FBT Exempt Employers

FBT Exemption means as an organisation you are exempt from paying FBT. (up to the relevant capping threshold)

If your organisation is eligible for FBT exemption, benefits you provide your employees are exempt from FBT where the total grossed-up value of certain  benefits 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 an employee has exceeded the capping threshold, your organisation will need to pay FBT on the excess.

The current Fringe Benefits Tax Rate is:  47%  (for FBT Year ending 31 March 2018)

The following table outlines the types of organisations that are eligible for FBT exemption, and the relevant capping thresholds that apply.

Types of organisations eligible for FBT exemption

Capping threshold

    Public Benevolent Institutions (other than hospitals)     $30,000 per employee
    Health Promotion Charities     $30,000 per employee
    Public and non-profit hospitals     $17,000 per employee
    Public ambulance services     $17,000 per employee