All organisations Australia-wide have the ability to provide fringe benefits to their staff as long as the employee enters into an effective salary sacrifice agreement and you (as the employer) pays the appropriate amount of Fringe Benefits Tax (FBT).
In many cases though an organisation will not provide fringe benefits as an option unless the organisation has some sort of FBT concession. (Note: there are certain benefits that can be provided which do not attract FBT)
This is because in most scenerios salary packaging will otherwise result in a significant Fringe Benefits Tax (FBT) liability for the organisation.
Thus organisations which have FBT Exemption are generally more likely to offer Salary Packaging to employees due to the FBT concessions granted by the ATO.
There a few tax concessions which apply to particular types of organisations in the non-profit sector.
FBT concessions can enable certain non-profit organisations to reduce or eliminate the organisations FBT liabilty as a result of providing certain fringe benefits to employees.
The following sections discuss FBT concessions and the types of non-profit organisations that can access them:
- FBT Exemption
- FBT Rebate
- certain benefits provided by Religious Institutions and non-profit
Organisations with FBT Concessions will generally need to meet the following criteria:
1) be not-for-profit
2) have a Charitable purpose
3) benefit the public
4) have and ABN
5) meet governance standards
You will be able to check any details of your registration through the Australian Charities and Not-For-Profits Commission (ACNC)