Emil Ford Lawyers

Limiting FBT Concessions on Salary Sacrificed Entertainment Benefits

The 2015 federal budget placed a cap on the ‘meal entertainment’ benefits (including holidays, cruises, weddings, and meals and alcohol in restaurants) available for salary packaging to charity and not-for-profit sector workers. These benefits are to be subject to a new reportable grossed-up exemption cap of $5,000 from 1 April 2016.

A consultation paper outlining the federal Treasury’s draft legislation proposing the introduction of the cap has been made available for comments.

An extract from the consultation paper:

“The measure will introduce a separate single grossed-up cap of $5,000 for salary packaged meal entertainment and entertainment facility leasing expenses (entertainment benefits) for employees of public benevolent institutions, health promotion charities and employees of public and not-for-profit hospitals and public ambulance services. Currently these employees can salary package entertainment benefits with no FBT payable by the employer and without the benefits being reported.

All salary packaged entertainment benefits will also become reportable fringe benefits.”

If you would like to make a submission you must do so by Friday 21 August 2015


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