Remunerator News

Apr 24 2020

Salary Packaging for Not-For-Profit Employers During COVID-19

As part of Remunerator’s Salary Packaging Program, employees are able to salary package meal entertainment expenses up to a maximum capped amount of $2,650 per FBT year in addition to the general expense threshold.

However, with restaurants and public venues currently closed, many employees are left wondering how to spend their meal entertainment cap during the FBT year ending 31 March 2021.

There is some good news from the Australian Tax Office (ATO) in relation to meal entertainment and the COVID-19 restrictions:

“We will not apply any compliance resources to scrutinising expenditure”.

Read the full statement is below:

“Q: I am a not-for-profit employer and I provide salary-packaged meal entertainment to my employees. Can my employees use their exempt (or rebatable) cap during the FBT year ending 31 March 2021 given restaurants and public venues are currently closed due to COVID-19?

A: Whether the provision of meals qualifies as salary-packaged meal entertainment depends on the particular facts and circumstances of the meal and how it is provided. Given the unprecedented circumstances currently existing, for the FBT year ending 31 March 2021, [the ATO] will not apply any compliance resources to scrutinising expenditure under these arrangements provided the meals are provided by a supplier that was authorised as a meal entertainment provider as at 1 March 2020.

[The ATO] also confirm that for the FBT year ending 31 March 2020, they will not apply any compliance resources to scrutinising expenditure under these agreements during the period where restaurants and public venues were closed.”

For more information on the ATO’s response to the impact of COVID-19 on your salary package visit their website here.

Contact us to see how you can include a used, demo or new cars in your salary package on top of your general expenses & meals entertainment

Did you know that as part of Remunerator’s program, we can salary package your new car?

We can save you thousands on your new car while also maximising your take home pay!

Like other exempt benefits, you can pay for your new car and your running costs through your pre-tax income.

Do you want to learn how we can save you thousands on your new car?

Talk to us about your next car on 1800 501 703 or email us on novated@remunerator.com.au