Limits for FBT entertainment benefits
13 January 2016
From 1 April 2016, there will be limits on the use of fringe benefits tax (FBT) salary packaged meal entertainment and entertainment facility leasing expenses (meal and other entertainment benefits). These limits aim to improve fairness in the tax system.
All salary packaged meal and other entertainment benefits will be subject to a separate single grossed-up cap of $5,000. The elective valuation rules can't be used to calculate the taxable value of these benefits.
Benefits exceeding the $5,000 grossed-up cap will count towards an employee's existing FBT exemption or rebate cap.
All salary packaged meal and other entertainment benefits will be reported on an employee's payment summary if their reporting threshold is exceeded.
You should consider how these changes may affect any of your clients receiving or providing salary packaged meal or other entertainment benefits.