FBT Exempt Employers

March 22, 2022

FBT Exempt Employers

There are few categories of exempt employers for FBT.  There are none entirely exempt, there are relevant caps applicable. 


The most common employers are defined as a Public Benevolent Institution (PBI).  A PBI is defined as per the Australian Charities and Not-for-Profit Commission (ACNC).  The employer will also need to apply with the ATO for FBT Exempt status.  The capping threshold for PBI employers is $30,000. This is the grossed up reporting amount.  Essentially this means the first $14,422 - $15,900 (depending on the benefit provided) can be salary sacrificed by employees without any tax consequences.  Any an example of a PBI is a religious institution, i.e. Catholic School. 


The other common employers are Public and Not-for-Profit hospitals (inc Ambulance).  The capping threshold for these employers is $17,000.  Again this is the grossed up reporting amount.  Employees can receive benefits of $8,173 - $9,010 (depending on the benefit provided) without any tax consequences.


This is a basic summary please get in touch if you require further information.

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