Not for Profit FBT Calculator
30 July 2015 at 11:07 am
The Australian Taxation Office has released a Not for Profit Fringe Benefits Tax calculator suitable for use on mobile devices.
The ATO said the calculator allows Public Benevolent Institutions (PBIs), health promotion charities (HPCs), rebatable employers, public and Not for Profit hospitals and public ambulance services to work out an estimate of the amount of FBT payable for the fringe benefits that they provide to employees, employees’ associates or third parties by arrangement.
The ATO said the intent of the redesigned tool is to allow the use of the calculator on mobile devices, such as smartphones and tablets.
It said that during the redesign, the calculator was further enhanced by:
adding additional entities – public and Not for Profit hospitals and public ambulance services were added to the entity types that can use the calculator
using aggregate inputs to reduce the number of amounts users must enter
adding the option of saving the report as a PDF file, instead of only printing
The calculator considers the effects of GST as well as the relevant capping amounts.
In June the Federal Treasury released a consultation paper on limiting fringe benefits tax concessions on salary packaged entertainment benefits which affect the Not for Profit sector.
The draft legislation and explanatory material put in place the 2015-16 Budget measures that will apply from 1 April 2016.
“The measure will introduce a separate single grossed-up cap of $5,000 for salary packaged meal entertainment and entertainment facility leasing expenses (entertainment benefits) for employees of public benevolent institutions, health promotion charities and employees of public and Not for Profit hospitals and public ambulance services,” Treasury said.
“Currently these employees can salary package entertainment benefits with no FBT payable by the employer and without the benefits being reported.
“All salary packaged entertainment benefits will also become reportable fringe benefits.
This measure will improve the integrity of the tax system by introducing a limit on the use of these benefits.”
The White Paper, entitled Re:think, Better tax, Better Australia, includes a separate section on the Not for Profit sector which points out that while existing tax concessions help increase the level of activity in the NFP sector, the value of revenue forgone from the concessions is significant and growing steadily.
The closing date for submissions on the draft legislation is Friday 21 August 2015.
Go to the: Not-for-profit FBT calculator