Jan 22 2016
Changes to Meals & Entertainment for the new FBT Year (2016/2017)
Over the last few months we have kept you in the loop regarding the changes to Meals & Entertainment and Venue & Accommodation benefits.
To ensure that you are across these changes, we will re-visit some of the information already provided and explain what you need to do moving forward, prior to the new FBT year which begins on 1 April 2016.
This is what you already know!
- The benefit will be capped at $2,550 per FBT year
- Meals & Entertainment and Venue & Accommodation benefits will now be treated as a combined benefit from 1 April 2016 and it will be named ‘Entertainment Benefit’
- If you have a NAB Meals & Entertainment Card and an ‘Entertainment Benefit’, they will be treated as 2 separate benefits however the combined cap will remain at $2,550 per FBT year
- From 1 April, your ‘NAB Meals & Entertainment Card Benefits’ and ‘Entertainment Benefits’ will be reportable. This means that the dollar value paid toward these benefits in an FBT year will be reported on your PAYG summary and may affect your obligations including HECS, Child Care Payments etc. The ATO website has more detailed information and you can located it via www.ato.gov.au/General/Fringe-benefits-tax-(FBT)
- The cut-off date for submission of claims for this year is 20 March 2016. We cannot guarantee that any receipts for claims received post this date will be processed and hence they will not be counted towards your salary packaging limit in the current FBT year.
- The cut-off date for expenditure on your NAB Meals & Entertainment card is 10.00pm (AEST) on 31 March 2016. Your card will then be suspended temporarily until approximately 6.00am (AEST) on 4 April 2016, due to system and banking configuration.
- Any balance remaining on your NAB card as at 10.00pm (AEST) on 31 March 2016, will be returned to your payroll department, meaning that you will not have maximised your tax savings on that particular portion of your benefit.
- If you are currently packaging an amount greater than $2,550.00 in this current FBT year, Remunerator will automatically reduce this to a maximum of $2,550.00 when creating your new package for the new 2016/2017 FBT year.
Please refer to our previous article in this month’s newsletter titled ‘End of FBT Year – Here’s What You Need To Know!’ which outlines further instructions.