Rebatable employers are certain non-government, non-profit organisations.
Those that qualify for an FBT rebate include:
- certain religious, educational, charitable, scientific or public educational institutions
- trade unions and employer associations
- non-profit organisations established to encourage music, art, literature or science
- non-profit organisations established to encourage or promote a game, sport or animal races
- non-profit organisations established for community service purposes
- non-profit organisations established to promote the development of aviation or tourism
- non-profit organisations established to promote the development of Australian information and communications technology resources
- non-profit organisations established to promote the development of Australia’s agricultural, pastoral, horticultural, viticultural, aquacultural, fishing, manufacturing or industrial resources.
From 3 December 2012, charities must be registered with the ACNC and endorsed by us to access this concession – this would affect religious and charitable institutions.
Charities that were endorsed by us as income tax exempt charities immediately before 3 December 2012 are automatically registered with the ACNC – they don't need to re-register.
Charities that were not endorsed by us as income tax exempt charities before 3 December 2012 must register as a charity with the ACNC and then be endorsed by us to access charity tax concessions, including the FBT rebate for registered charities.
End of attentionFind out more
For more about ACNC registration, phone the ACNC on 13 ACNC (13 22 62) or visit the ACNC website.
For more about eligibility for this concession, including endorsement, phone us on 1300 130 248.
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Complete these items in the same way as a taxable employer would – refer to the section Taxable employers.
14 Calculated fringe benefits taxable amounts
Complete items 14A and 14B in the same way as a taxable employer would – refer to the section Taxable employers.
Item 14C does not apply to rebatable employers.
A rebatable employer must leave item 14C blank.
Example: Calculated fringe benefits taxable amounts for a rebatable employer
A rebatable employer provides fringe benefits to 10 of their employees. The employer:
- pays all 10 employees’ children’s school fees as an expense payment
- provides two of the employees with cars for private use.
The car fringe benefits are type 1 benefits because they are GST taxable supplies with an entitlement to a GST credit.
Car fringe benefit calculated using the statutory formula method (GST taxable supply with an entitlement to a GST credit) |
$14,000 |
Car fringe benefit calculated using the statutory formula method (GST taxable supply with an entitlement to a GST credit) |
$15,000 |
Type 1 aggregate amount |
$29,000 |
= $29,000 × 2.0647 |
|
The school fees are type 2 benefits because they are GST-free supplies with no GST credit entitlement.
10 x expense payment fringe benefits: school fees (GST-free supplies with no GST credit entitlement) |
10 x $6,000 |
Type 2 aggregate amount |
$60,000 |
= $60,000 × 1.8692 |
|
You would show the figures from this example at item 14 as:
15 to 16
Complete these items in the same way as a taxable employer would – refer to the section Taxable employers.
17 Aggregate non-rebatable amount
This item only applies if you are a rebatable employer.
If you are a rebatable employer, the total grossed-up value of benefits you can provide to each employee, without losing the existing concessions, is $30,000.
If the total gross value of the fringe benefits you provided to an individual employee exceeds $30,000, you cannot claim a rebate for the FBT liability on the excess amount. This is called the ‘aggregate non-rebatable amount’ and you must show it at item 17. Calculate this amount using the following steps.
18 Amount of rebate
Show at item 18 the amount of rebate you are entitled to. If you complete item 18, you must also complete item 17, even if the amount is nil.
Use the following formula to calculate the rebate amount:
0.48 |
x |
(gross tax – aggregate |
x |
rebatable days in year |
Gross tax is the amount at item 16 – that is, the total amount of tax calculated on the fringe benefits taxable amount.
The aggregate non-rebatable amount is the part of the taxable value of fringe benefits you cannot obtain a rebate for, calculated at item 17.
Rebatable days in the year means the number of days during the FBT year that you qualified as a rebatable employer.
The total days in the year means the number of days you were an employer.
Example: Calculate the amount of rebate
Using the example from item 14, the rebatable employer has:
- a fringe benefits taxable amount of $172,028 - ($59,876 + $112,152)
- gross tax of $79,993.02 - ($172,028 x 46.5%).
The employer was rebatable for the whole FBT year.
The two employees provided with cars as well as expense payment fringe benefits have an individual grossed-up non-rebatable amount greater than $30,000. One employee has an amount of $40,121.00, and the other has an amount of $42,185.70.
The calculation of the aggregate non-rebatable amount is as follows:
([$40,121.00 – $30,000] + [$42,185.70 – $30,000]) x 46.5%
= $10,372.62
The calculation of the rebate amount is as follows:
0.48 x ($79,993.02 – $10,372.62)
= $33,417.79
19 Sub-total
Show at item 19 the amount at item 16 minus the amount (if any) at item 18.
You would show the figures on the return at items 15 to 19 as:
20 to 25
Complete these items in the same way as a taxable employer would – refer to the section Taxable employers.
Example: A completed return for a rebatable employer
This is an example of the return calculation details of a completed 2013 FBT return. The figures used are from previous examples. You must show the exact amount of cents on the return – however, you may round down your payment to the nearest multiple of five cents.