Show download pdf controls
  • Completing your FBT return 2017 – not-for-profit employers

    Rebatable employers

    Rebatable employers are certain non-government, not-for-profit organisations.

    Those that qualify for an FBT rebate are:

    • registered charities (other than public benevolent institutions or health promotion charities) who are an institution; who are not established under a government law and who are endorsed by us as a tax concession charity
    • certain scientific or public educational institutions
    • certain trade unions and employer associations located in Australia that are exempt from income tax
    • not-for-profit tax exempt organisations established for  
      • musical purposes
      • community service purposes
       
    • not-for-profit tax exempt organisations established for the encouragement of  
      • science
      • animal racing
      • art
      • a game or sport
      • literature
      • music
       
    • not-for-profit tax exempt organisations established for the purpose of promoting the development of  
      • aviation or tourism
      • Australian information and communications technology resources
      • Australia’s agricultural, pastoral, horticultural, viticultural, aquacultural, fishing, manufacturing or industrial resources.
       

    From 3 December 2012, charities must be registered with the ACNC and endorsed by us to access this concession.

    Charities that were endorsed by us as income tax exempt charities before 3 December 2012 are automatically registered with the ACNC – they don't need to re-register.

    Charities that were not endorsed by us as income tax exempt charities before 3 December 2012 must register as a charity with the ACNC and then be endorsed by us to access charity tax concessions, including the FBT rebate for registered charities.

    See also:

    14 to 16

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

    17 Aggregate non-rebatable amount

    Write at item 17 your aggregate non-rebatable amount.

    Your aggregate non-rebatable amount is the total grossed-up taxable value of the fringe benefits you provide to an individual employee that exceeds $31,177.

    You are entitled to a rebate of 49% of your FBT payable on the grossed-up taxable value of benefits you provide to each employee that does not exceed $31,177.

    The FBT rebate cannot be applied to your aggregate non-rebatable amount.
    For the year ending 31 March 2017, the provision of salary packaged meal entertainment and entertainment facility leasing benefits form part of your aggregate non-rebatable amount where the grossed-up taxable value of such benefits exceeds $5,000.

    The following steps will assist you in calculating your aggregate non-rebatable amount.

    Step

    Action

    1

    Establish the employee's individual fringe benefits amount.

    The individual fringe benefits amount is the value of all benefits other than excluded benefits. For a list of excluded benefits, see chapter 5.2 of FBT: A guide for employers.

    2

    Identify the amount of GST-creditable fringe benefits included in the amount for step 1.

    The result from this step is 'amount 1'.

    3

    Identify those fringe benefits not taken into account in the calculation for step 2 (that is, the result for step 1 minus the result for step 2).

    The result from this step is 'amount 2'.

    4

    Determine the employee’s share of the benefits that would be excluded fringe benefits. For a list of excluded benefits, see chapter 5.2 of FBT: A guide for employers.

    The following excluded fringe benefits are specifically not included in this calculation are :

    • meal entertainment benefits not provided under a salary packaged arrangement
    • car parking fringe benefits
    • entertainment facility leasing benefits not provided under a salary packaged arrangement.

     

    5

    Identify the GST-creditable fringe benefits included in step 4.

    The result from this step is 'amount 3'.

    6

    Identify those excluded fringe benefits that are not taken into account under step 5 (that is, the result for step 4 minus the result for step 5).

    The result from this step is 'amount 4'.

    7

    Add amount 1 and amount 3 (that is, the result from step 2 plus the result from step 5).

    This is the type 1 individual base non-rebatable amount.

    8

    Multiply the result from step 7 by 2.1463 (the type 1 gross-up rate).

    This is the individual grossed-up type 1 non-rebatable amount

    9

    Add amount 2 and amount 4 (that is, the result from step 3 plus the result from step 6).

    This is the type 2 individual base non-rebatable amount.

    10

    Multiply the result from step 9 by 1.9608 (the type 2 gross-up rate).

    This is the individual grossed-up type 2 non-rebatable amount

    11

    For each employee add:

    • the individual grossed-up type 1 non-rebatable amount for the year ending 31 March 2017 (that is, the result from step 8)
    • the individual grossed-up type 2 non-rebatable amount for the year ending 31 March 2017 (that is, the result from step 10).

    The result is the individual grossed-up non-rebatable amount for the employee.

    12

    Subtract $31,177 from the individual grossed-up non-rebatable amount for each employee (that is, the result from step 11 minus the FBT rebate cap).

    If the individual grossed-up non-rebatable amount for an employee is equal to or less than $31,177, the amount calculated under this step is nil.

    If you have not provided meal entertainment or entertainment facility leasing expense benefits under a salary packaging arrangement for the year ending on 31 March 2017:

    • Step 13: Add together the amounts calculated at step 12 for each employee. This is your aggregate non-rebatable amount.
    • Step 14: Multiply the total amount calculated under step 13 by 49% (the FBT tax rate). Write this amount at item 17.

    If you have provided meal entertainment or entertainment facility leasing expense benefits under a salary packaging arrangement for the year ending on 31 March 2017, continue with the steps in the below table.

    Step

    Action

    13

    Determine how much of the employee’s individual fringe benefits amount relates to salary packaged meal entertainment and entertainment facility leasing expense benefits.

    14

    Determine how much of the employee’s individual fringe benefits amount relates to GST creditable salary packaged meal entertainment and entertainment facility leasing expense benefits.

    Multiply the result by 2.1463 (the type 1 gross-up amount).

    15

    Determine how much of the individual grossed-up non-rebatable amount relates to non-GST creditable salary packaged meal entertainment and entertainment facility leasing expense benefits (that is, the result for step 13 minus the result for step 14).

    Multiple the result by 1.9608 (the type 2 gross-up amount).

    16

    Add the amounts calculated at steps 14 and 15. This is the individual grossed-up salary packaged meal entertainment and entertainment facility leasing expense benefits.

    17

    Subtract from the amount calculated at Step 12 by the lesser of:

    • $5,000 and

    the amount calculated at step 16.

    18

    Add together the amounts calculated at step 17 for each employee.

    Multiply the result by 49% (the FBT rate). Write this amount at item 17. This is your aggregate non-rebatable amount.

    18 Amount of rebate

    Show at item 18 the amount of rebate you are entitled to. If you complete item 18, you must also complete item 17, even if the amount is nil. Use the following formula to calculate the rebate amount:

    49%

    x

    (item 16 – item 17)

    x

    rebatable days in year
    _______________________
    total days in year

    Gross tax is the amount at item 16 – that is, the total amount of tax calculated on the fringe benefits taxable amount.

    The aggregate non-rebatable amount is the part of the taxable value of fringe benefits you cannot obtain a rebate for, calculated at item 17.

    Rebatable days in the year are the number of days during the year ending on 31 March 2017 that you qualified as a rebatable employer.

    The total days in the year means the number of days you were an employer.

    Write at item 18 the amount of rebate you are entitled to.

    19 Sub-total

    Subtract from item 16 the amount (if any) at item 18. Write this amount at item 19 even if the amount is nil.

    You must complete this item because it forms the basis of self-assessing any FBT liability.

    20 to 25

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

    Example 6: Rebatable employer return

    You provide the following benefits for the year ending 31 March 2017 to your employees:

    • pay Mark, Sam and eight other employees' children’s school fees (an expense payment fringe benefit)
    • provide Mark and Sam with cars for private use (a car fringe benefit)
    • allow Mark and Sam to purchase restaurant meals on a credit card that is paid by the employer at the end of the month, under a salary packaging arrangement

    The car fringe benefits are type 1 benefits because they are GST taxable supplies with an entitlement to a GST credit.

    Mark's car fringe benefit calculated using the statutory formula method (GST taxable supply with an entitlement to a GST credit)

    $14,000

    Sam's car fringe benefit calculated using the statutory formula method (GST taxable supply with an entitlement to a GST credit)

    $15,000

    Type 1 aggregate amount

    $29,000

    = $29,000 × 2.1463

     

    = $62,242

     

    The school fees are type 2 benefits because they are GST-free supplies with no GST credit entitlement.

    10 x expense payment fringe benefits: school fees

    10 x $6,000

    Type 2 aggregate amount

    $60,000

    = $60,000 × 1.9608

     

    = $117,648.00

     

    The use of the meal card is a type 2 benefit because it is an input taxed financial supply with no GST credit entitlement.

    Mark's meal entertainment fringe benefit: credit card

    Sam's meal entertainment fringe benefit: credit card

    $5,500

    $2,295

    Type 2 aggregate amount

    $7,795

    = $7,795 × 1.9608

     

    = $15,284.44

    The type 2 aggregate amount is therefore 117,648 + 15,284 = $132,932.

     

    You have:

    • a fringe benefits taxable amount of $195,174  ($62,242 + $117,648 + $15,284)
    • gross tax of $95,635.26  ($195,174 x 49%).

    Sam and Mark have an individual grossed-up non-rebatable amount greater than $31,177. Mark has an amount of $52,597.40, and Sam has an amount of $43,959.30. Sam's amount does not include the salary packaged entertainment as the value does not exceed the separate grossed-up cap ($2,295 x 1.9608 = $4,500).

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

    ([$52,597.40 – $31,177- $5,000] + [$43,959.30 – $31,177]) x 49%

    = $14,309.32

    The calculation of the rebate amount is as follows:

    49% x ($95,635.26 – $14,309.32)

    = $39,849.71

     

    Items 20 to 25

    End of example
    Last modified: 22 Mar 2017QC 51524