Salary packaging and FBT
The Australian Institute of Company Director’s Budget Summary reports that:
New FBT rules will impact salary-packaging in this sector from 1 April 2016.
Meal entertainment benefits – which include holidays, cruises and weddings – for employees will be capped at $5,000.
Amounts exceeding the cap will also be counted towards whether an employee exceeds their existing FBT exemption or rebate cap.
All meal entertainment benefits will become reportable.
This measure will save the Government $295 million.
re-printed with the permission of WilliamsonLegal