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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