Nov 30 2015
New Meal & Entertainment Law now Passed with effect 1 April 2016
Effective 1 April 2016, Meal & Entertainment and Venue & Accommodation benefits will be capped at $2,550 per FBT year (i.e. $5,000 grossed up cap divided by type 2 gross up rate of 1.9608).
Who is affected?
Employees of the Public Health and Not for Profit sector who currently package Meal & Entertainment and Venue & Accommodation and who are entitled to these benefits will be affected from 1 April 2016.
What you need to do?
These changes are not effective immediately and therefore up until 1 April 2016 you can continue to salary package your Meal & Entertainment and Venue & Accommodation benefits as normal.
We will be advising you shortly as to how Remunerator will be managing these changes come 1 April 2016 and what this means to you.
Are Meal & Entertainment and Venue & Accommodation now combined?
Although Meal & Entertainment and Venue & Accommodation will still be treated as separate benefits, from 1 April 2016, a combined cap of $2,550 will apply. That means that expenditure on both benefits will be combined and counted towards the new cap of $2,550.
Are Meal & Entertainment and Venue & Accommodation benefits now reportable?
From 1 April 2016, your Meal & Entertainment and Venue & Accommodation benefits will be reportable. This could effect some employee obligations it also means that the dollar value that has been paid toward these benefits in an FBT year will be reported on your PAYG summary and may affect obligations including HECS, childcare payments etc.
For further details regarding reportable benefits please go to www.ato.gov.au/General/Fringe-benefits-tax-(FBT)/In-detail/Employees/
What does this mean to your tax free cap benefit?
There are no changes to the tax-free cap benefit as this is a totally separate benefit and you can continue to salary package this as normal in the new FBT year.
Remunerator will continue to update you in the coming months regarding these changes