Public Benevolent Institutions

A public benevolent institution (PBI) is a non-profit institution organised for the direct relief of poverty, sickness, suffering, distress, misfortune, disability or helplessness. The characteristics of a PBI are:

  • it is set up for needs that require benevolent relief
  • it relieves those needs by directly providing services to people suffering from them
  • it is carried on for the public benefit
  • it is non-profit
  • it is an institution, and
  • its dominant purpose is providing benevolent relief.

Public benevolent institutions (PBIs) must be endorsed by the Australian Tax Office to access the following tax concessions:

  • income tax exemption
  • goods and services tax (GST) charity concessions, or
  • fringe benefits tax (FBT) exemption.

Examples of PBIs are non-profit organisations that:

  • provide hostel accommodation for the homeless
  • treat sufferers of disease
  • provide home help for the aged and the infirm, or
  • rescue people who are lost or stranded.

As a result of accessing the FBT Exemption, employees of PBI Organisations are eligible to Salary Package up to $15,899.93 of tax free benefits per FBT year.

Please click the following link to view a salary packaging worked example for PBI Employees.