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  • 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 is completed as $35,005
    • Item 15 is completed as $35,005
    • Item 16 is completed as $35,005 × 0.47 = $16,452.35
    • Items 17 and 18 are left blank
    • Item 19 is completed as $16,452.35
    • Item 20 is completed as $16,000
    • Item 21 is completed as ($16,000 − $16,452.35) − $452.35
    • Item 22 is left blank
    • Item 23 is completed as follows:
    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 2019 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/FBT2019 for more information) is $0
• 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/FBT2019 for more information) is $0
• 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.

    The other worked examples are:

     

    Last modified: 26 Mar 2019QC 58352