Salary packaging or salary sacrifice is a mutual arrangement between you and your employer, where it is pre-decided that you will pay for some services or items directly from your pre-tax salary. minor entertainment less than $300 (incl. Its a great way to enjoy additional tax savings, stretch your pay packet further and start enjoying life more. Salary packaging for not-for-profit employees is an ATO-approved way of reducing the tax you pay on certain expenses. During this unprecedented time, the ATO has provided an update relating to meal entertainment expenses. Professional catering costs for a private function, e.g. by an associate of your business or organisation, your associate must tell you the value of the benefits by 21April. 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). For example, an employee who commenced on 1 July 2015 may claim from this date. Download theBeyond Bank smartphone app. Depending on your employer a range of personal expenses can be salary packaged including rent, mortgage, credit card payments, meals and relocation. These are not fringe benefits if your employer pays them to a complying super fund. In these circumstances the annotation needs to identify the particular meal entertainment event connected with the travel and/or accommodation expenses charged to the MEC. It does not cover take-away meals or eating out on your own. Example: Salary sacrifice of a motor vehicle. 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. GO Salary offers a Salary Packaging card for everyday household expenses, and a Meal Entertainment card for dining and holiday accommodation. You should seek financial advice before entering into a salary sacrifice arrangement. Salary Packaging & Payroll. You receive some of your salary tax free, so you pay less tax and take home more pay. Access to balances and transaction history 24/7 via internet banking or the Beyond Bank mobile app. Theyre the principles that guide how we create our teams, choose our leaders and build a company thats the right fit for everybody. 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. We actively promote the employment of Aboriginal and Torres Straight Islanders, people with disability, those identifying as LGBTIQ+, and people from diverse cultural backgrounds so we can connect with our customers and the communities we serve. Examples of expenses that are likely to be meal entertainment, 3. The amount your employer reports is known as your reportable fringe benefits amount (RFBA). Your contract of employment should detail your remuneration, including any salary sacrifice arrangement. 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. Common entertainment scenarios for businessExamples of how FBT applies to businesses for Christmas parties, recreation days, seminars and other events. How salary packaging can benefit you You can take home more pay The easier and safer way to Pay. Where an employee breaches these rules but the MEC is not cancelled, their last months statement is to be reviewed in future audits. Dining at a restaurant, caf, club, pub or fast food restaurant with your family or friends 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). Australian Taxation Office for the Commonwealth of Australia. Once you know the taxable value of the benefits, you can calculate, report and pay your FBT. The Target Market Determination for this product can be found here. Existing members can add a card by logging inhere. weddings and birthday parties) may also be paid for using the card. claims total at least $500. GO Salary offers aSalary Packagingcard for everyday household expenses, and aMeal Entertainmentcard for dining and holiday accommodation. Maxxia Pty Ltd | ABN 39 082 449 036 act as an authorised representative on behalf of a number of Australian financial services licensees. The purpose of this statement is to provide guidelines on the authorised use of the Meal Entertainment Card (MEC) and to communicate to employees the audit procedure and sanctions that will apply if the MEC is used by an employee to pay for unauthorised expenses. The contract is usually in writing but may be verbal. Travel and accommodation costs where the purpose of the travel was for more than meal entertainment. SalaryPackagingPLUS is proud to partner with Beyond Bank to provide our customers with Visa debit cards for general living and meal entertainment expenses. If you feel that our information does not fully cover your circumstances, or you are unsure how it applies to you, contact us or seek professional advice. Hi @tax-questions-1 The rules for meal entertainment are relaxed for the 2022 FBT year for meals provided - ** by a supplier that was authorised as a meal entertainment provider from 1 April 2021, and **while restaurants and public venues were required to be closed to dine-in service due to a COVID-19 state public health order. This material is general information only. This includes meals ordered through delivery platforms such as Deliveroo, Menulog and Uber Eats. . For instance, you may salary package cars, computers, super funds, and child care, etc. You can't access the salary amount you sacrifice for the period of your arrangement. Subject to the terms of any contract of employment or industrial agreement, you can renegotiate a salary sacrifice arrangement at any time. An employee can of course pay for such expenses with their credit card, if they have salary packaged a credit card utilising the $17,000 FBT free cap. Meal Entertainment allowance - Cap of $2,650. A flat statutory rate of 20% applies for FBT purposes, regardless of the distance travelled. Technically, it is defined as the "provision of entertainment by way of food or drink. But now you'd be paying for them with tax-free dollars. meals or drinks from venues on-site (at your workplace), alcohol, unless it is consumed when dining out with friends or family, choose how much you wish to spend on your card (up to the yearly cap limit), put an end to paper receipts and filling out claim forms. The important thing is that these benefits form part of your remuneration. Alcoholic drinks that are not purchased in conjunction with a meal. Yes, you can package up to $2,650 each FBT year, but the Meal Entertainment cap is in addition to the existing salary packaging cap limit for everyday living expenses (for example, mortgage or rent). The annotation needs to clearly explain the entertainment connection of the food or drink purchased (e.g. What is included in Meal Entertainment packaging? Make sure you have the information for the right year before making decisions based on that information. Travel/accommodation costs for local or overseas holidays for recreation purposes. Permanent full time, permanent part time and temporary employees with contracts of at least three months duration are eligible for salary packaging and meal entertainment. As a result of Grant Thornton presenting this problem and a proposed solution to the Australian Taxation Office (ATO), the ATO has now issued guidance stating they will not review meal entertainment salary packaging arrangements: - in the 2020 FBT year, during the period when restaurants and public venues were closed; nor - in the 2021 FBT year . Enjoy all the benefits of Paywise Salary Packaging with Apple Pay. If you provide entertainment to employees and non-employees (such as clients), only the entertainment for employees and their associates is subject to FBT. At LeasePLUS, diversity and inclusion are more than just words. Merchant blocking may mean that your Meal Entertainment Card is not accepted at some venues, if this happens, simply keep your receipt and make a claim via the. Travel and accommodation costs where the purpose of the travel was for meal entertainment. NSW Health is required to conduct random audits of statements to ensure compliance with meal entertainment policy. You can then add a card from My Salary Package. 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. 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. 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. It's a Mastercard prepaid card that you can use all over Australia whenever you eat out. Payment notification. If you aren't packaging an ongoing expense like mortgage or rent, the easiest way to salary package your living expenses is by using our ATO-approved Smartsalary Everyday Purchase card. Use your card to buy almost anything including groceries and clothes, or to pay for your bills. How much can an employee save each fortnight or each year? Make sure you have the information for the right year before making decisions based on that information. Your RFBA is 'grossed-up' to reflect the pre-tax income you would have had to earn, at the highest marginal tax rate (plus the Medicare levy), to buy the benefits yourself. 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. They can close your card and issue a new one. Calculating the taxable value of entertainment-related benefits Use the actual value or meal entertainment methods to work out the taxable value of entertainment-related benefits. Find out what salary sacrificing is, how to set up an effective arrangement and the tax implications of an arrangement. At LeasePLUS, diversity and inclusion are more than just words. Under a salary sacrifice arrangement, you should pay less tax than you would have without an arrangement. You will still salary package the same amount annually itll just be spread over one less pay (say, 25 fortnightly pays instead of 26). This is the end of the salary packaging year. Whether youre ready to get started or would like to know more, were here to help. 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). Employees need to write at the end of the statement the following: . Eligibility for the Holiday Accommodation and Venue Hire benefit is dependent on your industry and employer. What an employee cant pay for with the MEC. (d) Where is the food or drink being provided? You can then check your balances and transactions live. use their meal entertainment card and then apply for reimbursement) cannot be made. Examples of expenses that are not likely to be meal entertainment, 4. Beyond Banks community focus aligns perfectly with our dedicated customer service and value commitments throughout metropolitan and regional Australia. The ATO outlines salary packaging as: "an arrangement between an employer and an employee, where the employee: . Save even more money by salary packaging your vehicle finance and running costs with a novated lease. You can access meal entertainment in two ways: A combination of the two methods can be used, however, double claims (i.e. 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 . For either card, you need to spend your funds by31 Marcheach year. Travel and accommodation to attend a wedding dinner as a guest. It is an arrangement between an employer and an employee, where the employee: An effective salary sacrifice arrangement will detail the amount of salary or wage income to be sacrificed. Lucy is salary packaging the $2,650 meal entertainment benefit . Add Card Benefits of our Cards Paperless. taxi travel for meal at such and such restaurant on such and such date). This means they are taxed in the super fund under tax laws dealing with this subject. accommodation costs are restricted to one overnight stay. a salary sacrifice arrangement where employee contributions are provided. Harbour cruise with morning tea provided. Want to save on meals from your favourite restaurants? Drinks/food while on holidays at a resort/hotel, etc. GO Salary has partnered withBeyond Bank, a member owned community bank and a leading provider of card solutions. Use the actual value or meal entertainment methods to work out the taxable value of entertainment-related benefits. 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. Smartsalary Meal and Entertainment Card Sign up for a Smartsalary Card to make packaging your meal entertainment expenses easier! you don't need to notify us your business records are sufficient evidence of your choice. When is food, drink and recreation considered entertainment? The cards fully compatible with Apple Pay and Android Pay. Paywave. 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. All receipts are required by the ATO to be in English and itemised in detail showing time, date, details of purchases and clearly identify the restaurant/cafe/function centre/caterer. 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. Meal Entertainment covers your restaurant and bistro bills whenever you're dining out with others. This is clearly marked. This includes either: The benefit you receive may affect your eligibility for: Your salary-sacrificed super contributions are additional to your super guarantee entitlements. For example, a sandwich and drink for lunch is considered 'sustenance' and cannot be claimed under this benefit. If you don't receive a fringe benefit and it is cashed out, the amount becomes salary and you pay tax on the amount as normal income. The ATO advises that as an employee of a Public Benevolent Institution (PBI) or health promotion charity . If you have a carry-forward balance on your card from 1 April, this canreducethe amount you can salary package in the following year. Book an appointment or contact the SalaryPackagingPLUS team: Our Aboriginal workforce Jobs to Careers, Our staff with a disability or long term health condition, Diversity, Inclusion and Belonging Strategy 2021-2024, Income Statements and Reportable Fringe Benefits, Salary Packaging Card Application Form (PDF), Meal Entertainment - Frequently Asked Questions, Keeping receipts keep receipts for meals and drinks consumed in a restaurant or cafe (personal) or provided at a social gathering (personally or professionally catered) and complete the, Meal Entertainment Card - apply for a Meal Entertainment Card using the, meals and drinks consumed must total more than $15, drinks (both alcohol and non-alcohol) can only be claimed if consumed in conjunction with a meal, take-away food and drink is not allowed. To give you time to spend your balance, we wont make payments in the final week of March. for the purposes of consuming food/drink at that venue. An annual $28 administration fee is charged from your gross salary (before tax is deducted) when you set up meal entertainment. Meal Entertainment is a reportable fringe benefit with a $5,000 grossed up cap, and will be included on your income statement. To make the most of this benefit, you must reduce the balance on your card to $0 by 31 March each year as you cannot carry over any remaining balance to the next FBT year. Salary packaging is a great way to give yourself a pay rise If you pay income tax, then you could benefit from salary packaging Quite simply, with salary packaging you: Spend part of your pay before tax is calculated This reduces your taxable income You pay less tax Which means more money in your pocket Find out how it all works Salary sacrifice arrangements for your not-for-profit organisation are the same as for businesses. Your not-for-profit organisation may decide to enter into salary sacrifice arrangements with its employees. Non-food related purchases for self-catering. A salary sacrifice arrangement reduces your taxable income, meaning you may pay less tax on your income. You can salary package: up to $15,900 per FBT year if you work for a charity or not-for-profit organisation (equal to $611.50 per fortnight) up to $9,010 per FBT year if you work for a public or private not-for-profit hospital (equal to $346.50 per fortnight) Even if you have a HELP/HECS debt you could benefit from salary packaging. payment of your expenses for loan repayments, school fees and childcare costs. Work out if FBT applies to food, drink or recreation, and any associated travel or accommodation. They are easy to use and paperless. What an employee should do if they are not sure if an expense is meal entertainment. The table below provides an outline of what you can and can't package as meal entertainment: Things you need to know There is a limit of $2,650 each FBT year for this benefit. Fees and Charges (deducted from the Value on the Card), Annual Fee per benefit, charged monthly*, Disputed transaction fee (per transaction). It works the same way as a debit card - except the funds are drawn from your salary packaging account. Depending on your employer a range of personal expenses can be salary packaged including rent, mortgage, credit card payments, meals and relocation. Salary+car (withemployee contributions), Income after tax and salary sacrifice amount, Reportable fringe benefits amount for employee's income statement or payment summary, (car fringe benefit taxable value of $7,0001.8868). Melbourne, Victoria Often this will occur by way of a 'meal card' being provided by a salary packaging provider to be used by the employee to pay for meal entertainment. 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. You will not be able to claim a tax deduction for an expense your employer pays for as part of your salary package. The card is aVISAdebit card and is therefore widely accepted in-store and online. This exemption only applies to meal entertainment and not to recreation. . 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. In cases of doubt an employee needs to consider: (a) Why is the food or drink being provided? The maximum amount that can be claimed under meal entertainment is $2,649. 2. Food provided in a social setting, e.g. Can I use Meal Entertainment for take-away, home delivery etc.? any receipt marked takeaway, drive through, carry out, will not be accepted. 1. Simply set push notifications on your Beyond Bank mobile app to let you know when your funds have been deposited. This cap is separate to the $17,000 grossed up salary packaging cap. This is a combined limit of both meal entertainment (receipts) and the Meal Entertainment Card. Phone: 1300 402 523 (Monday to Friday 8am-8pm). Exempt entertainment benefits for business, Common entertainment scenarios for business, FBT and entertainment for not-for-profit and government organisations, Tax-exempt body entertainment fringe benefits, Entertainment exemptions for not-for-profit and government organisations, Common entertainment scenarios for income tax exempt bodies, Calculating the taxable value of entertainment-related benefits, Accommodation and location related fringe benefits, Living-away-from-home allowance fringe benefits, Relocation expenses fringe benefit concessions, Exemptions, concessions and other ways to reduce FBT, Taxi, ride-sourcing and public transport exemptions, Contributions to approved worker entitlement funds, FBT concessions for not-for-profit organisations, Overview: FBT concessions for not-for-profits, FBT and not-for-profit organisations that provide care, FBT registration, lodgment, payment and reporting, Reporting exclusion for pooled or shared cars, Reporting exclusion for entertainment-related benefits, FBT administration in government organisations, How FBT operates for government employers, Effective FBT administration by government organisations, Establish and maintain effective FBT controls, Review the effectiveness of FBT administration, Nominating state or territory bodies as FBT employers, Effect of nominating a body as an FBT employer, FBT exemption for fly-in-fly-out arrangements, Aboriginal and Torres Strait Islander people. Theres no need to submit claims or receipts just present your card to pay the bill and it will automatically be deducted from your entertainment account its as simple as that! Sam earns $65,000a year and is considering entering into an effective salary sacrifice arrangement. Your card is not able to be used for direct debit or BPay payments. We are a small not-for-profit and I would like to set up salary packaging including the meal/entertainment/holiday allowance of . What this means is that, dependent on your employer, you could be eligible to package up to $15,900 on costs that you'd ordinarily incur anyway - such as groceries, utility bills and mortgage or rent repayments. The dine-in meal must be for two or more persons. Where original receipts are in a foreign language, they . The table below provides an outline of what you can and cant package as meal entertainment: 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. Use your card for purchases anywhere in the world where VISA is accepted. a department store appearing on your statement, any inappropriate use of the card will require a refund to NSW Health in post-tax dollars for the value of unauthorised use, where NSW Health is of the view that an employee continually breaches the policy, the employees card may be cancelled without further notice and the employee disqualified from applying for another Meal Entertainment Card for a period of time determined at the discretion of NSW Health, foreign currency fees may be incurred if the card is used overseas, NSW Health use an EML Payment Solutions Limited merchant block to allow restaurant and caf purchases only. The MEC can only be used to pay for qualifying meal entertainment expenses as explained in the following. How to work out FBT on entertainmentUse these steps to work out the FBT on food, drink and recreation you provide to employees. Last modified: 12 Jan 2023 QC 71137 Meal entertainment allows staff to pay less tax by claiming meals and drinks consumed in a restaurant/caf or provided at a social gathering. Create your myGov account and link it to the ATO, Help and support to lodge your tax return, Residential rental properties and holiday homes, Instalment notices for GST and PAYG instalments, Your obligations to workers and independent contractors, Encouraging NFP participation in the tax system, Australian Charities and Not-for-profits Commission, Departing Australia Superannuation Payment, Small Business Superannuation Clearing House, Annual report and other reporting to Parliament, Complying with procurement policy and legislation, FBT on cars, other vehicles, parking and tolls, Taxable value of private use of eligible vehicles. Update Relating to Meal Entertainment and COVID-19 Please Click to Read. CBB's Meal Entertainment and Holiday Accommodation (e.g. Salary+car (withoutemployee contributions), 3. You can also call Beyond Bank on13 25 85. Credit card stub receipt only or receipt that is not itemised/does not show business name and ABN. It is common in many NFP sectors (e.g. If you feel that our information does not fully cover your circumstances, or you are unsure how it applies to you, contact us or seek professional advice. There should be an agreement between you and your employer. Your employer must still pay your full super guarantee entitlements as though there was no salary sacrifice. Quality time with friends and family over a good meal at your favourite caf or restaurant is all the more affordable and achievable when you salary package meal entertainment. 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. Salary packaging your restaurant meals is a simple way to put tax savings on the menu, Have you got an appetite for savings? the taxable value of the car fringe benefit will be $7,000(which is the cost of the car multiplied by the statutory rate, in this case$35,0000.20) and, $17,353if no employee contributions are made. Expenses paid with direct debits from your pay are not salary sacrificed. Order Cards - Expense and Meal Entertainment. Overseas transactions incur a 2.99% foreign exchange fee. When is food, drink and recreation considered entertainment?Find out if food, drink and recreation you provide to employees is considered entertainment that is subject to FBT. Breakfast/lunch/dinner with friends or family at a restaurant/caf (with knife & fork). the employee pays income tax on the reduced salary or wages, the employer may be liable to pay fringe benefits tax (FBT) on the fringe benefits provided. 484063) to provide credit assistance to you. Calculating the taxable value of entertainment-related benefitsUse the actual value or meal entertainment methods to work out the taxable value of entertainment-related benefits. 1 What can I salary package under Meal Entertainment? NSW Health may request further information from the employee where the information provided together with the statement is not adequate. We are committed to providing you with accurate, consistent and clear information to help you understand your rights and entitlements and meet your obligations. We actively promote the employment of Aboriginal and Torres Straight Islanders, people with disability, those identifying as LGBTIQ+, and people from diverse cultural backgrounds so we can connect with our customers and the communities we serve. enter the arrangement before you perform the work, the amount to be sacrificed and any surcharges. For example, food or drink provided for the purpose of refreshment would not generally be meal entertainment, whereas food or drink provided at a social function for enjoyment would be meal entertainment. Salary Packaging is an ATO approved method of restructuring your salary. For new GO Salary members, apply now toget your salary packagingstarted in minutes. To read more about how we handle your personal information, please read our Privacy Statement. Salary packaged Meal Entertainment and Entertainment Facility Leasing (MEVH) benefits are available to eligible ACT Government employees who qualify for the Fringe Benefits Tax (FBT) exemption under 57A of the FBTAA where; "the duties of employment of the employee are exclusively performed in, or in connection with a public hospital; or 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.