Non-Profit News Service No. 0427 - Public consultation: limiting FBT concessions on salary sacrificed entertainment benefits

On 29 June 2015, the federal Treasury released the consultation paper Limiting fringe benefits tax concessions on salary packaged entertainment benefits. The draft legislation and explanatory material implement the 2015-16 Budget measure and will apply from 1 April 2016.

Extracts from the consultation paper are included below:

"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.

This measure will improve the integrity of the tax system by introducing a limit on the use of these benefits."

The closing date for submissions is Friday 21 August 2015.

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    Last modified: 10 Aug 2015QC 46084