 2 benefits because they are GST-free supplies with no GST credit entitlement.
10 × expense payment fringe benefits: school fees |
10 × $6,000 |
Type 2 aggregate amount |
$60,000 |
= $60,000 × 1.8868 |
|
= $113,208.00 |
|
The use of the meal card is a type 2 benefit because it is an input taxed financial supply with no GST credit entitlement.
Mark's meal entertainment fringe benefit: credit card Sam's meal entertainment fringe benefit: credit card |
$5,500 $2,295 |
Type 2 aggregate amount |
$7,795 |
= $7,795 × 1.8868 |
|
= $14,707.60 The type 2 aggregate amount is therefore 113,208.00 + 14,707.60 = $127,915.60. |
|
You have:
- a fringe benefits taxable amount of $188,240 ($60,325 + $113,208 + $14,707)
- gross tax of $88,472.80 ($188,240 × 47%).
Sam and Mark have an individual grossed-up non-rebatable amount greater than $30,000. Mark has an amount of $50,821.00, and Sam has an amount of $42,523.80. Sam's amount does not include the salary packaged entertainment as the value does not exceed the separate grossed-up cap ($2,295 × 1.8868 = $4,330.20).
The calculation of the aggregate non-rebatable amount is as follows:
- [($50,821.00 – $30,000 – $5,000) + ($42,523.80 – $30,000)] × 47%
= $13,322.05
The calculation of the rebate amount is as follows:
- 47% × ($88,472.80 – $13,322.05)
= $35,320.85
End of examplePublic benevolent institutions and health promotion charities
A public benevolent institution is a charity whose main purpose is to relieve poverty, sickness, suffering or disability.
A health promotion charity is a charitable institution whose principal activity is to promote the prevention or the control of diseases in human beings.
If your organisation is a public benevolent institution or health promotion charity, the organisation must be endorsed by us to access the FBT exemption. From 3 December 2012, a condition of our endorsement is that public benevolent institutions and health promotion charities must be registered with the Australian Charities and Not-for-profits Commission (ACNC) as a public benevolent or health promotion charity.
Organisations that were endorsed by us to access the FBT exemption for public benevolent institutions or health promotion charities immediately before 3 December 2012 are automatically registered with the ACNC – they don't need to re-register.
See also:
- For more about eligibility for this concession, including endorsement and registering, to ato.gov.au/Non-profit or phone us on 1300 130 248.
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 grossed-up taxable value of fringe benefits you provide to an individual employee that exceeds $30,000. You only pay FBT on your aggregate non-exempt amount.
For the year ending 31 March 2018, the provision of salary packaged meal entertainment and entertainment facility leasing expense benefits form part of your aggregate non-exempt amount where the grossed-up taxable value of such benefits exceeds $5,000.
The following steps will assist you in calculating your aggregate non-exempt amount.
- Establish what the employee's individual fringe benefits amount would be if the capping concession was not available. The individual fringe benefits amount is the value of all benefits other than excluded benefits. For a list of excluded benefits, see chapter 5.2 of Fringe benefits tax – a guide for employers.
- Identify the amount of GST-creditable fringe benefits included in the amount for step 1. The result from this step is 'amount 1'.
- Identify those fringe benefits not taken into account in the calculation for step 2 (that is, the result for step 1 minus the result for step 2). The result from this step is 'amount 2'.
- 4 Determine the employee’s share of the benefits that would be excluded fringe benefits. For a list of excluded benefits, see chapter 5.2 of Fringe benefits tax – a guide for employers. The following excluded fringe benefits specifically not included in this calculation are:
- meal entertainment benefits not provided under a salary packaged arrangement
- car parking fringe benefits
- entertainment facility leasing expense benefits not provided under a salary packaged arrangement.
- Identify the GST-creditable fringe benefits included in step 4. The result from this step is 'amount 3'.
- Identify those excluded fringe benefits that are not taken into account under step 5 (that is, the result for step 4 minus the result for step 5). The result from this step is 'amount 4'.
- Add amount 1 and amount 3 (that is, the result from step 2 plus the result from step 5).
- Multiply the result from step 7 by 2.0802 (the type 1 gross-up rate). This is the individual grossed-up type 1 non-exempt amount. Do not write this amount at item 14A.
- Add amount 2 and amount 4 (that is, the result from step 3 plus the result from step 6). This is the type 2 individual base non-exempt amount. Do not write this amount at item 14B.
- Multiply the result from step 9 by 1.8868 (the type 2 grossed-up rate). This is the individual grossed-up type 2 non-exempt amount.
- For each employee add:
- the individual grossed-up type 1 non-exempt amount for the year ending 31 March 2018 (that is, the result from step 8)
- the individual grossed-up type 2 non-exempt amount for the year ending 31 March 2018 (that is, the result from step 10).
The result is the individual grossed-up non-exempt amount for the employee.
- Subtract $30,000 from the individual grossed-up non-exempt amount for each employee (that is, the result from step 11 minus the capping threshold for registered public benevolent institutions and health promotion charities). If the individual grossed-up non-exempt amount for an employee is equal to or less than $30,000, the amount calculated under this step is nil.
If you have not provided meal entertainment or entertainment facility leasing expense benefits under a salary packaging arrangement for the year ending 31 March 2018:
- Add together the amounts calculated at step 12 for each employee. This is your aggregate non-exempt amount.
- Multiply the total amount calculated under step 13 by 47% (the FBT rate). Write this amount at item 17.
If you have provided meal entertainment or entertainment facility leasing expense benefits under a salary packaging arrangement for the year ending 31 March 2018, continue with the steps in the below table.
- Determine how much of the employee’s individual fringe benefits amount relates to salary packaged meal entertainment and entertainment facility leasing expense benefits.
- Determine how much of the employee’s individual fringe benefits amount relates to GST creditable salary packaged meal entertainment and entertainment facility leasing expense benefits. Multiply the result by 2.0802 (the type 1 gross-up amount).
- Determine how much of the individual grossed-up non-exempt amount relates to non-GST creditable salary packaged meal entertainment and entertainment facility leasing expense benefits (that is, the result for step 13 minus the result for step 14). Multiple the result by 1.8868 (the type 2 gross-up amount).
- Add the amounts calculated at steps 14 and 15. This is the individual grossed-up salary packaged meal entertainment and entertainment facility leasing expense benefits.
- Subtract from the amount calculated at step 12 by the lesser of either:
- $5,000, and
- the amount calculated at step 16.
- Add together the amounts calculated at step 17 for each employee. Multiply the result by 47% (the FBT tax rate). Write this amount at item 17. This is your aggregate non-exempt amount.
Example 7: Aggregate non-exempt amount for a public benevolent institution
You are a public benevolent institution 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 expense benefits to Louise under a salary package 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 expense 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 = $4,160.40 ($2,000 × 2.0802).
Louise's grossed-up type 2 amount is:
- salary packaged entertainment facility leasing expense benefit = $9,434.00 ($5,000 × 1.8868).
As the separate cap for salary packaged meal entertainment and entertainment facility leasing expense benefits has been exceeded (the grossed-up salary packaged meal entertainment and entertainment facility leasing expense benefits is $9,434.00), 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:
- = $8,594.40 ($4,160.40 + $9,434.00 – $5,000), which is less than the cap of $30,000.
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 = $52,005.00 ($25,000 × 2.0802).
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:
- $52,005.00 – $30,000 = $22,005.00.
You would write your aggregate non-exempt amount at item 14C on your return as:
15 Fringe benefits taxable amount
Write the amount you wrote at item 14C even if the amount is nil.
You must complete this item because it forms the basis of self-assessing any FBT liability.
16 Amount of tax payable
Multiply the amount you wrote at item 15 by 47% (the FBT rate for the year ending 31 March 2018) and write the total at item 16 even if the amount is nil. This is the total FBT amount you are liable to pay.
You must complete this item because it forms the basis of self-assessing any FBT liability.
17 Aggregate non-rebatable amount
You must leave item 17 blank.
18 Amount of rebate
You must leave item 18 blank.
19 Sub-total
Write the amount you wrote at item 16 even if the amount is nil.
You must complete this item because it forms the basis of self-assessing any FBT liability.
20 to 25
Complete these items in the same way as a taxable employer would – see Taxable employers.
However, at item 23, you must include the taxable value of benefits provided (not the aggregate non-exempt amount) if you are any of the following:
- an eligible public benevolent institution
- an eligible health promotion charity
- public hospital
- non-profit hospital
- public ambulance service.
The information you include in the 'Taxable value of benefits' column is based on the total of the individual base non-exempt amounts for all employees calculated at steps 3 and 5 of item 14C in the table above.
The figures you place in the 'Taxable value of benefits' column must be the amounts before they are grossed-up and before the $30,000 capping amounts are deducted.
Illustration 3: Public benevolent institution FBT return 2018
These figures are from examples 5 and 7.
Public hospitals, non-profit hospitals and public ambulance services
Public hospitals, non-profit hospitals and public ambulance services (that are not charities) are not required to be endorsed by us to access the FBT exemption.
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 $17,000.
You only pay FBT on your aggregate non-exempt amount.
For the year ending 31 March 2018, the provision of salary packaged meal entertainment and entertainment facility leasing expense 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:
- Subtract $17,000 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 $17,000, 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 2018
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 expense 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 expense 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 = $4,160.40 ($2,000 × 2.0802)
Louise's grossed-up type 2 amount is:
salary packaged entertainment facility leasing expense benefit = $9,434.00 ($5,000 × 1.8868).
As the separate cap for salary packaged meal entertainment and entertainment facility leasing expense benefits has been exceeded (the grossed-up salary packaged benefit is $9,434.00), 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:
- = $8,594.40 ($4,160.40 + $9,434.00 – $5,000) which is less than the cap of $17,000.
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 = $52,005.00 ($25,000 × 2.0802)
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:
- $52,005.00 – $17,000 = $35,005.00.
Not-for-profit organisation operating partly as an eligible public benevolent institution employer
If part of your organisation is endorsed by us to access the FBT exemption and the rest of the organisation is a rebatable employer, you must lodge FBT returns as follows:
- If the total grossed-up value of certain benefits provided to the employees of the public benevolent institution employer are less than the $30,000 capping threshold, then you lodge your FBT return in the same way that a rebatable employer would.
- If the total grossed-up value of certain benefits provided to employees of the public benevolent institution employer exceeds the $30,000 capping threshold, you must pay tax on the aggregate non-exempt amount of the public benevolent institution employer. You effectively lodge your FBT return as both a rebatable employer and as a public benevolent institution employer, by following the below instructions.
See also:
14 Calculated fringe benefits taxable amounts
For the amounts that you will be treated as a:
- Rebatable employer: complete items 14A and 14B in the same way as a rebatable employer would – see Rebatable employers.
- Public benevolent institution employer: only complete item 14C in the same way as a public benevolent institution would – see Public benevolent institutions and health promotion charities.
15 Fringe benefits taxable amount
Write at item 15 the sum of the amounts at items 14A, 14B and 14C even if the amount is nil.
You must complete this item because it forms the basis of self-assessing any FBT liability.
16 Amount of tax payable
Multiply the amount you wrote at item 15 by 47% (the FBT rate for the year ending 31 March 2018) and write the total at item 16 even if the amount is nil. This is the total FBT amount you are liable to pay.
You must complete this item because it forms the basis of self-assessing any FBT liability.
17 Aggregate non-rebatable amount
Calculate the aggregate non-rebatable amount in the same way as a rebatable employer would – see Rebatable employers.
Write at item 17 the total of this amount and the tax payable on the aggregate non-exempt amount (item 14C × 47%).
18 Amount of rebate
Calculate item 18 in the same way as a rebatable employer would – see Rebatable employers.
19 Sub-total
Write at item 19 the amount at item 16 less the amount (if any) at item 18 even if the amount is nil.
You must complete this item because it forms the basis of self-assessing any FBT liability.
Example 8: Items 14 to 19 for not-for-profit organisation operating partly as an eligible public benevolent institution employer
You are a not-for-profit organisation, part of which is eligible for FBT exemption (as it is a public benevolent institution employer) and the rest of the organisation is a rebatable employer.
You have a fringe benefits taxable amount of $150,000 for the year ending on 31 March 2018 made up of:
- $105,000 type 1 benefits (type 1 aggregate amount of $50,476 × 2.0802)
- $33,000 type 2 benefits (type 2 aggregate amount of $17,490 × 1.8868)
- an aggregate non-exempt amount of $12,000.
You have two employees in the rebatable part of your organisation with individual grossed-up non-rebatable amounts greater than $30,000. One employee has an amount of $50,000, and the other has an amount of $45,000.
The calculation of the aggregate non-rebatable amount is as follows:
($50,000 – $30,000) + ($45,000 – $30,000) × 47%
= $16,450.00
Add to this amount the tax payable on the aggregate non-exempt amount ($12,000 × 47%)
= $5,640.00
$16,450.00 + $5,640.00
= $22,090.00.
The calculation of the amount of rebate is as follows:
- 0.47 × (amount of tax payable – aggregate non-rebatable amount)
The amount of tax payable is 47% of the fringe benefits taxable amount, which equates to gross tax of $70,500 (0.47 × $150,000).
The rebate calculation is:
- 0.47 × ($70,500.00 – $22,090.00)
= $22,752.70.
20 to 25
Complete these items in the same way as a taxable employer would – see Taxable employers.
If the fringe benefits you provide to the employees of the public benevolent institution employer exceed the $30,000 capping threshold, at item 23, the 'Taxable value of benefits' must be the amounts before they are grossed-up and before the $30,000 capping amounts are deducted (not the aggregate non-exempt amount).
The information you include in the 'Taxable value of benefits' column is based on the total of the individual base non-exempt amounts for all employees you calculated at steps 3 and 5 of item 14C.
The figures you place in the 'Taxable value of benefits' column must be the amounts before the $30,000 capping amounts are deducted.