The ATO is focussing on whether public benevolent institutions (PBIs) endorsed by the Commissioner of Taxation as eligible for an exemption from fringe benefits tax (FBT) are properly claiming the tax.
Benefits provided to employees of the PBI are exempt from FBT (up to a capping threshold).
Jennifer Moltisani of ATO says
We are concerned with arrangements where employees of PBIs are used to undertake charitable or commercial activities of other entities that are not benevolent in nature. These arrangements involve the provision of employment services by the PBI to another entity within the group and typically include a charge-back or labour-hire agreement.
See the February addition of the ATO Not for profit publication
Please contact Lesleigh if you wish to review your current arrangements.