Document ID: chunk:federal_register_of_legislation:C2025C00120:section:12:p1
Version: federal_register_of_legislation:C2025C00120
Segment Type: section
Provision Reference: s 12 (pt 1/3)
Character Range: 341511–344446

12                  a society, association or club:                                                                                                             See subsection (5) of this section.
                    (a) established for musical purposes; and
                    (b) covered by item 9.2 of the table in section 50‑45 of the Income Tax Assessment Act 1997

Note: Subsection (3) affects the kind of employers that may be considered to be an institution of government.

Rebate for year of tax 2000‑2001 and later years
 (2A) If an employer is a rebatable employer for the year of tax beginning on 1 April 2000 or a later year of tax, the employer is entitled to a rebate of tax in the employer's assessment for the year of tax concerned equal to the amount worked out using the formula:

where:
gross tax means the amount of tax payable on the fringe benefits taxable amount of the employer of the year of tax (assuming that this section had not been enacted).
rebatable days in year means the number of whole days in the year of tax when the employer engaged in activities as an employer covered by any of the table items in subsection (1).
total days in year means the number of days in the year of tax excluding the days on which the employer did not engage in activities as an employer.

How to work out aggregate non‑rebatable amount
 (2B) An employer's aggregate non‑rebatable amount for the year of tax is the amount worked out as follows.

      Method statement
           Step 1. For each employee, add:

                (a) the individual grossed‑up type 1 non‑rebatable amount (see subsection (2C)) in relation to the employer for the year of tax; and
                (b) the individual grossed‑up type 2 non‑rebatable amount (see subsection (2D)) in relation to the employer for the year of tax.

            The result is the individual grossed‑up non‑rebatable amount for the employee.
           Step 2. Reduce the individual grossed‑up non‑rebatable amount for each employee of the employer by $30,000, but not below zero.
           Step 2A. If the amount calculated under step 2 in relation to an employee is positive, reduce that amount (but not below zero) by the lesser of:

                (a) $5,000; and
                (b) so much of the employee's individual grossed‑up non‑rebatable amount as relates to benefits covered by subsection (2J) (about salary packaged meal entertainment and entertainment facility leasing benefits).

           Step 3. Add up the results of step 2A for all the employer's employees.
           Step 4. Multiply the sum from step 3 by the FBT rate. The result is the employer's aggregate non‑rebatable amount for the year of tax.

Individual grossed‑up type 1 non‑rebatable amount
 (2C) For the purposes of step 1 in the method statement in subsection (2B), the individual grossed‑up type 1 non‑rebatable amount of an employee in relation to the employer for the