Where your organisation is endorsed by us for the operation of a part of it that is an eligible public benevolent institution employer and the rest of the organisation is a rebatable employer, you must lodge FBT returns as follows:
- If the fringe benefits you provide to the employees of the public benevolent institution employer are less than the $31,177 capping threshold, then the organisation will continue to lodge an FBT return only as a rebatable employer.
- If the fringe benefits you provide to the employees of the public benevolent institution employer exceed the $31,177 capping threshold, you must pay tax on the aggregate non-exempt amount of the public benevolent institution employer.
In this situation, the organisation effectively lodges an FBT return as both a rebatable employer and as a public benevolent institution.
For more information on eligibility for this concession, including endorsement – phone us on 1300 130 248
1 to 13
Complete these items in the same way as a taxable employer would – see Taxable employers.
14 Calculated fringe benefits taxable amounts
For the amounts that you will be treated as a:
- rebatable employer: complete items 14A and 14B – as explained in the 'Rebatable employers' instructions in Non-profit organisations
- public benevolent institution employer: complete item 14C as explained in the instructions in Public benevolent institutions and health promotion charities.
15 Fringe benefits taxable amount
Show at item 15 the sum of the amounts at items 14A, 14B and 14C.
16 Amount of tax payable
This is 49% of the amount you wrote at item 15 (the FBT rate multiplied by the fringe benefits taxable amount).
17 Aggregate non-rebatable amount
You cannot claim a rebate on the aggregate non-exempt amount – you must add the tax payable on this amount to the aggregate non-rebatable amount.
Calculate the aggregate non-rebatable amount as shown in the rebatable employer instructions – see Rebatable employers. Add to this amount the tax payable on the aggregate non-exempt amount (item 14C x 49%).
Show the total at item 17.
18 Amount of rebate
Calculate your rebate as shown in the rebatable employer instructions for this item – see Rebatable employers.
Example: Calculate the amount of rebate
A non-profit organisation, part of which is endorsed for the operation of a public benevolent institution employer, has a fringe benefits taxable amount of $150,000 and gross tax of $73,500.00 ($150,000 x 49%). The taxable amount is made up of:
- $105,000 type 1 benefits (type 1 aggregate amount of $48,921.40 x 2.1463)
- $33,000 type 2 benefits (type 2 aggregate amount of $16,829.87 x 1.9608)
- an aggregate non-exempt amount of $12,000.
The employer was rebatable for the whole FBT year.
The employer has two employees in the rebatable part of the organisation with individual grossed-up non-rebatable amounts greater than $31,177. One employee has an amount of $50,000, and the other has an amount of $45,000.
The calculation of the aggregate non-rebatable amount is as follows:
($50,000 – $31,177) + ($45,000 – $31,177) x 49%
= $15,996.54
Add to this amount the tax payable on the aggregate non-exempt amount ($12,000 x 49%)
= $5,880.00
$15,996.54 + $5,880.00
= $21,876.54
The calculation of the amount of rebate is as follows:
0.49 x ($73,500.00 – $21,876.54)
= $25,295.50
The following information only applies to non-profit organisations operating a public benevolent institution employer.
19 Sub-total
Show at item 19 the amount at item 16 less the amount (if any) at item 18.
You would show the figures from this example at items 14 to 19 as:
20 to 25
Complete these items in the same way as a taxable employer would – see Taxable employers.
If the fringe benefits you provide to the employees of the public benevolent institution employer exceed the $31,177 capping threshold, at item 23, the 'Taxable value of benefits' must be the amounts before they are grossed-up and before the $31,177 capping amounts are deducted (not the aggregate non-exempt amount).
The information you include in the 'Taxable value of benefits' column is based on the total of the individual base non-exempt amounts for all employees you calculated at steps 3 and 5 of item 14C.
The figures you place in the 'Taxable value of benefits' column must be the amounts before the $31,177 capping amounts are deducted.