Charitable institutions and most non-government organisations that are income tax exempt, qualify for an FBT rebate. As a rebatable employer, you are eligible for a rebate of 48% of the amount of FBT that would otherwise be payable.
The maximum grossed-up value of benefits that can be provided to an employee, without losing the concession, is $30,000. The $30,000 capping threshold applies even if you did not employ the employee for the full FBT year. For example, if the total grossed-up value of the benefits you provide to an employee between October and March is $15,000, a rebate applies to all of the FBT payable for providing these benefits.
If the total grossed-up value of the fringe benefits provided to an individual employee is more than $30,000, a rebate can't be claimed for the FBT liability on the excess amount.
Use the following formula to calculate the rebate available to you:
0.48
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X
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(gross tax - aggregate non-rebatable amount)
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X
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rebatable days in year
total days in year
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Gross tax is the FBT you would have paid if you had not been entitled to claim a rebate.
Rebatable days in the year are the number of days during the FBT year that you qualified as a rebatable employer.
For the purpose of calculating the rebate, the total days in the year means the number of days you were an employer. It does not refer to the total number of days in the year.
The aggregate non-rebatable amount is the proportion of the taxable value of fringe benefits for which you can't obtain a rebate.
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The PBI, HPC and rebatable employers calculator will help you calculate the FBT liability for PBIs, HPCs and rebatable employers. The $30,000 capping threshold only has been considered in the calculator.
You can also use the steps in tables 1 and 2 below to help you calculate the FBT payable.
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To calculate your FBT payable, you need to first calculate your gross tax (see table 1).
Sections within 6.6 Calculating the FBT rebate
Last Modified: Friday, 24 December 2010