Private ruling: Religious Practitioners and exempt benefits
Date of advice: 28 September 2017
Published: February 2018
Ruling period: Year ended 31 March 2018 | Year ended 31 March 2019 | Year ended 31 March 2020 | Year ended 31 March 2021 | Year ended 31 March 2022
Date scheme commenced: 1 April 2010

Ruling: Q1: Are the benefits provided to the employees exempt benefits under section 57 of the Fringe Benefits Tax Assessment Act 1986 (FBTAA)? | A1: Yes

Relevant facts and circumstances: You are registered under the Australian Charities and Not-for-profits Commission Act 2012 (ACNC Act) as the subtype of an entity mentioned in column 2 of item 4 of the table in subsection 25-5(5) of the ACNC Act. You have previously received a private ruling in relation to the application of section 57 to the employees. The facts of the situation have not changed since that ruling issued.

Relevant legislative provisions: Fringe Benefits Tax Assessment Act 1986 section 57. | Fringe Benefits Tax Assessment Act 1986 subsection 136(1) | Australian Charities and Not-for-profits Commission Act 2012

Reasons for decision: Summary: Section 57 of the FBTAA states the following: Where: (a) the employer of an employee is a registered religious institution; and (b) the employee is a religious practitioner; and (c) a benefit is provided to, or to a spouse or a child of, the employee; and (d) the benefit is not provided principally in respect of duties of the employee other than: (i) any pastoral duties; or (ii) any other duties or activities that are directly related to the practice, study, teaching or propagation of religious beliefs; the benefit is an exempt benefit. | Detailed Reasoning - (a) Is the employer of the employee a registered religious institution?: The term ‘registered religious institution’ is defined in subsection 136(1) of the FBTAA to mean an institution that is: ● a registered charity; and ● registered under the Australian Charities and Not-for-profits Commission Act 2012 as the subtype of entity mentioned in column 2 of item 4 of the table in subsection 25-5(5) of that Act. You are registered under the Australian Charities and Not-for-profits Commission Act 2012 (ACNC Act) as the relevant type of entity. Therefore, this requirement is met. | Detailed Reasoning - (b) Is the employee a religious practitioner?: The previous private ruling accepted the employees are religious practitioners for the purposes of section 57 of the FBTAA. As the facts have not changed since that ruling issued, it is accepted that this requirement is met. | Detailed Reasoning - (c) Is the benefit provided to the employee, or the spouse or child of the employee?: The benefit will be provided to the employee, or the spouse or child of the employee. | Detailed Reasoning - ii. any other duties or activities that are directly related to the practice, study, teaching or propagation of religious beliefs?: Pastoral and other duties are discussed in paragraphs 20 to 29 of Taxation Ruling TR 92/17 Income tax and fringe benefits tax: exemptions for ‘religious institutions’ . In considering these requirements, the previous ruling accepted this requirement was met. As the facts have not changed since that ruling issued, it is accepted this requirement is met. Therefore, as all the requirements of section 57 of the FBTAA are met, the benefits provided to the School Chaplains will be exempt under section 57 of the FBTAA.