FBT & salary packaging for charities — set up right, reported right.
Public benevolent institutions, health promotion charities and other eligible NFPs get valuable FBT concessions. We set up salary packaging properly, track the caps and lodge the FBT return.
A real benefit for staff — if the caps are managed.
FBT concessions let eligible NFPs offer staff a tax-effective salary packaging benefit. The concession depends on what type of organisation you are.
| Employer type | Concession | Cap per employee (grossed-up) |
|---|---|---|
| Public benevolent institutions & health promotion charities | FBT exemption | $30,000 |
| Public & not-for-profit hospitals, public ambulance services | FBT exemption | $17,000 |
| Rebatable employers (e.g. many other charities and NFPs) | FBT rebate (47%) | $30,000 |
Salary-packaged meal entertainment and entertainment facility leasing benefits have a separate grossed-up cap of $5,000 per employee.
What the cap means in salary packaging terms
The $30,000 cap is a grossed-up amount. For benefits where no GST credit can be claimed, it equals about $15,900 of benefits per employee each FBT year. Where a GST credit can be claimed, it's about $14,421. Going over the cap means FBT is payable on the excess.
The FBT year and the return
The FBT year runs from 1 April to 31 March. If you need to lodge, the return is due 21 May if you lodge yourself, or generally 25 June if a tax agent lodges electronically for you.
What we do
- Confirm your FBT status (exempt, rebatable or neither)
- Set up salary packaging policies and payroll treatment
- Track each employee's packaged benefits against the caps
- Prepare and lodge the annual FBT return
- Reportable fringe benefits amounts for STP finalisation
Last reviewed October 2026. General information only — not advice for your organisation. Rules change; call us to confirm how they apply to you.
Simple for the board. Done properly.
- 1
Check your status
We confirm whether you're an FBT-exempt employer, a rebatable employer or neither.
- 2
Set it up
Packaging policy, payroll codes and cap tracking for each employee.
- 3
Lodge & report
FBT return lodged on time and reportable amounts sorted for STP.
FBT & salary packaging — common questions.
Is it $15,900 or $30,000?
Both describe the same cap. $30,000 is the grossed-up amount in the law. For benefits with no GST credit, that equals about $15,900 of actual benefits; where a GST credit applies, it's about $14,421.
Are all charities FBT-exempt?
No. The $30,000 exemption cap is for public benevolent institutions and health promotion charities. Many other charities and NFPs are rebatable employers, which get a rebate rather than a full exemption.
What about meal entertainment cards?
Salary-packaged meal entertainment and entertainment facility leasing benefits have their own separate grossed-up cap of $5,000 per employee.
Do we need to lodge an FBT return?
If you provided fringe benefits and have an FBT liability, yes. We check your position each year and lodge where required.
When is the FBT return due?
21 May if you lodge yourself, or generally 25 June if a tax agent lodges electronically for you.
Salary packaging
worth getting right.
15 minutes on the phone. No charge. We'll check your FBT status and your packaging setup and tell you what's needed.