Private ruling: FBT - Exemption for certain International Government Organisations
Date of advice: 4 March 2024
Published: 15 April 2024
Ruling period: Year ending 31 March 2025 | Year ending 31 March 2026 | Year ending 31 March 2027 | Year ending 31 March 2028 | Year ending 31 March 2029
Date scheme commenced: 1 April 2024

Ruling: Q1: Are benefits provided by you to your employees exempt, pursuant to Section 55 of the Fringe Benefits Tax Assessment Act 1986 (FBTAA)? | A1: Yes.

Relevant facts and circumstances: You are an incorporated association. Previous advice from the Australian Taxation Office: • We have previously advised you that you were exempt from liability to pay fringe benefits tax under section 55 of the FBTAA. • You have advised us in your application for a private ruling that there are no material changes since the previous private ruling was issued.

Relevant legislative provisions: Fringe Benefits Tax Assessment Act 1986 section 55 | International Organisations (Privileges and Immunities) Act 1963

Reasons for decision: Summary: Yes, benefits provided by you to your employees are exempt benefits. Section 55 of the FBTAA states: A benefit provided in respect of the employment of an employee of an employer is an exempt benefit if: (b) the employer is an organisation that, but for subsections 66(2) and (3), would be exempt from a liability to pay tax in respect of the benefit by virtue of the operation of the International Organisations (Privileges and Immunities) Act 1963; or (b) the employer is an organisation established by an agreement to which Australia is a party and which obliges Australia to grant the employer an exemption from a liability to pay tax in respect of the benefit. In relation to section 55(a) of the FBTAA, regulations provide that the organisation is an international organisation to which the International Organisations (Privileges and immunities) Act 1963 (IOPI Act) applies. The regulations provide that your organisation has certain privileges and immunities as specified in the First Schedule of the IOPI Act. In particular, paragraph 7 of the First Schedule of the IOPI Act exempts the organisation from the liability to pay or collect taxes other than the duties on the importation or exportation of goods and of the income, property, assets and transactions of the organisation from such taxes. It is considered that you are an organisation covered by the IOPI Act. Therefore, where the employer provides benefits to its employees, the benefits will be exempt benefits under section 55(a) of the FBTAA.

Question: Are benefits provided by you to your employees exempt, pursuant to Section 55 of the FBTAA 1986?