Public hospitals, non-profit hospitals and public ambulance services
The capping threshold for public hospitals, non-profit hospitals and public ambulance services is different to that for eligible public benevolent institutions or health promotion charities.
1 to 13
Complete these items in 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 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 (see Public benevolent institutions and health promotion charities) other than at step 8 of the calculation, which should be as follows:
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:
End of example
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Complete these items in the same way as an eligible public benevolent institution and health promotion charity would – see Public benevolent institutions and health promotion charities.
Last modified: 27 Mar 2015QC 44652