• Rebatable employers

    Rebatable employers are certain non-government, non-profit organisations.

    Those that qualify for an FBT rebate include:

    • registered charities who are an institution; who are not established under a government law and who are endorsed as a charitable institution for these purposes
    • certain religious, educational, 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.
    Attention

    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.

    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 have been eligible for the FBT rebate for the period 3 December 2012 to 31 March 2013. Transitional provisions mean that such institutions may have also been eligible for the FBT rebate for the period 1 April 2013 to 31 March 2014. These employers are not eligible for the FBT rebate from 1 April 2014.

    End of attention

    Find out more

    • ACNC registration – phone the ACNC on 13 ACNC (13 22 62) or visit the ACNC websiteExternal Link.
    • Eligibility for this concession, including endorsement, phone us on 1300 130 248
    End of find out more

    1 to 13

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

    14 Calculated fringe benefits taxable amounts

    Complete items 14A and 14B in the same way as a taxable employer would – see Taxable employers.

    Attention

    Item 14C does not apply to rebatable employers.

    End of attention

    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 × 2.0802

     

    = $60,325.80

     

    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 × 1.8868

     

    = $113,208.00

     

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

     

    End of example

    15 to 16

    Complete these items in the same way as a taxable employer would – see 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.

    Step

    Action

    1

    For each employee, work out the employee’s individual fringe benefits amount. From that amount, identify those fringe benefits that are GST-creditable benefits. GST-creditable benefits are benefits you, or a member of your GST group, were entitled to a GST credit on.

    2

    Work out the employee’s share of the taxable value of excluded fringe benefits. For an outline of those excluded fringe benefits, refer to Reportable fringe benefits.

    The following excluded fringe benefits are not included in the notional taxable value of benefits you provided to the employee:

    • those benefits considered to be providing meal entertainment
    • car parking fringe benefits
    • entertainment facility leasing expenses.

     

    3

    Identify those excluded fringe benefits that are GST-creditable benefits – that is, where the provider was entitled to a GST credit on their acquisition. Add this amount to step 1.

    This is the type 1 individual base non-rebatable amount.

    4

    Gross up the type 1 individual base non-rebatable amount by multiplying it by 2.0802.

    5

    Identify those fringe benefits and excluded fringe benefits that are not GST-creditable benefits – that is, where you or a member of your GST group were not entitled to a GST credit on your acquisition.

    This is the type 2 individual base non-rebatable amount.

    6

    Gross up the type 2 individual base non-rebatable amount by multiplying it by 1.8868.

    7

    Add the grossed-up type 1 individual base non-rebatable amount and the grossed-up type 2 individual base non-rebatable amount. The result is the individual grossed-up non-rebatable amount.

    8

    Subtract $30,000 from the individual grossed-up non-rebatable amount for each employee. If the individual grossed-up non-rebatable amount for an employee is equal to or less than $30,000, the amount calculated under this step is nil.

    9

    Add together all the amounts calculated above for each employee.

    10

    Multiply the total amount calculated under step 9 by the FBT rate of 47%. The result is your aggregate non-rebatable amount for the FBT year. If your aggregate non-rebatable amount is nil, place zero at item 17.

    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
    non-rebatable amount)

    x

    rebatable days in year
    _______________________
    total 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 $173,533.80  ($60,325.80 + $113,208)
    • gross tax of $81,560.51  ($173,533x 47%).

    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 $40,443.60, and the other has an amount of $42,523.80.

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

    ([$40,443.60 – $30,000] + [$42,523.80 – $30,000]) x 47%

    = $10,794.68

    The calculation of the rebate amount is as follows:

    0.48 x ($81,560.51 – $10,794.68)

    = $33,967.60

    End of example

    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 – see Taxable employers.

    Example: A completed return for a rebatable employer

    This is an example of the return calculation details of a completed 2015 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.

    End of example
    Last modified: 27 Mar 2015QC 44652