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Fringe benefits tax rules tightened for not-for-profits

Published on 11 Aug 2015

Currently, employees of certain not-for-profits can salary sacrifice entertainment benefits.  If they do so, no FBT is payable by the employer nor does it have to be reported.  Those not-for-profits which are not exempt, but rebateable, would receive a partial FBT rebate.

The 2015/16 Budget included a provision for this benefit to be substantially reduced.  From 1 April 2016, there will be a separate, single, grossed-up cap of $5,000 for salary packaged meal entertainment and entertainment facility leasing expenses provided to employees of public benevolent institutions, health promotion charities, public and not-for-profit hospitals and public ambulance services.

The charges are subject to draft legislation passing through the parliamentary process

For other fringe benefits, employees of public benevolent institutions and health promotion charities have an exemption cap currently at $31,177, whilst employees of public and not-for-profit hospitals and public ambulance services have a current exemption of $17,677

 

 

Andrew and Tony Lovett

11 August 2015

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