A number of salary packaging changes announced in last years’ Federal Budget will become effective from 1 April 2016. These changes impact the following benefits:
- Salary packaging of meal entertainment (dining)
- Holiday accommodation (‘venue hire’) claims.
To ensure you understand the implications of these important changes, we’ve prepared a summary of the changes and their impacts.
From 1 April 2016, Meal Entertainment (Dining) and Holiday Accommodation (‘Venue Hire’) expenses will effectively become a single benefit.
What you will see:
- The introduction of a $2550 per year cap, approximately $95 per fortnight limit ($5,000 ‘grossed-up’)
- These benefits will now be added to your Reportable Fringe Benefit amount on your Payment Summary
- Please make sure you take the time to see of these changes impact your entitlements and obligations – HELP debt, Centrelink payments and child support etc.
How will this impact you?
The combined salary packaging of meal entertainment and holiday accommodation will now have an annual salary package value is $2,550 (combined limit)
Key points to remember
If your employer or salary packaging provider offers a Meal Entertainment Card and a Leisure Accommodation Card, it is important that you spend the full balance of these Cards by the end of March 2016 as any outstanding balance will carry over to next year and be deducted from your 2016-17 cap.
Example: If you have a card balance as at 1 April 2016 of $500, this will be deducted from your cap for the following FBT year (e.g. $2,550 – $500 balance = $2,050 limit for the year).
To have your existing holiday accommodation claims salary packaged, a tax invoice must have been issued, they must have been paid for and claimed BEFORE the end of March
Tip: Pre-booking and paying for accommodation today makes sense.
Get your claims in now!
All claims should be lodged as soon as possible.
Get in touch if you need any further advice!
If you wish to obtain further salary packaging advice, FBT Strategy advice or guidance on the management of your motor vehicle fleet, do not hesitate to get in touch via LinkedIn or call me on 1300 836 025.