Fringe Benefit Tax (FBT) Exemption

16 APR

A not-for-profit organisation may be exempt from FBT if it is a: registered Public Benevolent Institution (PBI; other than public and not-for-profit hospitals) endorsed by the ATO; registered Health Promotion Charity (HPC) endorsed by the ATO; public or not-for-profit hospital public ambulance service.

Capping thresholds apply to organisations that are eligible for FBT exemption. The threshold amount depends on the type of organisation.

Benefits provided are exempt from FBT if the total grossed-up value of certain benefits (which are benefits that are not otherwise exempt) provided for each employee during the FBT year is equal to, or less than, the capping threshold.

If the total grossed-up value of fringe benefits provided to any employee is more than the capping threshold, the organisation will need to report the details and pay FBT on the excess.

more information available at the ATO website.


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