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# Public hospitals, non-profit hospitals and public ambulance services

Last updated 26 March 2015

The capping threshold for public hospitals, non-profit hospitals and public ambulance services is different to that for eligible public benevolent institutions or health promotion charities.

## 1 to 13

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

## 14 Calculated fringe benefits taxable amounts

You must complete only item 14C and not items 14A and 14B if you are a:

• public hospital
• non-profit hospital
• public ambulance service.

## Aggregate non-exempt amount (hospitals, ambulances, public benevolent institutions and health promotion charities only)

Public and non-profit hospitals have a capping threshold placed on the amount of FBT exempt fringe benefits that may be provided to employees. The concessional FBT treatment to these hospitals is capped at \$17,000 of the grossed-up taxable value of fringe benefits provided to each employee. Public ambulance services also qualify for this concession.

Where employees have been provided with benefits above the \$17,000 threshold, the employer will be subject to FBT on its aggregate non-exempt amount. This amount is calculated using the same steps as a public benevolent institution or a health promotion charity (see Public benevolent institutions and health promotion charities) other than at step 8 of the calculation, which should be as follows:

Step

Action

8

Subtract \$17,000 from the individual grossed-up non-exempt amount for each employee. If the individual grossed-up non-exempt amount is less than or equal to \$17,000, the amount calculated under this step is nil.

Start of example

Example: Calculate the aggregate non-exempt amount – hospital

A hospital has two employees with an individual grossed-up non-exempt amount greater than \$17,000. One employee has an amount of \$50,000, and the other has an amount of \$40,000.

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

(\$50,000 – \$17,000) + (\$40,000 – \$17,000) = \$56,000

You would show the figures from this example at item 14 as:

End of example

## 15 to 25

Complete these items in the same way as an eligible public benevolent institution and health promotion charity would – see Public benevolent institutions and health promotion charities.

QC44652