• Public hospitals, non-profit hospitals and public ambulance services

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    The capping threshold for public hospitals, non-profit hospitals and public ambulance services is different to that for public benevolent institutions or health promotion charities.

    1 to 13

    Complete these items in the same way as a taxable employer would – refer to the section Taxable employers.

    14 Calculated fringe benefits taxable amounts

    You must complete only item 14C and not items 14A and 14B if you are a:

    • public hospital
    • non-profit hospital
    • public ambulance service.

    Aggregate non-exempt amount (hospitals, ambulances, public benevolent institutions and health promotion charities only)

    Public and non-profit hospitals have a capping threshold placed on the amount of FBT exempt fringe benefits that may be provided to employees. The concessional FBT treatment to these hospitals is capped at $17,000 of the grossed-up taxable value of fringe benefits provided to each employee. Public ambulance services also qualify for this concession.

    Where employees have been provided with benefits above the $17,000 threshold, the employer will be subject to FBT on its aggregate non-exempt amount. This amount is calculated using the same steps as a public benevolent institution or a health promotion charity (refer to the section Public benevolent institutions and health promotion charities) other than at step 8 of the calculation, which should be as follows:

    Step Action

    8

    Subtract $17,000 from the individual grossed-up non-exempt amount for each employee. If the individual grossed-up non-exempt amount is less than or equal to $17,000, the amount calculated under this step is nil.

     

    Example: Calculate the aggregate non-exempt amount – hospital

    A hospital has two employees with an individual grossed-up non-exempt amount greater than $17,000. One employee has an amount of $50,000, and the other has an amount of $40,000.

    The calculation of the aggregate non-exempt amount is as follows:

    ($50,000 - $17,000) + ($40,000 - $17,000) = $56,000

    You would show the figures from this example at item 14 as:

    Example of figures at item 14

    End of example

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    Complete these items in the same way as a public benevolent institution and health promotion charity would – refer to the section Public benevolent institutions and health promotion charities.

    Last modified: 23 Oct 2013QC 27133