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  • Fringe benefits tax

    Not-for-profit organisations may need to register for fringe benefit tax (FBT) if they provide benefits to employees during an FBT year (1 April to 31 March).

    As a general rule, your not-for-profit organisation is not liable for FBT on payments made, or benefits provided, to independent contractors.

    FBT is a tax payable by employers who provide fringe benefits to their employees or to associates of their employees. This is the case whether or not the employer is the actual supplier of the benefit – for example, where the benefit is provided by an associate of the employer, or under an arrangement with a third party.

    If your not-for-profit organisation provides a fringe benefit to its employees or to associates of its employees (typically family members) for the employee's employment, your organisation may have an FBT liability. This is separate from income tax and is calculated on the taxable value of the fringe benefits provided.

    Even if your organisation is exempt from income tax, it may still have to pay FBT. However, certain FBT concessions can reduce your organisation's liability.

    This short video introduces you to the basics of the FBT concessions available to not-for-profit entities.

    Watch:

    Media: Not-for-profits and fringe benefits tax
    http://tv.ato.gov.au/ato-tv/media?v= bd1bdiubtanqimExternal Link (Duration: 3:18)

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    Last modified: 12 Dec 2017QC 16967