Fringe benefits tax - Tax basics for non-profit organisations

FBT exemption

FBT exemption is an exemption from paying FBT.

If your organisation is eligible for FBT exemption, benefits it provides to its employees are exempt from FBT where the total grossed-up value of certain benefits for each employee during the FBT year is equal to, or less than, the capping threshold. If the total grossed-up value of fringe benefits provided to an employee is more than the capping threshold, the organisation will be liable for FBT on the excess.

The table below outlines the types of organisations that are eligible for FBT exemption, the capping thresholds that apply and whether the organisation needs to be endorsed by the Tax Office to access FBT exemption.

What types of organisations are eligible for FBT exemption? (see note 1)	What capping threshold applies? (see note 2)	Does the organisation need to be endorsed by the Tax Office to access FBT exemption? (see note 3)
Public benevolent institutions (other than hospitals). See Public benevolent institution.	$30,000 per employee	Yes
Health promotion charities See Health promotion charity.	$30,000 per employee	Yes
Public and non-profit hospitals	$17,000 per employee	No
Public ambulance services	$17,000 per employee	No

It is important to check the notes to the table, as your organisation may need to meet certain requirements before it can access a concession.

Notes to table

1. A range of benefits are exempt from FBT. They include certain benefits provided by religious institutions and non-profit companies. For more information, see Religious institutions and Non-profit companies and live-in residential carers.
2. If an organisation is a public benevolent institution (PBI) and a hospital, the $17,000 capping threshold applies. The organisation cannot choose the PBI exemption cap.
3. For more information see Endorsement requirements for charities and income tax exempt funds.

Last Modified: Monday, 15 October 2007