Non-Profit News Service No. 0438 - Caps introduced for FBT salary sacrificed meal entertainment benefits and entertainment facility leasing expenses

Changes are being introduced to the concessional treatment of meal entertainment and entertainment facility leasing benefits (meal entertainment benefits) for employees to improve integrity in the taxation system.

From 1 April 2016, all salary packaged meal entertainment benefits:

  • are subject to a separate single grossed up cap of $5,000
  • that exceed the $5,000 grossed-up cap will count towards an existing FBT exemption or rebate cap
  • will be reportable and must be included on a payment summary where the reporting threshold is exceeded; and cannot have their taxable value calculated using the elective valuation rules.

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    Last modified: 03 Feb 2016QC 47900