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Workplace bushfire donations: What are the FBT implications?

Workplace bushfire donations: FBT implications

Discover how businesses are facilitating contributions on behalf of their employees.

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Hayley Lock

Partner, People Services

KPMG Australia

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As the devastating bushfires have spread through our eastern and southern states, many Australians have responded with significant generosity, and Australian businesses have been no exception.

While many businesses have pledged sizable donations directly to charities, funds and government organisations, a number of our clients have reached out to confirm the various employment tax outcomes of giving time, money or other support to impacted employees or organisations.

The Australian Taxation Office (ATO) has published guidance on fundraising mechanisms and stresses the importance of ensuring that recipient organisations currently hold deductible gift recipient (DGR) status. DGRs have the ability to receive tax-deductible donations, whether it be from individual employees or employers. While most charities hold DGR status, donations made to non-DGR organisations may result in unexpected tax outcomes which should be known prior to contribution.

We have outlined below the common ways our clients have facilitated contributions on behalf of their employees and the associate fringe benefits tax implications:

  • Workplace giving
  • Salary sacrifice arrangements
  • Bucket collections
  • Emergency assistance

To read more about each of these, please log in to KPMG Tax Now.

© 2020 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved. Liability limited by a scheme approved under Professional Standards Legislation.

KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

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