Add Card Benefits of our Cards Paperless. Meal entertainment expenses are expenses representing provision of: (a) entertainment by way of food and drink or (b) accommodation or travel in connection with, or for the purpose of facilitating entertainment by way of food and drink. Therefore the taxable value of the benefit is 25% of the amount reimbursed to Mary. Save. A salary sacrifice arrangement is also referred to as salary packaging or total remuneration packaging. Salary package up to $2,650 of meal entertainment expenses and you could save hundreds of dollars each Fringe Benefits Tax (FBT) year (1 April - 31 March). Salary packaging your next restaurant or caf meal is easy by using the Smartsalary Salary Packaging and Meal Entertainment card. The 50:50 split method the taxable value is 50% of your total expenditure on all meal entertainment for all people (irrespective of whether they're employees, clients or others) during the FBT year. Mastercard and the Mastercard brand mark are registered trademarks, and the circles design is a trademark of Mastercard International Incorporated . Its a great way to enjoy additional tax savings, stretch your pay packet further and start enjoying life more. Maxxia collects your personal information from you when you apply for a product and request any information from us, and we may use this information to contact you about our products, services and offerings. Author: stu_at_advocacy (Newbie) 23 Feb 2023. . In cases of doubt an employee needs to consider: (a) Why is the food or drink being provided? SalaryPackagingPLUS - FAQs Admission cost to theatres, movies, sporting or cultural events. Credit card stub receipt only or receipt that is not itemised/does not show business name and ABN. Eligible expenses are packaged and paid to you as tax-free salary, reducing your tax bill and potentially increasing your take home pay by thousands each year. Salary Sacrifice - meals & entertainment | ATO Community Beyond Banks community focus aligns perfectly with our dedicated customer service and value commitments throughout metropolitan and regional Australia. The Fair Work CommissionExternal Link regulates employment agreements and conditions. Depending on your employer a range of personal expenses can be salary packaged including rent, mortgage, credit card payments, meals and relocation. Save even more money by salary packaging your vehicle finance and running costs with a novated lease. Reportable fringe benefits for employees - Australian Taxation Office Discover salary packaging - Community Business Bureau Theyre the principles that guide how we create our teams, choose our leaders and build a company thats the right fit for everybody. This cap is separate to the $17,000 grossed up salary packaging cap. This includes meals ordered through delivery platforms such as Deliveroo, Menulog and Uber Eats. cups, napkins and plates, otherwise, functions must be held within 14 days of food and drinks purchase, at least one guest must not reside at the address where the function is being held i.e. The dine-in meal must be for two or more persons. Such a review will be over and above the 20 referred to in Item 1 above (The Director of Internal Audit is to assess the timing and duration of ongoing reviews). Salary package up to $2,650 of meal entertainment expenses and you could save hundreds of dollars each Fringe Benefits Tax (FBT) year (1 April - 31 March).1, Dining at a restaurant, caf, club, pub or fast food restaurant with your family or friends, Hiring professional caterers to prepare and serve food and drinks for a party.2, Attending a ball, gala event or charity dinner. We are committed to providing you with accurate, consistent and clear information to help you understand your rights and entitlements and meet your obligations. For example: If you have a $2,650 meal entertainment limit and you have a balance of $1,000 on the card when the FBT year rolls over, you can only package $1,650 onto your . If you follow our information and it turns out to be incorrect, or it is misleading and you make a mistake as a result, we will take that into account when determining what action, if any, we should take. The availability of benefits is determined by your employer. Can a not-for-profit set up their own meal entertainment salary package Covid-19 Entertainment Salary Packaging Changes FBTY22 - ATO Community for birthday party on such and such date). 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? Mortgage, rent, car and credit card expenses are just some of the things you can use to minimise your tax. Overseas meal purchase if receipt is in English. PDF Salary Packaging - Meal Entertainment Guidelines Under a salary sacrifice arrangement, you should pay less tax than you would have without an arrangement. the 50:50 split method - the taxable value is 50% of your total expenditure on entertainment facility leasing expenses for all people, whether they're employees, clients or others, during the FBT year. The contract is usually in writing but may be verbal. Exempt entertainment benefits for businessEntertainment may be exempt from FBT if it is a minor benefit, taxi travel, or food and drink on your premises. For new GO Salary members, apply now toget your salary packagingstarted in minutes. Items that are not food or drink do not qualify in any circumstances unless the items are travel or accommodation for the purpose of facilitating entertainment by way of food or drink. Dining at a restaurant, caf, pub, club, or fast food restaurant, Hiring professional caterers to prepare and serve food and drink, Attending a ball, gala event or charity dinner, Taxi fares to and from the restaurant or event, Alcoholic drinks that are not purchased in conjunction with a meal, Meals purchased by someone other than yourself or your spouse, Taxi fares that are not related to the specific meal or event claimed, The AccessPay Salary Packaging and Meal Entertainment Card is a prepaid, reloadable Mastercard issued by EML Payment Solutions Limited ABN 30 131 436 532 AFSL 404131. In order for food or drink to qualify as meal entertainment, there must be some element of entertainment present. Employees will need to provide hand written annotations on any items appearing on the statement that are not obviously meal entertainment from the entry appearing on the statement (eg items purchased from a hardware store, supermarket). Use your card to purchase meals at bistros, cafes, hotels, and restaurants. Purchases of food and drink (including alcohol) for a party held at home. This material is general information only. You can't access the salary amount you sacrifice for the period of your arrangement. If the arrangement doesn't meet the requirements of an effective salary sacrifice arrangement, you pay tax on the benefits as assessable (or taxable) income at the time you receive the benefit. Catered functions (e.g. Let's tackle the tax-free thing first up. periodical payments or direct debits cannot be set up on the card. 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. With the Meal Entertainment benefit, you could save hundreds of dollars each year.