2015/16 Salary Sacrifice Update

 As you may be aware, the 2015 federal budget has introduced a cap on the exempt FBT benefits available to Public Benevolent Institutions (PBI’s).

Currently employees of a PBI are able to salary sacrifice up to between $14,498 (GST inclusive expenses) and $15,900 (GST exclusive expenses) per annum with no FBT implications, representing the $31,117 grossed-up exemption cap. In addition to this FBT exemption cap, eligible workers can salary sacrifice meal/entertainment and leisure/accommodation benefits with no FBT payable by the employer and without the benefits being reported on the employee’s year-end payment summary.

As part of the 2015 budget reforms, the Government have now introduced a separate single grossed-up cap of $5,000 for salary sacrificed meal/entertainment and leisure/accommodation claimable by workers.

From 1 April 2016, the amount that any employee can spend on meal entertainment and accommodation exempt from FBT will be limited to an annual limit of $2,300 and $2,550 depending on whether the items are subject to GST (i.e. taking the employee to the $5,000 grossed-up cap). Meal entertainment and accommodation benefits exceeding this separate grossed-up cap of $5,000 will be counted in calculating whether an employee exceeds their existing overall FBT exemption cap.

All meal/entertainment and leisure/accommodation benefits will also become reportable on the payment summaries issued to employees at the end of the financial year.

Cristy Houghton

Embarketing, 48 Johnston Street, Wagga Wagga, NSW, 2650

Cristy's unique career has taken her from country NSW to the city lights of Clarendon Street South Melbourne and back again. With an early career in radio as a copywriter and creative strategist, she is now a Jill of all trades as a graphic designer, website builder, blog writer, video editor, social media manager, marketing strategist and more. 

In fact, give her any task and this chick will figure out how to do it! Go on, we dare you!

No, really, we DARE you!!

Cristy has won two Australian Commercial Radio Awards (ACRAs) for Best Ad and Best Sales Promotion, and even has an 'Employee of the Year' certificate with her name on it.

Cristy and her husband James have traveled extensively through Russia, China and South East Asia, and have two fur-babies, Sooty (cat) and Panda (puppy). Cristy loves drinking coffee, meeting people to drink coffee, coffee tasting and coffee flavoured cocktails. She also enjoys road trips, TED Talks and watching cat videos on youtube.