Fringe benefits tax
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Legislative reference: section 57AExternal Link of the FBTAA.
A public benevolent institution (PBI) is distinct from a charitable institution. Generally, an organisation is recognised as a PBI if its principal objects are the relief of poverty, sickness, suffering, distress, misfortune, destitution or helplessness, and its activities are carried on without the purpose of private gain for particular people.
A health promotion charity (HPC) is a non-profit charitable institution whose principal activity is promoting the prevention or control of diseases in human beings.
An institution with charitable activities, but which doesn't have as its principal objects the provision of such relief, is not a PBI.
From 3 December 2012, all PBIs and HPCs have to be registered with the ACNC and endorsed by us in order to claim FBT concessions.
Benefits you provide to your employees are exempt from FBT where the total grossed-up taxable value of certain fringe benefits for each employee during the FBT year is $30,000 or less.
If your employees receive benefits above this threshold you are liable for FBT on the excess (or the aggregate non-exempt amount).
For more on registered and endorsed PBIs and registered and endorsed HPCs, refer to Non-profit organisations and fringe benefits tax.
Benefits exempted by this provision may be subject to fringe benefits reporting requirements as explained in Reportable fringe benefits.
Public and non-profit hospitals and public ambulance services are exempt from FBT if the grossed-up taxable value of certain fringe benefits provided to each employee is $17,000 or less.
If your employees receive benefits above this threshold, you are liable for FBT on the excess (or the aggregate non-exempt amount).
For more on public and non-profit hospitals and public ambulance services, refer to Non-profit organisations and fringe benefits tax.
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