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Not-for-profit organisation operating partly as an eligible public benevolent institution

Last updated 25 March 2019

You are a not-for-profit organisation, part of which is eligible for FBT exemption (as you are a public benevolent institution (PBI) employer) and the rest of the organisation is a rebatable employer. You paid instalments of $16,000 during the FBT year.

You have a fringe benefits taxable amount of $150,000 for the year ending on 31 March 2019 made up of:

  • $105,000 type 1 car fringe benefits valued using the statutory formula method (type 1 aggregate amount of $50,476 × 2.0802)
  • $33,000 type 2 expense payment benefits (type 2 aggregate amount of $17,490 × 1.8868)
  • an aggregate non-exempt amount of $12,000, which is for residual benefits for a third employee who is employed in the eligible public benevolent institution part of the organisation. The employee received a total of $42,000 in residual benefits during the year.

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. 

Completing your FBT return

You would complete your FBT return as follows:

  • Item 14A is completed as $50,476 × 2.0802 = $105,000
  • Item 14B is completed as $17,490 × 1.8868 = $33,000
  • Item 14C is completed as $12,000
  • Item 15 is completed as ($105,000 + $33,000 + $12,000) = $150,000
  • Item 16 is completed as 47% of $150,000 = $70,500
  • Item 17 is completed as $22,090
  • Item 18 is completed as $22,752.70
  • Item 19 is completed as ($70,500 − $22,752.70) = $47,747.30
  • Item 20 is completed as $16,000
  • Item 21 is completed as ($47,747.30 − $16,000) = $31,747.30
  • Item 22 is left blank
  • Item 23 is completed as:
Example details of fringe benefits provided for Not-for-profit organisation operating partly as an eligible Public Benevolent Institution employer return

Type of benefits provided

Code

Number

Gross taxable value (a)

Employee contribution (b)

Value of reductions (c)

Taxable value of benefits (a) − (b) − (c)

Cars using the statutory formula

A

1

50,476

0

 

50,476

Expense payments

E

 

17,490

0

0

17,490

Other benefits (residual)

M

 

42,000

0

0

42,000

Extract of Items 14 to 23 of 2019 FBT return: • Item 14A Type 1 aggregate amount is $50,476 × 2.0802 = $105,000 • Item 14B Type 2 aggregate amount is $17,490 × 1.8868 = $33,000 • Item 14C Aggregate non-exempt amount (hospitals, ambulances, public benevolent institutions and health promotion charities only) is $12,000 • Item 15 Fringe benefits taxable amount ((A+B) or C) is ($105,000 + $33,000 + $12,000) = $150,000 • Item 16 Amount of tax payable (47% of item 15 amount) is 47% of $150,000 = $70,500 • Item 17 Aggregate non-rebatable amount (only complete this item if you are a rebatable employer. Visit ato.gov.au/FBT2019 for more information) is $22,090 • Item 18 Amount of rebate (47% of (item 16 amount less item 17 amount) (only complete this item if you are a rebatable employer. Visit ato.gov.au/FBT2019 for more information) is 47% of ($70,500 – $22,090) = $22,752.70 • Item 19 Sub-total (item 16 amount less item 18 amount) is $70,500 – $22,752.70 = $47,747.30 • Item 20 Less instalment amounts reported on activity statements (Visit ato.gov.au/FBT2019 for more information) is $16,000 • Item 21 Payment due is ($47,747.30 – $16,000) = $31,747.30 • Item 22 is left blank • Item 23 Details of fringe benefits provided is as follows: • 23A Cars using the statutory formula, number is 1, gross taxable value is $50,476, employee contribution is $0 and taxable value of benefits is $50,476 • 23E Expense payments, gross taxable value is $17,490, employee contribution is $0, value of reductions is $0 and taxable value of benefits is $17,490 • 23M Other benefits (residual), gross taxable value is $42,000, employee contribution is $0, value of reductions is $0 and taxable value of benefits is $42,000.

The other worked examples are:

QC58352