The ATO has published draft taxation determination TD 2014/D17 Fringe benefits tax: when are the duties of the employment of an employee of a government body exclusively performed in, or in connection with, a public hospital or ‘non-profit hospital’ for the purposes of the Fringe Benefits Tax Assessment Act 1986, for comment.

The TD explains the circumstances in which an employer can access the FBT exemption in subsection 57A(2) of Fringe Benefits Tax Assessment Act 1986 for employees of government bodies who work in, or in connection with, a public or non-profit hospital.

The draft determination explains that the employee’s duties must satisfy one of two tests:

  1. the duties are exclusively performed ‘in’ a hospital, which means that the employee is working within a hospital facility at a place where the hospital activities are conducted, or
  2. the duties are exclusively performed ‘in connection’ with a hospital, which means the employee is performing hospital related duties, irrespective of the physical location.

Comment must be made to the ATO by 28 November 2014.  For further details please see https://www.ato.gov.au/Non-profit/Non-profit-News-Service/In-detail/Articles–2014-15/Non-Profit-News-Service-No–0415/