• Public benevolent institutions and health promotion charities

    A public benevolent institution is a non-profit institution that:

    • is established and carried on for the relief of poverty, sickness, suffering, distress, misfortune, destitution or helplessness
    • makes its services available, without discrimination, to every member of the public the organisation aims to benefit
    • is administered for the public good without purpose of private gain
    • provides direct relief for the benefit of a disadvantaged section of the public – for example, provides shelter for homeless people.

    A health promotion charity is a non-profit charitable institution whose principal activity is to promote the prevention or control of diseases in human beings.

    If your organisation is a public benevolent institution or health promotion charity, the organisation must be endorsed by us to access the FBT exemption. From 3 December 2012, your organisation must also be registered with the ACNC as a charity.

    Organisations that were endorsed by us to access the FBT exemption for public benevolent institutions or health promotion charities immediately before 3 December 2012 are automatically registered with the ACNC – they don't need to re-register.

    Attention

    For more about eligibility for this concession, including endorsement, phone us on 1300 130 248.

    End of attention

    1 to 13

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

    14 Calculated fringe benefits taxable amounts

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

    • public benevolent institution
    • health promotion charity.

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

    Eligible public benevolent institutions and health promotion charities have a capping threshold placed on the amount of FBT exempt benefits they may provide to employees. The concessional FBT treatment to these organisations is capped at $30,000 of the grossed-up taxable value of fringe benefits provided to each employee.

    Where there are employees who have been provided with fringe benefits above the $30,000 grossed-up taxable value threshold, the employer will be subject to FBT on its aggregate non-exempt amount. Calculate this amount using the following nine steps:

    Step

    Action

    1

    For each employee, establish the amount that would be their individual fringe benefits amount if the exemption was not available. From that amount, identify those fringe benefits that are GST-creditable benefits – that is, where the provider or a member of the same GST group was entitled to a GST credit.

    2

    Work out the employee’s share of the taxable value of benefits that would qualify as excluded fringe benefits if the exemption was not available. 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 the provision of 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 or a member of the same GST group was entitled to a GST credit on their acquisition. Add this amount to step 1.

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

    4

    Gross up the type 1 individual base non-exempt 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 the provider or a member of the same GST group was not entitled to a GST credit on their acquisition.

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

    6

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

    7

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

    8

    Subtract $30,000 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 $30,000, the amount calculated under this step is nil.

    9

    Add together all the amounts calculated in the previous steps for each employee. The result is your aggregate non-exempt amount for the FBT year.

     

    Example: Calculate the aggregate non-exempt amount for an eligible public benevolent institution or health promotion charity

    A public benevolent institution has two employees with an individual grossed-up non-exempt amount greater than $30,000. One employee has an amount of $43,000, and the other has an amount of $45,000 – both in respect of car fringe benefits.

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

    ($43,000 – $30,000) + ($45,000 – $30,000)

    = $28,000

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

    End of example

    15 Fringe benefits taxable amount

    Place the amount at item 14C at item 15.

    You must complete this item because it (and item 16) forms the basis of self assessing any FBT liability.

    16 Amount of tax payable

    This is 47% of the amount you wrote at item 15 (the FBT rate multiplied by the fringe benefits taxable amount).

    You must complete this item because it (and item 15) forms the basis of self assessing any FBT liability.

    17 Aggregate non-rebatable amount

    Leave this item blank and go to item 19. Eligible public benevolent institutions and health promotion charities already have access to other concessions and are not rebatable employers.

    18 Amount of rebate

    Leave this item blank. Eligible public benevolent institutions and health promotion charities already have access to other concessions and are not rebatable employers.

    19 Sub-total

    For public benevolent institutions and health promotion charities, this amount is the same as item 16.

    20 to 25

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

    However, at item 23, you must include the taxable value of benefits provided (not the aggregate non-exempt amount) if you are any of the following:

    • an eligible public benevolent institution
    • an eligible health promotion charity
    • public hospital
    • non-profit hospital
    • public ambulance service.

    The information you include in the 'Taxable value of benefits' column is based on the total of the individual base non-exempt amounts for all employees calculated at steps 3 and 5 of item 14C in the table above.

    The figures you place in the 'Taxable value of benefits' column must be the amounts before they are grossed-up and before the $30,000 capping amounts are deducted.

    Example: A completed return for an eligible public benevolent institution or health promotion charity

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

    The figures used are from previous examples. The value of the car fringe benefits at item 23 is the taxable value of benefits provided (45,000 + 43,000)/2.0802, and not the aggregate non-exempt amount.

    End of example
    Last modified: 27 Mar 2015QC 44652