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  • FBT rebate

    Your not-for-profit organisation may qualify for the FBT rebate if it is a non-government organisation and a:

    • charity that is an institution
    • certain type of scientific or public educational institution
    • trade union and employer association
    • not-for-profit organisation established to encourage music, art, literature or science
    • not-for-profit organisation established for musical purposes
    • not-for-profit organisation established to encourage or promote a game, sport or animal races
    • not-for-profit organisation established for community service purposes
    • not-for-profit organisation established to promote the development of aviation or tourism
    • not-for-profit organisation established to promote the development of Australian information and communications technology resources
    • not-for-profit organisation established to promote the development of the agricultural, pastoral, horticultural, viticultural, aquacultural, fishing, manufacturing or industrial resources of Australia.

    The FBT rebate is not available to:

    • charities that are not institutions (see note)
    • charities that are institutions established by a law of the Australian Government, a state or a territory – examples are public universities, public museums and public art galleries (see note)
    • public benevolent institutions and health promotion charities – these organisations are eligible for the FBT exemption.

    Note: These charities may be eligible for the FBT rebate for a limited period from 3 December 2012.

    Organisations that qualify for a FBT rebate are referred to as 'rebatable employers'.

    Rebatable employers are entitled to have their FBT liability reduced by a rebate equal to:

    • 48% of the gross FBT payable, subject to a $30,000 capping threshold for the 2015 and earlier FBT years
    • 49% of the gross FBT payable, subject to a $31,177 capping threshold for the 2016 and 2017 FBT years
    • 47% of the gross FBT payable, subject to a $30,000 capping threshold for the 2018 FBT year and onwards.

    If the total grossed-up taxable value of fringe benefits provided to an employee is more than the capping threshold a rebate cannot be claimed for the FBT liability on the excess amount. The capping threshold applies even if the rebatable employer did not employ the employee for the full FBT year. For example, if the total grossed-up value of benefits provided to an employee between October and March was $15,000, a rebate applies to all of the FBT payable for providing these benefits.

    See also:

    Last modified: 12 Dec 2017QC 46337