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  • Not-for-profit organisation operating partly as an eligible public benevolent institution employer

    If part of your organisation is endorsed by us to access the FBT exemption and the rest of the organisation is a rebatable employer, you must lodge FBT returns as follows:

    • If the total grossed-up value of certain benefits provided to the employees of the public benevolent institution employer are less than the $31,177 capping threshold, then you lodge your FBT return in the same way that a rebatable employer would.
    • If the total grossed-up value of certain benefits provided to employees of the public benevolent institution employer exceed the $31,177 capping threshold, you must pay tax on the aggregate non-exempt amount of the public benevolent institution employer. You effectively lodge your FBT return as both a rebatable employer and as a public benevolent institution employer, by following the below instructions.

    See also:

    14 Calculated fringe benefits taxable amounts

    For the amounts that you will be treated as a:

    15 Fringe benefits taxable amount

    Write at item 15 the sum of the amounts at items 14A, 14B and 14C even if the amount is nil.

    You must complete this item because it forms the basis of self-assessing any FBT liability.

    16 Amount of tax payable

    Multiply the amount you wrote at item 15 by 49% (the tax rate for the year ending 31 March 2017) and write the total at item 16 even if the amount is nil. This is the total FBT amount you are liable to pay.

    You must complete this item because it forms the basis of self-assessing any FBT liability.

    17 Aggregate non-rebatable amount

    Calculate the aggregate non-rebatable amount in the same way as a rebatable employer would– see Rebatable employers.

    Write at item 17 the total of this amount and the tax payable on the aggregate non-exempt amount (item 14C x 49%).

    18 Amount of rebate

    Calculate item 18 in the same way as a rebatable employer would – see Rebatable employers.

    19 Sub-total

    Write at item 19 the amount at item 16 less the amount (if any) at item 18 even if the amount is nil.

    You must complete this item because it forms the basis of self-assessing any FBT liability.

    Example 8: Items 14 to 19 for not-for-profit organisation operating partly as an eligible public benevolent institution employer

    You are a not-for-profit organisation, part of which is eligible for FBT exemption (as it is a public benevolent institution employer) and the rest of the organisation is a rebatable employer. You have a fringe benefits taxable amount of $150,000 for the year starting on 1 April 2016 made up of:

    • $105,000 type 1 benefits (type 1 aggregate amount of $48,921.40 x 2.1463)
    • $33,000 type 2 benefits (type 2 aggregate amount of $16,829.87 x 1.9608)
    • an aggregate non-exempt amount of $12,000.

    You have two employees in the rebatable part of your organisation with individual grossed-up non-rebatable amounts greater than $31,177. One employee has an amount of $50,000, and the other has an amount of $45,000.

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

    ($50,000 – $31,177) + ($45,000 – $31,177) x 49%
    = $15,996.54

    Add to this amount the tax payable on the aggregate non-exempt amount ($12,000 x 49%)
    = $5,880.00

    $15,996.54 + $5,880.00
    = $21,876.54

    The calculation of the amount of rebate is as follows:

    0.49 x (amount of tax payable - aggregate non-rebatable amount) .

    The amount of tax payable is 49% of the fringe benefits taxable amount, which equates to gross tax of $73,500 (0.49 x $150,000).

    The rebate calculation is:

    0.49 x ($73,500.00 – $21,876.54)
    = $25,295.50

    Example 8: Items 14 to 19 for not-for-profit organisation operating partly as an eligible public benevolent institution employer

    End of example

    20 to 25

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

    If the fringe benefits you provide to the employees of the public benevolent institution employer exceed the $31,177 capping threshold, at item 23, the 'Taxable value of benefits' must be the amounts before they are grossed-up and before the $31,177 capping amounts are deducted (not the aggregate non-exempt amount).

    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 you calculated at steps 3 and 5 of item 14C.

    The figures you place in the 'Taxable value of benefits' column must be the amounts before the $31,177 capping amounts are deducted.

    Last modified: 22 Mar 2017QC 51524