Fringe benefits tax for not-for-profit employers

If your not-for-profit (NFP) organisation provides a fringe benefit to its employees or associates of its employees (such as family members), it may have to pay fringe benefits tax (FBT).

FBT is separate from income tax. It is calculated on the taxable value of the fringe benefits provided.

Your organisation may be eligible for FBT concessions for not-for-profit organisations.

As a general rule, your NFP organisation is not liable for FBT on benefits provided to independent contractors or volunteers.