The fringe benefits tax (FBT) rebate is 47% of the gross FBT payable, up to a capping threshold.
Your organisation qualifies for the FBT rebate if it is a non-government organisation and a:
- charity that is an institution (but not a public benevolent institution) registered by the Australian Charities and Not-for-profits Commission and endorsed by the ATO
- religious institution registered by the Australian Charities and Not-for-profits Commission and endorsed by the ATO
- certain type of scientific institution or public educational institution
- trade union or employer association
- not-for-profit organisation established:
- to encourage music, art, literature or science
- for musical purposes
- to encourage or promote a game, sport or animal races
- for community service purposes
- to promote the development of aviation or tourism
- to promote the development of Australian information and communications technology resources
- to promote the development of the agricultural, pastoral, horticultural, viticultural, aquacultural, fishing, manufacturing or industrial resources of Australia.
Organisations that qualify for an FBT rebate are referred to as 'rebatable employers'.
The FBT rebate is not available to:
- charities that are not institutions
- charities that are institutions established by a law of the Australian Government, or a state or a territory – such as public universities, public museums and public art galleries
- public benevolent institutions and health promotion charities, which are eligible for the FBT exemption.
The rebate applies only to the first $30,000 (the capping threshold) of the grossed-up value of fringe benefits provided to an employee. If the total grossed-up taxable value of fringe benefits provided to an employee exceeds the capping threshold, the rebate doesn't apply to the excess amount.
The full capping threshold applies even if an employee works for your organisation for only part of the FBT year.
Benefits not counted in the capping threshold
The following benefits are not counted in the FBT rebate capping threshold:
- car parking fringe benefits
- meal entertainment benefits (not salary packaged)
- entertainment facility leasing expenses.
Use the calculator to work out your FBT and rebate for the fringe benefits you provide to each of your employees.Not-for-profit FBT calculator
To calculate your FBT amounts and rebate manually, see FBT guide: 6.11 Calculating the FBT rebate.Work out if your not-for-profit organisation is entitled to the FBT rebate and check the rebate capping threshold.