The office advises a not-for-profit organisation is a religious institution that has been established to advance or promote religious purposes and must be registered with the Australian Charities and Not-for-profits Commission (ACNC) as a charity and endorsed by the ATO to access the FBT rebate.
Religious institutions may also be eligible for FBT concessions for benefits they provide to religious practitioners; live-in carers and domestic employees.
The ATO said a religious institution does not need to be endorsed by it to access these concessions, but it must be a registered religious institution, meaning it is registered with the ACNC as a charity with a purpose of the advancement of religion.
The ATO recommends reading Taxation Ruling TR 2019/3 Fringe benefits tax: benefits provided to religious practitioners for more information.
Subject to certain requirements, benefits provided by registered religious institutions to religious practitioners are FBT exempt if they are mainly for the practitioners’ pastoral duties, or other duties related to the practice, study, teaching or propagation of religious beliefs.
If a registered religious institution’s activities include caring for elderly or disadvantaged people, certain benefits it provides to its employees are exempt from FBT.
The exemption is for live-in carers if the carer resides with the elderly or disadvantaged person in residential accommodation you provide. The benefits that may be exempt include the employees’ live-in accommodation, residential fuel, meals or other food and drink.
Benefits registered religious institutions provide to live-in and non-live-in domestic employees are FBT exempt in certain circumstances.
For a live-in employee, the employee’s duties must mainly involve domestic or personal services for religious practitioners and the practitioners’ relatives residing with them. The benefits that may be exempt include the employees’ live-in accommodation, residential fuel, meals or other food and drink.
For a non-live-in employee, the employee’s duties must also mainly involve domestic services for religious practitioners and the practitioners’ relatives residing with them. The exempt benefits are limited to food and drink consumed by the employee while carrying out employment-related duties.
