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Change to salary sacrifice

 

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.

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