Commonwealth Consolidated Acts Commonwealth Consolidated Acts[Rebatable employer]
(1) For the purposes of this section, an employer is a rebatable employer for a year of tax if the employer is not a public benevolent institution, is not a health promotion charity, and is covered by any of the following paragraphs at any time during the year of tax:
(a) a religious institution;
(aa) a non-profit scientific institution that:
(i) is engaged solely in research into the causes, prevention or cure of diseases in humans; and
(ii) is established by a law of the Commonwealth, a State or a Territory; and
(iii) is not conducted by or on behalf of the Commonwealth, a State or a Territory;
(b) a scientific or public educational institution (other than an institution of the Commonwealth, a State or a Territory);
(baa) a charitable institution (other than an institution of the Commonwealth, a State or a Territory) that is endorsed under subsection 123E(1);
(ba) a school (including a pre-school but not including a tertiary institution) that:
(i) although established by or under a law of the Commonwealth, a State or a Territory, is not conducted for or on behalf of the Commonwealth, a State or a Territory; and
(ii) is not conducted for the purpose of profit or gain to the persons or body of persons conducting it;
(e) a trade union;
(f) an association of employers or employees registered or recognised under the Fair Work (Registered Organisations) Act 2009 or a law of the Commonwealth, a State or a Territory relating to the settlement of industrial disputes;
(g) a non-profit society, non-profit association, or non-profit club, established for musical purposes, or for the encouragement of music, art, science or literature;
(h) a non-profit society, non-profit association, or non-profit club, established for the encouragement or promotion of a game or sport;
(i) a non-profit society, non-profit association, or non-profit club, established for the encouragement or promotion of animal races;
(j) a non-profit society, non-profit association, or non-profit club, established for community service purposes (not being political purposes or lobbying purposes);
(k) a non-profit society, or non-profit association, established for the purpose of promoting the development of aviation or tourism;
(ka) a non-profit society, or non-profit association, established for the purpose of promoting the development of Australian information and communications technology resources;
(l) a non-profit society, or non-profit association, established for the purpose of promoting the development of the agricultural, pastoral, horticultural, viticultural, aquacultural, fishing, manufacturing or industrial resources of Australia.
(1A) Despite subsection (1), if the employer is a charitable institution at any time during the year of tax, the employer is not a rebatable employer for the year of tax unless the employer is endorsed under subsection 123E(1) at that time.
[Entitlement to rebate]
(2) If an employer is a rebatable employer for a year of tax earlier than the year of tax beginning on 1 April 2000, the employer is entitled to a rebate of tax in the employer's assessment for the year of tax equal to the amount worked out using the formula:
where:
"Gross tax " means the amount of tax payable on the fringe benefits taxable amount of the employer of the year of tax (assuming that this section had not been enacted).
"Rebatable days in year" means the number of whole days in the year of tax when the employer was covered by any of paragraphs (1)(a) to (l) (inclusive).
"Total days in year" means the number of days in the year of tax.
Rebate for year of tax 2000-2001 and later years
(2A) If an employer is a rebatable employer for the year of tax beginning on 1 April 2000 or a later year of tax, the employer is entitled to a rebate of tax in the employer's assessment for the year of tax concerned equal to the amount worked out using the formula:
where:
"gross tax" means the amount of tax payable on the fringe benefits taxable amount of the employer of the year of tax (assuming that this section had not been enacted).
"rebatable days in year" means the number of whole days in the year of tax when the employer engaged in activities as an employer covered by any of paragraphs (1)(a) to (l) (inclusive).
"total days in year" means the number of days in the year of tax excluding the days on which the employer did not engage in activities as an employer.
How to work out aggregate non-rebatable amount
(2B) An employer's aggregate non-rebatable amount for the year of tax is the amount worked out as follows.
Method statement
Step 1. For each employee, add:
(a) the individual grossed-up type 1 non-rebatable amount (see subsection (2C)) in relation to the employer for the year of tax; and
(b) the individual grossed-up type 2 non-rebatable amount (see subsection (2D)) in relation to the employer for the year of tax.
The result is the individual grossed-up non-rebatable amount for the employee.
Step 2. Reduce the individual grossed-up non-rebatable amount for each employee of the employer:
(a) to zero for the year of tax beginning on 1 April 2000; and
(b) by $30,000, but not below zero, for a later year of tax.
Note: Paragraph (a) means the employer's aggregate non-rebatable amount for the year of tax beginning on 1 April 2000 will be nil.
Step 3. Add up the results of step 2 for all the employer's employees.
Step 4. Multiply the sum from step 3 by the FBT rate. The result is the employer's aggregate non-rebatable amount for the year of tax.
Individual grossed-up type 1 non-rebatable amount
(2C) For the purposes of step 1 in the method statement in subsection (2B), the individual grossed-up type 1 non-rebatable amount of an employee in relation to the employer for the year of tax is:
Individual grossed-up type 2 non-rebatable amount
(2D) For the purposes of step 1 in the method statement in subsection (2B), the individual grossed-up type 2 non-rebatable amount of an employee in relation to the employer for the year of tax is:
Working out the type 1 individual base non-rebatable amount
(2E) An employee's type 1 individual base non-rebatable amount in relation to the employer for the year of tax is worked out by adding the amounts worked out under step 3 of the method statement in subsection (2G) and step 3 of the method statement in subsection (2H).
Working out the type 2 individual base non-rebatable amount
(2F) An employee's type 2 individual base non-rebatable amount in relation to the employer for the year of tax is worked out by adding the amounts worked out under step 4 of the method statement in subsection (2G) and step 4 of the method statement in subsection (2H).
Working out the subsection (2G) amounts
(2G) An employee's subsection (2G) amounts for the year of tax are worked out as follows.
Method statement
Step 1. Work out under section 5E for each of the employer's employees the employee's individual fringe benefits amount (if any) for the year of tax in respect of the employee's employment by the employer.
Step 2. Identify the benefits taken into account in step 1 that are GST-creditable benefits (see section 149A).
Step 3. So much of the amount worked out under step 1 that relates to the benefits identified under step 2 is the step 3 of subsection (2G) amount for the individual.
Step 4. The remainder of the amount is the step 4 of subsection (2G) amount for the individual.
Working out the subsection (2H) amounts
(2H) An employee's subsection (2H) amounts for the year of tax are worked out as follows.
Method statement
Step 1. Work out for each employee his or her share (if any) of the taxable values of the excluded fringe benefits for the year of tax in respect of the employee's employment by the employer, but disregarding benefits:
(a) that constitute the provision of meal entertainment as defined in section 37AD (whether or not the employer made an election under section 37AA); or
(b) that are car parking fringe benefits; or
(c) whose taxable values are wholly or partly attributable to entertainment facility leasing expenses.
Step 2. Identify the benefits taken into account in step 1 that are GST-creditable benefits (see section 149A).
Step 3. So much of the amount worked out under step 1 that relates to the benefits identified under step 2 is the step 3 of subsection (2H) amount for the individual.
Step 4. The remainder of the amount is the step 4 of subsection (2H) amount for the individual.
(3) For the purposes of this section, an institution established by a law of the Commonwealth, a State or a Territory is taken to be an institution of the Commonwealth, the State or the Territory, as the case requires.
(5) For the purposes of this section, a society, association or club is a non-profit society, non-profit association or non-profit club, as the case may be, if, and only if:
(a) the society, association or club is carried on otherwise than for the purposes of profit or gain to its individual members; and
(b) the society, association or club is neither:
(i) an incorporated company where all the stock or shares in the capital of the company is or are beneficially owned by:
(A) the Commonwealth, a State or a Territory; or
(B) an authority or institution of the Commonwealth, a State or a Territory; nor
(ii) an incorporated company where the company is limited by guarantee and the interests and rights of the members in or in relation to the company are beneficially owned by:
(A) the Commonwealth, a State or a Territory; or
(B) an authority or institution of the Commonwealth, a State or a Territory.
Definitions
(6) In this section:
"FBT rate" means the rate of fringe benefits tax for the year of tax.
"GST rate" means the rate of goods and services tax payable under the A New Tax System (Goods and Services Tax) Act 1999 for the year of tax.
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