Show download pdf controls
  • Recent and proposed law changes

    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
    Attention

    Note: Since these instructions were initially published, law changes have passed through parliament which affect in-house fringe benefits, airline transport fringe benefits and not-for-profit entities. We have updated these instructions to take into account these law changes.

    End of attention

    Car fringe benefits – statutory formula method

    Changes to the statutory percentages applicable to car fringe benefits apply from 10 May 2011. Some details of this change are included in the section A - Cars using the statutory formula.

    Find out more

    For more information refer to Car fringe benefits.

    End of find out more

    Living-away-from-home benefits

    From 1 October 2012, the eligibility rules for the exempt accommodation component and exempt food component of a living-away-from-home allowance have changed. Similar changes apply to property, expense payment and residual benefits that relate to food and accommodation for an employee living away from home.

    Find out more

    For more information, refer to Living-away-from-home allowance fringe benefits.

    End of find out more

    In-house fringe benefits

    Under the FBT law, there are different types of benefit that may be provided by employers to employees (or their associates) where the employer is in the business of providing the same or similar goods and services to their customers. Such benefits are known as in-house benefits. The law allows for such in-house benefits to be concessionally taxed.

    Changes have been made to these concessions. Under these changes, the concessions no longer apply to in-house benefits provided under a salary packaging arrangement on or after 22 October 2012. However, transitional rules may apply to arrangements entered into before that date which defer the cessation of the concessions.

    Find out more

    For more information, refer to Reform of salary sacrificed 'in-house' fringe benefits.

    End of find out more

    Airline transport benefits

    Changes have been made to the FBT law relating to airline transport fringe benefits. Under these changes, there is no longer a separate category of fringe benefit for airline transport fringe benefits. Airline transport fringe benefits are now taxed under the in-house benefit provisions – as expense payment, property or residual fringe benefits – and the way the taxable value is calculated has been changed.

    The changes affect airline transport fringe benefits provided on or after 7.30pm AEST on 8 May 2012.

    Find out more

    For more information, refer to Reform of Airline transport fringe benefits.

    End of find out more

    Not-for-profit reforms

    Charities

    From 3 December 2012, the Australian Charities and Not-for-profits Commission (ACNC) is the new national regulator of charities.

    The ACNC is responsible for registering organisations as charities for all Commonwealth purposes and maintains a public register of charities. The ACNC determines whether an organisation is a particular sub-type of charity, including a public benevolent institution or health promotion charity.

    Registration with the ACNC is voluntary – however, charities must be registered with the ACNC if they want to be endorsed by the Australian Taxation Office (ATO) to access charity tax concessions. These include:

    • the FBT rebate for registered charities
    • the FBT exemption for registered public benevolent institutions or registered health promotion charities.

    Charities were automatically registered with the ACNC from 3 December 2012 if they were endorsed by us before that date as:

    • income tax exempt
    • FBT exempt as a public benevolent institution or a health promotion charity
    • a deductible gift recipient because they are a public benevolent institution or health promotion charity.

    Charities that were not endorsed by us as income tax exempt charities on or after 3 December 2012 must register with the ACNC before they can be endorsed by us to access charity tax concessions – this includes the FBT rebate for registered charities, and the FBT exemption for registered public benevolent institutions or registered health promotion charities.

    FBT rebate

    Changes to the FBT law as a result of the introduction of the ACNC has meant that charitable institutions that are institutions of the Commonwealth, a state or a territory and some charitable funds may be eligible for the FBT rebate for the period 3 December 2012 to 31 March 2013. Transitional provisions mean that such institutions may also be eligible for the FBT rebate for the period 1 April 2013 to 31 March 2014.

    Entitlement to the rebate

    If.. Then..

    Your charity is not registered with the ACNC

    It is not entitled to the FBT rebate

    Your charity is a registered public benevolent institution or health promotion charity

    It is not entitled to the FBT rebate

    Your registered charity is not endorsed to access the FBT rebate tax concession and is an institution.

    It is not entitled to the FBT rebate.

    Your registered charity is not endorsed to access the FBT rebate tax concession and is not an institution.

    It is entitled to the FBT rebate from the 3 December 2012 to 31 March 2013.

    Your registered charity is endorsed to access the FBT rebate tax concession, commencing from a date of endorsement which is before 30 June 2013.

    It is entitled to the FBT rebate for the periods:

    • From 3 December 2012 (or date of endorsement, whichever is the later) to 31 March 2013, and
    • From 1 April 2013 (or date of endorsement, whichever is the later) to 31 March 2014, and
    • From 1 April 2014 unless the Commissioner revokes the notice of endorsement.

     

    Your registered charity is endorsed to access the FBT rebate tax concession commencing from a date of endorsement which is on or after 30 June 2013

    It is entitled to the FBT rebate from the commencement date of the endorsement, provided all of the conditions are met.

     

    Conditions

    For endorsement from 30 June 2013 onwards, your charity must meet all of the following conditions to be entitled to the FBT rebate:

    • a registered charity
    • endorsed for the income tax exemption
    • an institution
    • not a registered public benevolent institution
    • not a registered health promotion charity
    • not an institution of the Commonwealth, a state or territory
    • endorsed for the FBT rebate.

    Example: A university is a charitable institution that has been endorsed as income tax exempt since 2008. On 3 December 2012, the university is deemed to be registered with the ACNC.

    The university is an institution of the Commonwealth, a state or territory. On 5 January 2013, the university applied for endorsement for the FBT rebate, requesting that it be effective from 3 December 2012, and it was granted endorsement effective from that date.

    The university:

    • is a charity that is registered with the ACNC
    • is not a public benevolent institution or health promotion charity
    • is a registered charity that was endorsed to access the FBT rebate before 30 June 2013.

    As a result, the university is eligible for the FBT rebate for the period:

    • 3 December 2012 – 31 March 2013
    • 1 April 2013 – 31 March 2014.

    The university is not eligible for the FBT rebate from 1 April 2014 because it is an institution of the Commonwealth, a state or territory. The Commissioner revokes the entity's endorsement from that date.

    End of example

    Religious institutions

    From 3 December 2012, religious institutions, including those that previously self-assessed their income tax exemption, must be registered with the ACNC as a charity (with a purpose that is the advancement of religion) to access relevant FBT concessions.

    FBT rebate

    Religious institutions are eligible for the FBT rebate – subject to a capping threshold of $30,000. The institution mustbe registered with the ACNC as a charity and endorsed by us to access the FBT rebate.

    FBT exemption

    Religious institutions may also be eligible for an FBT exemption for benefits they provide to:

    • religious practitioners
    • live-in carers
    • domestic employees.

    The religious institution does not need to be endorsed by us to access this FBT exemption, but it must be registered with the ACNC.

    Non-profit companies

    Non-profit companies that are charities must be registered with the ACNC as a charity from 3 December 2012 to access the exemption for FBT exempt benefits provided to live-in carers.

    Find out more

    For more information, refer to Not-for-profit reforms.

    End of find out more
    Last modified: 23 Oct 2013QC 27133