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

Rebatable employer return – worked example

You provide the following benefits for the year ending 31 March 2024 to your employees:

• you pay Mark, Sam and 8 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.

Public benevolent institution return – worked example

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 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.

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

Public hospital return – worked example

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.

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

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

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. You are 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 2024 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 2 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.