Changes to salary sacrificed “meal entertainment” benefits
Changes will apply from 1 April 2016 for non-for-profit employees who salary sacrifice “meal entertainment” and “entertainment facility leasing expenses”.
The new law limits the amount that employees can salary sacrifice by introducing a single grossed-up cap of $5,000.
Until 31st March 2016, employees of eligible not-for-profit organisations were entitled to salary sacrifice meal entertainment benefits with no FBT payable by the employer and without it being reported. Employees of rebatable not-for-profit organisations can also salary sacrifice meal entertainment benefits, but such employers only receive a partial FBT rebate. If an employee has not scaled back their meal entertainment expenditure since April 2016, speak to your employer immediately.