taxi fares or an overnight stay are also an allowable part of this benefit and there is no limit to the number claims you can make. Food provided in a social setting, e.g. Mary pays, and is reimbursed for, the full cost of the meals. Overseas meal purchase if receipt is in English. Yes, you can package up to $2,650 each FBT year, but the Meal Entertainment cap is in addition to the existing salary packaging cap limit for everyday living expenses (for example, mortgage or rent). If you follow our information and it turns out to be incorrect, or it is misleading and you make a mistake as a result, we will take that into account when determining what action, if any, we should take. The following conditions apply to all meal entertainment activities: In addition to the general conditions, the following must be met to claim your personal, personally/professionally catered meal entertainment: In addition to the general conditions, the following apply to self-catered events: In addition to the general conditions, the following apply to Meal Entertainment Cards: Meal entertainment claims can be made with original tax invoices dated on or after 1 July 2002 or from an employees commencement date, whichever is later. How to work out FBT on entertainmentUse these steps to work out the FBT on food, drink and recreation you provide to employees. Create your myGov account and link it to the ATO, Help and support to lodge your tax return, Residential rental properties and holiday homes, Instalment notices for GST and PAYG instalments, Your obligations to workers and independent contractors, Encouraging NFP participation in the tax system, Australian Charities and Not-for-profits Commission, Departing Australia Superannuation Payment, Small Business Superannuation Clearing House, Annual report and other reporting to Parliament, Complying with procurement policy and legislation, Pay as you go withholding for not-for-profits, Super guarantee requirements for not-for-profits, Fringe benefits tax for not-for-profit employers, Salary sacrifice arrangements and not-for-profits, Employment termination payments for not-for-profits, Claiming GST credits on purchases for volunteers, Claiming GST credits on reimbursements to volunteers, Salary sacrifice arrangements for employees, Workplace giving and salary sacrifice arrangements, Aboriginal and Torres Strait Islander people, agrees to permanently forego part of their future entitlement to salary or wages, receives benefits of a similar cost (to the employer) in return. Use the actual value or meal entertainment methods to work out the taxable value of entertainment-related benefits. Find out what salary sacrificing is, how to set up an effective arrangement and the tax implications of an arrangement. In order for food or drink to qualify as meal entertainment, there must be some element of entertainment present. It is common in many NFP sectors (e.g. Yes, you can package up to $2,650 each FBT year, but the Meal Entertainment cap is in addition to the existing salary packaging cap limit for everyday living expenses (for example, mortgage or rent). An effective salary sacrifice arrangement will detail the amount of salary or wage income to be sacrificed. This includes meals ordered through delivery platforms such as Deliveroo, Menulog and Uber Eats. For example, food or drink provided for the purpose of refreshment would not generally be meal entertainment, whereas food or drink provided at a social function for enjoyment would be meal entertainment. And, the great news is, working within the not-for-profit industry means you may be eligible to salary package and save on a huge range of everyday expenses. Simply tell us how much pre-tax salary you want to spend on meals each pay period and well regularly transfer that amount straight to your Salary Packaging and Meal Entertainment card, you simply pay as you go. Link to download MySalPack app user guide, More information about our partnership with Beyond Bank Australia, Book a salary packaging phone consultation. We actively promote the employment of Aboriginal and Torres Straight Islanders, people with disability, those identifying as LGBTIQ+, and people from diverse cultural backgrounds so we can connect with our customers and the communities we serve. you don't need to notify us your business records are sufficient evidence of your choice. This means you pay less tax on your income. This cap is separate to the $17,000 'grossed up' Salary Packaging cap. Travel and accommodation costs where the purpose of the travel was for meal entertainment. There is no restriction on the types of benefits you can include in a salary sacrifice arrangement. Not For Profit Salary Packaging | Smartsalary minor entertainment less than $300 (incl. We don't provide advice on entering or rejecting a salary sacrifice arrangement. Examples of expenses that are likely to be meal entertainment, 3. You will not be able to claim a tax deduction for an expense your employer pays for as part of your salary package. Theres no need to submit claims or receipts just present your card to pay the bill and it will automatically be deducted from your entertainment account its as simple as that! e.g. The GST-exclusive value of the car expenses is $10,509. This exemption only applies to meal entertainment and not to recreation. You and your employer agree for you to receive less income before tax and in return your employer pays for certain benefits of similar value for you. Alternatively you may upload your receipts and claim your expenses through your AccessPay account and we will repay you from your salary packaging funds. Meal entertainment allows staff to pay less tax by claiming meals and drinks consumed in a restaurant/caf or provided at a social gathering. If you aren't packaging an ongoing expense like mortgage or rent, the easiest way to salary package your living expenses is by using our ATO-approved Smartsalary Everyday Purchase card. PDF Salary Packaging - Meal Entertainment Guidelines Please consider if this product is right for you. Alcoholic drinks that are not purchased in conjunction with a meal. a maximum of 12 functions per FBT year (April 1 March 31) can be claimed, tax invoices/receipts for food and/or drink cannot include any other grocery items e.g. No, takeaway with Meal Entertainment is not available. Employees will need to provide hand written annotations on any items appearing on the statement that are not obviously meal entertainment from the entry appearing on the statement (eg items purchased from a hardware store, supermarket). Holidays or any other recreational activities do not meet the criteria of in connection with and are not allowed. SalaryPackagingPLUS is proud to partner with Beyond Bank to provide our customers with Visa debit cards for general living and meal entertainment expenses. You and your employer agree for you to receive less income before tax and in return your employer pays for certain benefits of similar value for you. You can read the PDS here. Entertainment in this sense does not refer to a performance or the like, but more generally to some gathering of people to carry out some activity with a view to enjoying themselves. NSW Health may request further information from the employee where the information provided together with the statement is not adequate. Calculating the taxable value of entertainment-related benefits Use the actual value or meal entertainment methods to work out the taxable value of entertainment-related benefits. Over 60% of Australian health, charity and PBI employees are salary packaging. Salary packaging or salary sacrifice is a mutual arrangement between you and your employer, where it is pre-decided that you will pay for some services or items directly from your pre-tax salary. Eziway News | Eziway Salary Packaging Takeaway meals now included in NFP salary packaging Your employer must still pay your full super guarantee entitlements as though there was no salary sacrifice. Add Card Benefits of our Cards Paperless. Expenses paid with direct debits from your pay are not salary sacrificed. An employee can of course pay for such expenses with their credit card, if they have salary packaged a credit card utilising the $17,000 FBT free cap. Pre-purchased restaurant vouchers. Travel/accommodation costs for local or overseas holidays for recreation purposes. It does not take into account your particular/personal objectives, personal financial situation or personal financial circumstances. Example: Salary sacrifice of a motor vehicle. If the entertainment does not include recreation, you can choose to use meal entertainment valuation rules to work out the taxable value. The result is that you pay less income tax and increase your take-home pay. You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products). The easiest way to salary package your Meal Entertainment expenses is to use your Maxxia Wallet card. Download MySalPack app for existing customers. Salary sacrificing is also known as salary packaging or total remuneration packaging. Salary Packaging & Payroll. Dining at a restaurant, caf, pub, club, or fast food restaurant, Hiring professional caterers to prepare and serve food and drink, Attending a ball, gala event or charity dinner, Taxi fares to and from the restaurant or event, Alcoholic drinks that are not purchased in conjunction with a meal, Meals purchased by someone other than yourself or your spouse, Taxi fares that are not related to the specific meal or event claimed, The AccessPay Salary Packaging and Meal Entertainment Card is a prepaid, reloadable Mastercard issued by EML Payment Solutions Limited ABN 30 131 436 532 AFSL 404131. Maxxia Pty Ltd (Maxxia) ABN 39 082 449 036 is an Authorised Representative of EML Payment Solutions Limited Australian Financial Services Authorised Representative number 000278683 and participates in the promotion and distribution of the Card. Travel and accommodation costs where the purpose of the travel was for more than meal entertainment. Important information:This is general information only. ATO Community / Tax & Super for Business / Managing Employees / Contractors; Can a not-for-profit set up their own meal entertainment salary package card for staff. When is food, drink and recreation considered entertainment? For example, an employee who commenced on 1 July 2015 may claim from this date. Light meals such as morning tea are less likely to be meal entertainment as opposed to more elaborate meals. Please call Beyond Bank on13 25 85immediately. Please consider if this product is right for you. 532668. In these circumstances the annotation needs to identify the particular meal entertainment event connected with the travel and/or accommodation expenses charged to the MEC. its not applicable if only household members are attending. the taxable value of the car fringe benefit will be $7,000(which is the cost of the car multiplied by the statutory rate, in this case$35,0000.20) and, $17,353if no employee contributions are made. You can then select your cards and amounts when adding expenses to your salary package fromMy Salary Package. Last modified: 12 Jan 2023 QC 71135 Some of the information on this website applies to a specific financial year. Salary sacrificing is also known as salary packaging or total remuneration packaging. GO Salary has partnered with Beyond Bank, a member owned community bank and a leading provider of card solutions. The ATO advises that as an employee of a Public Benevolent Institution (PBI) or health promotion charity . The purpose of this statement is to provide guidelines on the authorised use of the Meal Entertainment Card (MEC) and to communicate to employees the audit procedure and sanctions that will apply if the MEC is used by an employee to pay for unauthorised expenses. Eligibility for the Holiday Accommodation and Venue Hire benefit is dependent on your industry and employer. Australian Taxation Office for the Commonwealth of Australia. The amount your employer reports is known as your reportable fringe benefits amount (RFBA). Regulated leasing and related services are provided by Onboard Finance Pty Ltd ABN 18 645 542 776, Australian Credit Licence no. The Smartsalary Salary Packaging and Meal Entertainment Card is a prepaid, reloadable Mastercard issued by EML Payment Solutions Limited ABN 30 131 436 532 AFSL 404131. Here are some examples of the potential tax saving structures: Public Benevolent Institution Public Hospital $18,200 Annual Tax-Free Threshold $18,200 $2,649 Meal Entertainment Cap $2,649 $15,900 ($30,000 Cap) Annual Cap $9,010 ($17,000 Cap) $36,749 Tax free Salary $29,859 from ATMs, or when making EFTPOS transactions. Use your card to buy almost anything including groceries and clothes, or to pay for your bills. GO Salary offers a Salary Packaging card for everyday household expenses, and a Meal Entertainment card for dining and holiday accommodation. Australian Taxation Office for the Commonwealth of Australia. In cases of doubt an employee needs to consider: (a) Why is the food or drink being provided? Over 60% of Australian health, charity and PBI employees are salary packaging. The meals and drinks (including those of guests with the eligible employee) do not have to be related to employment with NSW Health. 484063) to provide credit assistance to you. travel to city and overnight stay to see a show and have a special dinner. Available benefits | Advantage - Salary Paywise Salary Packaging with Apple Pay. FBT and entertainment for not-for-profit and government organisationsTax-exempt body entertainment fringe benefits, exemptions and common scenarios for not-for-profits and government. Use your card to purchase meals at bistros, cafes, hotels, and restaurants. Items that are not food or drink do not qualify in any circumstances unless the items are travel or accommodation for the purpose of facilitating entertainment by way of food or drink. 1 Theres a cap across Meal and Entertainment, Holiday Accommodation and Venue Hire benefits of $2,650 per FBT year (1 April 31 March). Can I use Meal Entertainment for take-away, home delivery etc.? Your not-for-profit organisation may decide to enter into salary sacrifice arrangements with its employees. Strict adherence to this policy and procedure statement is a condition of use of the MEC and is required to ensure that the MEC complies with Australian Taxation Office rules. Employees should note that on application for an MEC they are declaring that the MEC will only be used for meal entertainment expenses. Such a review will be over and above the 20 referred to in Item 1 above (The Director of Internal Audit is to assess the timing and duration of ongoing reviews). Salary+car (withoutemployee contributions), 3. Salary packaging is an ATO approved method of using concessions available to your employer to reduce the tax you pay. The availability of benefits is determined by your employer. Download MySalPack app for existing customers. Holiday or cruise where fare includes all meals. If you follow our information and it turns out to be incorrect, or it is misleading and you make a mistake as a result, we will take that into account when determining what action, if any, we should take.