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This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law.

You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4.

Edited version of your written advice

Authorisation Number: 1012767442008

Ruling

Subject: Religious practitioners and exempt benefits

Question

Are the benefits provided to the employees exempt benefits under section 57 of the Fringe Benefits Tax Assessment Act 1986 (FBTAA)?

Answer

Yes

This ruling applies for the following periods:

Year ended 31 March 2015

Year ended 31 March 2016

Year ended 31 March 2017

Relevant facts and circumstances

You are registered under the Australian Charities and Not-for-profits Commission Act 2012 (ACNC Act) as the subtype of an entity mentioned in column 2 of item 4 of the table in subsection 25-5(5) of the ACNC Act.

You have previously received a private ruling in relation to the application of section 57 to the employees.

The facts of the situation have not changed since that ruling issued.

Relevant legislative provisions

Fringe Benefits Tax Assessment Act 1986 Section 57

Fringe Benefits Tax Assessment Act 1986 Subsection 136(1)

Income Tax Assessment Act 1997 Subsection 995-1(1)

Australian Charities and Not-for-profits Commission Act 2012

Reasons for decision

Are the benefits provided to the employees exempt benefits under section 57 of the Fringe Benefits Tax Assessment Act 1986 (FBTAA)?

Section 57 of the FBTAA states the following:

Where:

    (a) the employer of an employee is a registered religious institution; and

    (b) the employee is a religious practitioner; and

    (c) a benefit is provided to, or to a spouse or a child of, the employee; and

    (d) the benefit is not provided principally in respect of duties of the employee other than:

      (i) any pastoral duties; or

      (ii) any other duties or activities that are directly related to the practice, study, teaching or propagation of religious beliefs;

    the benefit is an exempt benefit.

(a) Is the employer of the employee a registered religious institution?

The term 'registered religious institution' is defined in subsection 136(1) of the FBTAA to mean an institution that is:

    • a registered charity; and

    • registered under the Australian Charities and Not-for-profits Commission Act 2012 as the subtype of entity mentioned in column 2 of item 4 of the table in subsection 25-5(5) of that Act.

You are registered under the Australian Charities and Not-for-profits Commission Act 2012 (ACNC Act) as the relevant type of entity.

Therefore, this requirement is met.

(b) Is the employee a religious practitioner?

The previous private ruling accepted the employees are religious practitioners for the purposes of section 57 of the FBTAA. As the facts have not changed since that ruling issued, it is accepted that this requirement is met.

(c) Is the benefit provided to the employee, or the spouse or child of the employee?

The benefit will be provided to the employee, or the spouse or child of the employee.

(d) Is the benefit provided principally in respect of duties of the employee for

    (i) any pastoral duties; or

    (ii) any other duties or activities that are directly related to the practice, study, teaching or propagation of religious beliefs?

Pastoral and other duties are discussed in paragraphs 20 to 29 of Taxation Ruling TR 92/17 Income tax and fringe benefits tax: exemptions for 'religious institutions'.

In considering these requirements, the previous ruling accepted this requirement was met. As the facts have not changed since that ruling issued, it is accepted this requirement is met.

Therefore, as all the requirements of section 57 of the FBTAA are met, the benefits provided to the School Chaplains will be exempt under section 57 of the FBTAA.


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