Types of Employers
General Employers
A general employer is one that does not receive any FBT exemptions from the ATO. Any benefit provided to staff attracts the full FBT Rate of 46.5%.
Public Benevolent Institution (PBI)
As per the ATO web site:
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.
Because of these unique activities the ATO provide with a number of tax benefits, one of which effects salary packaging. Depending on the PBI status employees of a PBI will receive FBT exemption on grossed up benefits equal to or below the following values;
- PBI other than Hospitals - $30,000
- Health Promotion Charity other than hospitals - $30,000
- PBI Public or non profit Hospital - $17,000
- Public Ambulance Services - $17,000
Benefits provided over and above these grossed up values will attract the full FBT rate.
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