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Worked examples – not-for-profit employers – completing your FBT return

Last updated 23 June 2020

The following worked example shows how to complete a:

Rebatable employer return

You provide the following benefits for the year ending 31 March 2020 to your employees:

  • you pay Mark, Sam and eight other employees' children’s school fees (an expense payment fringe benefit)
  • you provide Mark and Sam with cars for private use (a car fringe benefit)
  • you 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) is $14,000.

Sam's car fringe benefit calculated using the statutory formula method (GST taxable supply with an entitlement to a GST credit) is $15,000.

Total car fringe benefits = $29,000

Type 1 aggregate amount, which is shown at item 14A on the return is:

  • $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.

Multiply the expense payment fringe benefits by the number of employees receiving the payment.

  • $6,000 (expense payment fringe benefit × 10 (number of employees)) = $60,000.

Type 2 aggregate amount, which is shown at item 14B on the return, is:

  • $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 entitlement to a GST credit.

Mark's meal entertainment fringe benefit is $5,500 (that is, the amount Mark charged to the credit card for meals).

Sam's meal entertainment fringe benefit is $2,295.

Total meal entertainment fringe benefit = $7,795.

Type 2 aggregate amount is:

  • $7,795 × 1.8868 = $14,707.60.

The total 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:

  • 47% × [($50,821.00 − $30,000 − $5,000) + ($42,523.80 − $30,000)] = $13,322.05.

The calculation of the rebate amount is:

  • 47% × ($88,472.80 − $13,322.05) = $35,320.85.

Completing your FBT return

You would complete your FBT return as follows:

  • item 14A – $29,000 × 2.0802 = $60,325
  • item 14B – ($60,000 + $7,795) × 1.8868 = $67,795 × 1.8868 = $127,915
  • item 14C – is left blank
  • item 15 – items 14A + 14B = $60,325 + $127,915 = $188,240
  • item 16 – 47% × $188,240 = $88,472.80
  • item 17 – the aggregate non-rebatable amount = $13,322.05
  • item 18 – 47% of (item 16 − item 17) = 47% × ($88,472.80 − $13,322.05) = $35,320.85
  • item 19 – (item 16 amount − item 18 amount) = ($88,472.80 − $35,320.85) = $53,151.95
  • item 20 – $16,000
  • item 21 – $37,151.95
  • item 22 – is left blank
  • item 23 – as in the following table.
Item 23 example – details of fringe benefits provided for rebatable 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

2

29,000

0

–

29,000

Expense payments

E

–

60,000

0

0

60,000

Income tax exempt body – entertainment

L

–

7,795

–

–

7,795

Extract of Items 14 to 23 of 2020 FBT return: Item 14A Type 1 aggregate amount is $29,000 × 2.0802 = $60,325; Item 14B Type 2 aggregate amount is ($60,000 + $7,795) × 1.8868 = $67,795 × 1.8868 = $127,915; Item 14C is left blank; Item 15 Fringe benefits taxable amount ((A+B) or C) is $60,325 + $127,915 = $188,240; Item 16 Amount of tax payable (47% of item 15 amount) is 47% × $188,240 = $88,472.80; Item 17 Aggregate non-rebatable amount (only complete this item if you are a rebatable employer. Visit ato.gov.au/FBT2020 for more information) is $13,322.05; 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/FBT2020 for more information) is 47% × ($88,472.80 - $13,322.05) = $35,320.85; Item 19 Sub-total (item 16 amount less item 18 amount) is ($88,472.80 - $35,320.85) = $53,151.95; Item 20 Less instalment amounts reported on activity statements (Visit ato.gov.au/FBT2020 for more information) is $16,000; Item 21 Payment due is $37,151.95; Item 22 is left blank; Item 23 Details of fringe benefits provided is as follows: 23A Cars using the statutory formula, number is 2, gross taxable value is $29,000, employee contribution is $0 and taxable value of benefits is $29,000; 23E Expense payments, gross taxable value is $60,000, employee contribution is $0, value of reductions is $0 and taxable value of benefits is $60,000; 23L Income tax exempt body-entertainment, gross taxable value is $7,795 and taxable value of benefits is $7,795.

See other worked examples:

Public benevolent institution return

You are a public benevolent institution that is registered for GST. You provide your employees with the following fringe benefits:

  • car fringe benefits to Louise and Wendy valued at $2,000 and $25,000 respectively using the statutory formula method (type 1 benefits as you are entitled to GST 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 a GST 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 a GST 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.

Louise's aggregate exempt amount 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.

Completing your FBT return

You would complete your FBT return as follows:

  • item 14C – $22,005
  • item 15 – $22,005
  • item 16 – $22,005 × 0.47 = $10,342.35
  • items 17 and 18 – are left blank
  • item 18 is left blank
  • item 19 – $10,342.35
  • item 20 – $16,000
  • item 21 – is left blank
  • item 22 – $5,657.65
  • item 23 – as in the following table.
Item 23 example – details of fringe benefits provided for public benevolent institution employer return

Types 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

2

27,000

0

–

27,000

Income tax exempt body – entertainment

L

–

5,000

–

–

5,000

The entertainment not provided under a salary sacrifice arrangement does not have to be shown at item 23.

Extract of Items 14 to 23 of 2020 FBT return: Item 14C Aggregate non-exempt amount (hospitals, ambulances, public benevolent institutions and health promotion charities only) is $22,005; Item 15 Fringe benefits taxable amount ((A+B) or C) is $22,005; Item 16 Amount of tax payable (47% of item 15 amount) is $22,005 x 0.47 = $10,342.35; Item 17 Aggregate non-rebatable amount (Only complete this item if you are a rebatable employer. Visit ato.gov.au/FBT2020 for more information) is not completed. 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/FBT2020 for more information) is not completed. Item 19 Sub-total (item 16 amount less item 18 amount) is $10,342.35 – 0 = $10,342.35; Item 20 Less instalment amounts reported on activity statements (Visit ato.gov.au/FBT2020 for more information) is $16,000; Item 21 is left blank; Item 22 Credit due to you is $5,657.65; Item 23 Details of fringe benefits provided is as follows: 23A Cars using the statutory formula, number is 2, gross taxable value is $27,000, employee contribution is $0 and taxable value of benefits is $27,000; 23L Income tax exempt body-entertainment, gross taxable value is $5,000 and taxable value of benefits is $5,000.

See other worked examples:

Public hospital return

You are a public hospital that is registered for GST, pay instalments during the year totalling $16,000 and provide your employees with the following fringe benefits:

  • car fringe benefits to Louise and Wendy valued at $2,000 using the operating cost method and $25,000 using the statutory formula method respectively (type 1 benefits as you are entitled to GST 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 a GST 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 a GST 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.

Louise's aggregate exempt amount 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.

Completing your FBT return

You would complete your FBT return as follows:

  • item 14C – $35,005
  • item 15 – $35,005
  • item 16 – $35,005 × 0.47 = $16,452.35
  • items 17 and 18 – are left blank
  • item 19 – $16,452.35
  • item 20 – $16,000
  • item 21 – ($16,000 − $16,452.35) − $452.35
  • item 22 – is left blank
  • item 23 – as in the following table.
Item 23 example – details of fringe benefits provided for public hospital employer return

Type of benefit 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

25,000

0

–

25,000

Cars using the operating cost method

B

1

2,000

0

–

2,000

Income tax exempt body – entertainment

L

–

5,000

–

–

5,000

The entertainment not provided under a salary sacrifice arrangement does not have to be shown at item 23.

Extract of Items 14 to 23 of 2020 FBT return: Item 14C Aggregate non-exempt amount (hospitals, ambulances, public benevolent institutions and health promotion charities only) is $35,005; Item 15 Fringe benefits taxable amount ((A+B) or C) is $35,005; Item 16 Amount of tax payable (47% of item 15 amount) is $35,005 × 0.47 = $16,452.35; Item 17 Aggregate non-rebatable amount (only complete this item if you are a rebatable employer. Visit ato.gov.au/FBT2020 for more information) is not completed. 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/FBT2020 for more information) is not completed. Item 19 Sub-total (item 16 amount less item 18 amount) is $16,452.35 – 0 = $16,452.35; 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 $16,000 – $16,452.35 = $452.35; 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 $25,000, employee contribution is $0 and taxable value of benefits is $25,000; 23B Cars using the operating cost method, number is 1, gross taxable value is $2,000, employee contribution is $0 and taxable value of benefits is $2,000; 23L Income tax exempt body-entertainment, gross taxable value is $5,000 and taxable value of benefits is $5,000.

See other worked examples:

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

You are a not-for-profit organisation, part of which was endorsed by us on or before 2 December 2012 and registered with the ACNC on or after 3 December 2012 and is eligible for FBT exemption and the rest of the organisation is eligible for the FBT rebate. 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 2020 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 – $50,476 × 2.0802 = $105,000
  • item 14B – $17,490 × 1.8868 = $33,000
  • item 14C – $12,000
  • item 15 – ($105,000 + $33,000 + $12,000) = $150,000
  • item 16 – 47% of $150,000 = $70,500
  • item 17 – $22,090
  • item 18 – $22,752.70
  • item 19 – ($70,500 − $22,752.70) = $47,747.30
  • item 20 – $16,000
  • item 21 – ($47,747.30 − $16,000) = $31,747.30
  • item 22 – is left blank
  • item 23 – as in the following table.
Item 23 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 2020 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/FBT2020 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/FBT2020 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/FBT2020 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.

See other worked examples:

QC61882