Private ruling: Fringe benefits tax
Date of advice: 13 November 2017
Published: April 2018
Ruling period: Year ended 31 March 2018 | Year ended 31 March 2019 | Year ended 31 March 2020 | Year ended 31 March 2021
Date scheme commenced: 2017

Ruling: Q1: Is the employee a religious practitioner for the purposes of section 57 of the Fringe Benefits Tax Assessment Act 1986 ? | A1: Yes

Relevant facts and circumstances: You are a registered with the Australian Charities and Not-for-profits Commission (ACNC), as a charity with the purpose of religion. You have provided details about your leadership structure. Your employee is a member of the organisation and has been ordained as an elder. You have provided details of the role of elders. Your employee has completed the same level of theological training as an ordained minister but is not ordained as a minister. You have provided details of your employee’s duties and responsibilities.

Relevant legislative provisions: Fringe Benefits Tax Assessment Act 1986 section 57 | Fringe Benefits Tax Assessment Act 1986 subsection 136(1) and | Income Tax Assessment Act 1997 subsection 995-1(1).

Reasons for decision: Summary: All references made in these reasons for decision are to the Fringe Benefits Tax Assessment Act 1986 unless otherwise stated. Your employee is a religious practitioner for the purposes of section 57. | Detailed Reasoning - Detailed reasoning: Subsection 136(1) defines a religious practitioner to have the meaning given by subsection 995-1(1) of the Income Tax Assessment Act 1997 (ITAA 1997). Subsection 995-1(1) of the ITAA 1997 defines a religious practitioner as: means: (a) a minister of religion; or (b a student at an institution who is undertaking a course of instruction in the duties of a minister of religion; or (c) a full-time member of a religious order; or (d) a student at a college conducted solely for training persons to become members of religious orders The term ‘minister of religion’ is not defined in the Fringe Benefits Tax Assessment Act 1986 . Paragraph 13 of Taxation Ruling TR 92/17 Income tax and fringe benefits tax: exemptions for ‘religious institutions’ , states the following: 13. In determining whether a person is a minister of religion, many, if not all, of the following characteristics should be present: (a) the person is a member of a religious institution; (b) the person is recognised officially by ordination or other admission or commissioning, or, where the particular religion does not require a minister to be formally ordained, the person is authorised to carry out the duties of a minister based on a specified level of theological or other relevant training or experience; (c) the person is recognised officially as having authority in matters of doctrine or religious practice; (d) the person's position is distinct from that of the ordinary adherents of the religion; (e) the person has acknowledged leadership in the spiritual affairs of the religious institution; (f) the person is authorised to discharge the duties of a minister or spiritual leader, including the conduct of religious worship and other religious ceremonies. We have considered each of these characteristics in relation to your employee’s situation. Many of the characteristics of a minister of religion are evident in your employee’s situation therefore your employee is considered to be a minister of religion. As such your employee is a religious practitioner for the purposes of section 57.