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; not established under a government law and are endorsed by us as a tax concession charity
- certain scientific or public educational institutions
- certain trade unions and employer associations located in Australia 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.
Charities must be registered with the Australian Charities and Not-for-profits Commission (ACNC) and endorsed by us to access this concession.
Charities endorsed by us as income tax exempt charities before 3 December 2012 were automatically registered with the ACNC – they don't need to re-register.
See also:
- Not-for-profit concessions
- How to lodge your FBT return for information about when you do and don't need to lodge an FBT return
Items on the return to complete
Rebatable employers complete the following items on the return:
- Items
- 1 to 13
- 14A and 14B
- 15 to 25.
1 to 13
All employers complete items 1 to 13 the same way – see Business details – items 1 to 13.
14 to 16
Complete these items in the same way as a taxable employer would – see 2020 FBT return calculation details – taxable employers.
Rebatable employers do not complete item 14C.
17 Aggregate non-rebatable amount
Write 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 exceeding $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 not exceeding $30,000.
The FBT rebate can't be applied to your aggregate non-rebatable amount. The provision of salary packaged meal entertainment and entertainment facility leasing expense benefits form part of your aggregate non-rebatable amount if the grossed-up taxable value of such benefits exceeds $5,000.
The following steps will help you calculate your aggregate non-rebatable amount for the year ending 31 March 2020.
Meal entertainment or entertainment facility leasing expense benefits – not provided under a salary packaging arrangement
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 2020, complete steps 1–14. Do not complete steps 15–20.
Meal entertainment or entertainment facility leasing expense benefits provided under a salary packaging arrangement
If you have provided meal entertainment or entertainment facility leasing expense benefits under a salary packaging arrangement for the year ending on 31 March 2020, complete steps 1–12. If you are under the $30,000 cap for that employee, go straight to step 20. If you are over the $30,000 cap, complete steps 15–20. Do not complete steps 13 and 14.
Step |
Action |
|---|---|
1 |
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. |
2 |
Identify the amount of GST-creditable (or type 1) fringe benefits included in the amount for step 1. The result from this step is 'amount 1'. |
3 |
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. The following excluded fringe benefits are specifically not included in this calculation:
|
5 |
Identify the GST-creditable (or type 1) fringe benefits included in step 4. The result from this step is 'amount 3'. |
6 |
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'. |
7 |
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. |
8 |
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. |
9 |
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. |
10 |
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. |
11 |
For each employee add:
The result is the individual grossed-up non-rebatable amount for the employee. |
12 |
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. |
13 |
Add together the amounts calculated at step 12 for each employee. This is your aggregate non-rebatable amount. |
14 |
Multiply the total amount calculated under step 13 by 47% (the FBT rate). Write this amount at item 17. |
15 |
Determine how much of the employee’s individual fringe benefits amount relates to salary packaged meal entertainment and entertainment facility leasing expense benefits. |
16 |
Determine how much of the employee’s individual fringe benefits amount relates to GST creditable (or type 1) salary packaged meal entertainment and entertainment facility leasing expense benefits. Multiply the result by 2.0802 (the type 1 gross-up amount). |
17 |
Determine how much of the individual fringe benefits amount relates to non-GST creditable (or type 2) salary packaged meal entertainment and entertainment facility leasing expense benefits (that is, the result for step 15 minus the result for step 16). Multiply the result by 1.8868 (the type 2 gross-up amount). |
18 |
Add the amounts calculated at steps 16 and 17. This is the individual grossed-up salary packaged meal entertainment and entertainment facility leasing expense benefits. |
19 |
Subtract from the amount calculated at step 12 the lesser of either:
|
20 |
Add together the amounts calculated at step 19 for each employee. Multiply the result by 47% (the FBT rate). Write this amount at item 17. This is your aggregate non-rebatable amount. If you did not need to complete step 19 for any of your employees, the amount is $0. |
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 can't 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 2020 that you qualified as a rebatable employer.
The total days in the year means the number of days you were an employer.
At item 18, write 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 as 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 2020 FBT return calculation details – taxable employers (20 to 25).
See also:
- Rebatable employer return – example
Next steps:
- Correcting a mistake on your FBT return
- Worked examples – not-for-profit employers – completing your FBT return
Public benevolent institutions and health promotion charities
A public benevolent institution (PBI) is a charity whose main purpose is to relieve poverty, sickness, suffering or disability.
A health promotion charity (HPC) is a charity 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. A condition of our endorsement is that PBIs and HPCs must be registered with the Australian Charities and Not-for-profits Commission (ACNC) as a public benevolent institution or health promotion charity.
Organisations endorsed by us to access the FBT exemption for PBIs or HPCs immediately before 3 December 2012 were automatically registered with the ACNC – they don't need to re-register.
See also:
- Not-for-profit concessions or phone us on 1300 130 248 – for more about eligibility for this concession, including endorsement and registering.
- How to lodge your FBT return for information about when you do and don't need to lodge an FBT return.
Items on the return to complete
Eligible PBIs or HPCs complete the following items on the return:
- Items
- 1 to 13
- 14C
- 15 and 16
- 19 to 25.
1 to 13
All employers complete items 1 to 13 the same way – see Business details – items 1 to 13.
14 Calculated fringe benefits taxable amounts
Complete item 14C only.
Eligible PBIs or HPCs do not complete items 14A and 14B.
14C Aggregate non-exempt amount
Write 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 exceeding $30,000. You only pay FBT on your aggregate non-exempt amount.
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 help you calculate your aggregate non-exempt amount.
Meal entertainment or entertainment facility leasing expense benefits – not under a salary packaging arrangement
If you have not provided meal entertainment or entertainment facility leasing expense benefits under a salary packaging arrangement for the year ending 31 March 2020, complete steps 1–14. Do not complete steps 15–20.
Meal entertainment or entertainment facility expense benefits - under a salary packaging arrangement
Alternatively, if you have provided meal entertainment or entertainment facility leasing expense benefits under a salary packaging arrangement for the year ending 31 March 2020, complete steps 1–12. If you are under the $30,000 cap for that employee, go straight to step 20. If you are over the $30,000 cap for that employee, complete steps 15–20. Do not complete steps 13 and 14.
Step |
Action |
|---|---|
1 |
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. |
2 |
Identify the amount of GST-creditable (or type 1) fringe benefits included in the amount for step 1. The result from this step is 'amount 1'. |
3 |
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. The following excluded fringe benefits are specifically not included in this calculation:
|
5 |
Identify the GST-creditable (or type 1) fringe benefits included in step 4. The result from this step is 'amount 3'. |
6 |
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'. |
7 |
Add amount 1 and amount 3 (that is, the result from step 2 plus the result from step 5). |
8 |
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. |
9 |
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. |
10 |
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. |
11 |
For each employee add:
The result is the individual grossed-up non-exempt amount for the employee. |
12 |
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. |
13 |
Add together the amounts calculated at step 12 for each employee. This is your aggregate non-exempt amount. |
14 |
Write the amount calculated at step 13 (your aggregate non-exempt amount) at item 14C. |
15 |
Determine how much of the employee’s individual fringe benefits amount relates to salary packaged meal entertainment and entertainment facility leasing expense benefits. |
16 |
Determine how much of the employee’s individual fringe benefits amount relates to GST-creditable (or type 1) salary packaged meal entertainment and entertainment facility leasing expense benefits. Multiply the result by 2.0802 (the type 1 gross-up amount). |
17 |
Determine how much of the individual grossed-up non-exempt amount relates to non-GST creditable (or type 2) salary packaged meal entertainment and entertainment facility leasing expense benefits (that is, the result for step 15 minus the result for step 16). Multiply the result by 1.8868 (the type 2 gross-up amount). |
18 |
Add the amounts calculated at steps 16 and 17. This is the individual grossed-up salary packaged meal entertainment and entertainment facility leasing expense benefits. |
19 |
Subtract from the amount calculated at step 12 by the lesser of either:
|
20 |
Add together the amounts calculated at step 19 for each employee. Write this amount at item 14C. This is your aggregate non-exempt amount. If you did not need to complete step 19 for any of your employees, the amount is $0. |
15 Fringe benefits taxable amount
Write the amount you wrote at item 14C even if the amount is nil.
You must complete this item as 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 2020) 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 as 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 as 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 2020 FBT return calculation details – taxable employers (20 to 25).
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
- not-for-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 (not just the employees for whom the exemption cap was exceeded) calculated at steps 3 and 5 of item 14C 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.
See also:
- Public benevolent institution return – example
Next steps:
- Correcting a mistake on your FBT return
- Worked examples – not-for-profit employers – completing your FBT return
Public hospitals, not-for-profit hospitals and public ambulance services
Public hospitals, not-for-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 FBT exemption.
The capping threshold for public hospitals, not-for-profit hospitals and public ambulance services is different to that for eligible public benevolent institutions or health promotion charities.
See also:
- How to lodge your FBT return for information about when you do and don't need to lodge an FBT return
Items on the return to complete
Public hospitals, not-for-profit hospitals and public ambulance service employers complete the following items on the FBT return:
- Items
- 1 to 13
- 14C
- 15 and 16
- 19 to 25.
1 to 13
All employers complete items 1 to 13 the same way – see Business details – items 1 to 13.
14 Calculated fringe benefits taxable amounts
Complete item 14C only.
Public hospitals, not-for-profit hospitals and public ambulance service employers do not complete items 14A and 14B.
14C Aggregate non-exempt amount
At item 14C write 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.
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.
See also:
- Public hospital return – example
Next steps:
- Correcting a mistake on your FBT return
- Worked examples – not-for-profit employers – completing your FBT return
Not-for-profit organisation operating partly as an eligible public benevolent institution
If part of your organisation is endorsed by us as a registered public benevolent institution (PBI) to access the FBT exemption (PBI employer) and the rest of the organisation is endorsed by us as a registered charity to access the FBT rebate (rebatable employer), you must lodge FBT returns as follows:
- If the total grossed-up value of certain benefits provided to the employees of the PBI 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 PBI employer, by following the below instructions.
Such an organisation must have been endorsed by us on or before 2 December 2012, and have a separate registration with the ACNC on or after 3 December 2012, for the public benevolent institution they operate to apply this approach to the return.
See also:
- Not-for-profit
- How to lodge your FBT return for information about when you do and don't need to lodge an FBT return
Items on the return to complete
A not-for-profit organisation operating partly as an eligible PBI employer completes the following items on the FBT return:
- Items
- 1 to 13
- 14A and 14B (amounts that you will be treated as a rebatable employer for)
- 14C (amounts that you will be treated as a PBI for)
- 15 and 16
- 17 and 18 (amounts that you will be treated as a rebatable employer for)
- 19 to 25.
1 to 13
All employers complete items 1 to 13 the same way – see Business details – items 1 to 13.
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 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
At item 15, write the sum of the amounts at items 14A, 14B and 14C even if the amount is nil.
You must complete this item as 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 2020) 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 as 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 – see Rebatable employers.
At item 17, write 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 a rebatable employer would – see Rebatable employers.
19 Sub-total
At item 19, write the amount at item 16 less the amount (if any) at item 18 even if the amount is nil.
You must complete this item as it forms the basis of self-assessing any FBT liability.
20 to 25
Complete these items the same way a taxable employer would – see 2020 FBT return calculation details – 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 (not just the employees for whom the exemption cap was exceeded) 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.
See also:
Next steps: