Non-Profit News Service No. 0441 – Meeting your FBT obligations

Employers who qualify for a fringe benefits tax (FBT) rebate are referred to as ‘rebatable employers’. If you are a rebatable employer in the not-for-profit sector and provide fringe benefits to your employees, you should be aware of the following:

  • the rebate reduces but does not eliminate your FBT obligation - you may still need to lodge an FBT return if you provide fringe benefits
  • each employer is required to lodge their own FBT return – make sure you report separately from other employers who may be part of the same group
  • charities that are institutions must first be registered with the Australian Charities and Not-for-profits Commission (ACNC) and then endorsed by the ATO to access the FBT rebate
  • public benevolent institutions and health promotion charities are not rebatable employers, but may be entitled to an FBT exemption. These clients must register with ACNC and seek endorsement by us to access the exemption.

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    Last modified: 02 Mar 2016QC 48073