Salary sacrificing is also known as salary packaging or total remuneration packaging. Effective from 1 April 2017, a single annual cap limit of $2,650 ($5,000 'grossed-up') will apply to Meal Entertainment and Venue Hire benefits. Make sure you have the information for the right year before making decisions based on that information. 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. Alternatively, this request can also be made via the Beyond Bank app. A salary sacrifice arrangement reduces your taxable income, meaning you may pay less tax on your income. . Meal Entertainment allowance - Cap of $2,650. The benefits replace what you would otherwise receive as salary. With our restaurants and local eateries mostly open for business again we have been advised by the ATO that as of 1 April 2021, takeaway and home delivered meals can will no longer be claimed as allowed when using Meal Entertainment. any receipt marked takeaway, drive through, carry out, will not be accepted. Examples of expenses that are likely to be meal entertainment, 3. You should seek financial advice before entering a salary sacrifice arrangement. 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. Salary+car (withoutemployee contributions), 3. SalaryPackagingPLUS is proud to partner with Beyond Bank to provide our customers with Visa debit cards for general living and meal entertainment expenses. This is clearly marked. This cap is separate to the $17,000 'grossed up' Salary Packaging cap. Is the Meal Entertainment benefit included in my everyday expenses tax-free cap? We are a small not-for-profit and I would like to set up salary packaging including the meal/entertainment/holiday allowance of . Existing members can add a card by logging inhere. Over 60% of Australian health, charity and PBI employees are salary packaging. It does not cover take-away meals or eating out on your own. This cap is separate to the $17,000 grossed up salary packaging cap. NSW Health may request further information from the employee where the information provided together with the statement is not adequate. Mortgage, rent, car and credit card expenses are just some of the things you can use to minimise your tax. Overseas transactions incur a 2.99% foreign exchange fee. The amount your employer reports is known as your reportable fringe benefits amount (RFBA). Purchases of food and drink (including alcohol) for a party held at home. This is the end of the salary packaging year. We don't provide advice on entering or rejecting a salary sacrifice arrangement. from ATMs, or when making EFTPOS transactions. SalaryPackagingPLUS is one of Australias leading providers of salary packaging services to public health, charity/not-for-profit, rebatable and government organisations. Your employer must still pay your full super guarantee entitlements as though there was no salary sacrifice. 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. We take the guesswork out of salary packaging. The MEC can only be used to pay for qualifying meal entertainment expenses as explained in the following. Your contract of employment should detail your remuneration, including any salary sacrifice arrangement. You can save on groceries, bills, clothing, and just about anything else. If you have provided meal entertainment or entertainment facility leasing expense benefits under a salary packaging arrangement for the year ending on 31 March 2021, complete steps 1-12. Overseas meal purchase if receipt is in English. For example, you include expenditure on: If you choose to use one of the meal entertainment valuation methods: You cannot use these methods if the entertainment is provided under a salary packaging arrangement. payment of your expenses for loan repayments, school fees and childcare costs. This new limit is a combined cap across both benefits applicable each Fringe Benefits Tax (FBT) year (from 1 April to 31 March the following year) What does 'grossed-up' value mean? Salary Packaging and Meal Entertainment Card | Smartsalary Use your card to buy almost anything including groceries and clothes, or to pay for your bills. 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. 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). . claims total at least $500. Read the PDS for more information. To work out the fringe benefits tax (FBT) on entertainment-related benefits you've provided, you first need to know the taxable value of the benefits. SalaryPackagingPLUS is one of Australias leading providers of salary packaging services to public health, charity/not-for-profit, rebatable and government organisations. 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. If entertainment doesn't include recreation, you can classify it as 'meal entertainment' and use one of the following methods to estimate the taxable value of food, drink and any associated accommodation or travel: Both of these methods are based on your expenditure on all meal entertainment for all people during the FBT year. Credit guide for Maxxia Pty Ltd (as credit representative of Onboard) available here. i.e. You can then add a card from My Salary Package. Not For Profit Salary Packaging | Smartsalary Drink only including purchases for consumption at BYO restaurant. Light meals such as morning tea are less likely to be meal entertainment as opposed to more elaborate meals. Home delivery and takeaway meal purchases can be included as valid forms of Meal Entertainment during the 2020-21 FBT Year (1 April 2020-31 March 2021).Usually, only dine-in options are available, but this has been relaxed as a result of restrictions in place due to COVID-19.