Earlier this month, the ATO published draft taxation ruling 2018/D2 Fringe benefits tax: benefits provided to religious practitioners, replacing previous ruling TR92/17.
The updated ruling confirms that an institution can be a provider of exempt fringe benefits to religious practitioners if it’s registered with the Australian Charities and Not-for-profits Commission (ACNC) with the subtype ‘advancing religion’; considers changes in the nature of contemporary religious practices; and provides examples of scenarios in a contemporary setting.
Speaking to Accountants Daily, Grant Thornton partner, Elizabeth Lucas, said that apart from updated references to the ACNC, the draft ruling is fundamentally the same as the previous ruling, although it does improve “readability” with the additional examples.
CPA Australia head of policy, Paul Drum, said the draft ruling does provide clarity over who is exempt from FBT in a religious institution and who is not, where there might have been uncertainty previously.
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