There is no restriction on the types of benefits you can include in a salary sacrifice arrangement. Strict adherence to this policy and procedure statement is a condition of use of the MEC and is required to ensure that the MEC complies with Australian Taxation Office rules. If a benefit is provided to your employees: We are committed to providing you with accurate, consistent and clear information to help you understand your rights and entitlements and meet your obligations. The Smartsalary Salary Packaging and Meal Entertainment Card is a prepaid, reloadable Mastercard issued by EML Payment Solutions Limited ABN 30 131 436 532 AFSL 404131. Salary packaging for not-for-profit employees is an ATO-approved way of reducing the tax you pay on certain expenses. No, takeaway with Meal Entertainment is not available. food and drink provided to employees on your business premises, you must use if for all meal entertainment you provide during the FBT year, you must make your choice no later than the day your FBT return is due (or, if you don't have to lodge, by 21May). Employees should also note that the following transactions are not permitted with the MEC: The following outlines the audit procedure for MEC's: NSW Health randomly selects 20 employees each quarter and will request each employee selected to submit to NSW Health for audit, their last months card statement provided by Westpac. Salary Packaging and Meal Entertainment Card | Smartsalary Holiday or cruise where fare includes all meals. Regulated leasing and related services are provided by Onboard Finance Pty Ltd ABN 18 645 542 776, Australian Credit Licence no. COVID-19 and fringe benefits tax | Australian Taxation Office These are ATO restrictions. Save even more money by salary packaging your vehicle finance and running costs with a novated lease. from ATMs, or when making EFTPOS transactions. Calculating the taxable value of entertainment-related benefits If you are salary packaging meal entertainment, you are able to now include take-away and delivered meals from venues which previously offered dine-in facilities, but . 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. A salary sacrifice arrangement is also referred to as salary packaging or total remuneration packaging. Meal entertainment is a reportable fringe benefit with a $5,000 'grossed up' cap, and will be included on your Income Statement. At LeasePLUS, diversity and inclusion are more than just words. With a Maxxia Wallet Card you can: choose how much you wish to spend on your card (up to the yearly cap limit) 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. To be effective, the employee must enter into the arrangement: before they become entitled to be paid before they perform any work. Enjoy all the benefits of Paywise Salary Packaging with Apple Pay. Here are some examples of the potential tax saving structures: Public Benevolent Institution Public Hospital $18,200 Annual Tax-Free Threshold $18,200 $2,649 Meal Entertainment Cap $2,649 $15,900 ($30,000 Cap) Annual Cap $9,010 ($17,000 Cap) $36,749 Tax free Salary $29,859 We act as an agent for those licensees and not for you. You should read the Product Disclosure Statement (PDS) for this product before making any decision on the new Card (Maxxia Wallet). 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. The amount your employer reports is known as your reportable fringe benefits amount (RFBA). 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. Update Relating to Meal Entertainment and COVID-19 Please Click to Read. Download theBeyond Bank smartphone app. 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. I work for a Charity Organisation, how much can I Salary Package? It's a Mastercard prepaid card that you can use all over Australia whenever you eat out. 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. Your card is not able to be used for direct debit or BPay payments. Send us a message using your GO Salary inbox, emailgetgo@gosalary.com.au, phone (03) 9955 7380, or Ask Amy! You cannot take cash out of the card. 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. You can use the actual value of the benefits that is, the amount you paid. 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. Maxxia Pty Ltd (Maxxia) ABN 39 082 449 036 is an Authorised Representative of EML Payment Solutions Limited Australian Financial Services Authorised Representative number 000278683 and participates in the promotion and distribution of the Card. This material is general information only. Admission cost to theatres, movies, sporting or cultural events. 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. You can access meal entertainment in two ways: A combination of the two methods can be used, however, double claims (i.e. Conditions and fees apply. Hi Elli, I found this on the Smart Salary website: Home Delivery and Takeaway meal purchases during 2020-21 . Smartsalary Meal and Entertainment Card Sign up for a Smartsalary Card to make packaging your meal entertainment expenses easier! If you can't easily work out the actual expenditure on employees and their associates, you can apportion the expenditure on a per head basis. Salary packaging is an ATO approved way of paying for certain items before you pay income tax. Overseas meal purchase if receipt is in English. 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. 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. This means you pay less tax on your income. use their meal entertainment card and then apply for reimbursement) cannot be made. 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. Salary Sacrifice Meal Entertainment - Maxxia It works the same way as a debit card - except the funds are drawn from your salary packaging account. 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. 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. You can save on groceries, bills, clothing, and just about anything else. Catered functions (e.g. enter the arrangement before you perform the work, the amount to be sacrificed and any surcharges. Meals and entertainment benefits - employees can allocate up to $2,650 each FBT year towards entertainment benefits. For more information about the 50:50 split method for recreational facilities, see FBT guide: 14.12 Taxable value of recreational entertainment. Over 60% of Australian health, charity and PBI employees are salary packaging. See Meal entertainment provided by PBIs etc. Accommodation or travel 'in connection with, or for the purpose of facilitating', meal entertainment e.g. What is Salary Packaging and How Does it Work? - EmployeeConnect Travel and accommodation to attend a wedding dinner as a guest. Can I claim food and drinks for a birthday, wedding or anniversary? Capped Expenses | Smartsalary travel to city and overnight stay to see a show and have a special dinner. Each year we help thousands of Australians change their lives with salary packaging. Save even more money by salary packaging your vehicle finance and running costs with a novated lease. 484063) to provide credit assistance to you. 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. Australian Taxation Office for the Commonwealth of Australia. 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 SalaryPackagingPLUS is proud to partner with Beyond Bank to provide our customers with Visa debit cards for general living and meal entertainment expenses. You can read the PDS here. 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. Harbour cruise with morning tea provided. You receive some of your salary tax free, so you pay less tax and take home more pay. Existing members can add a card by logging inhere. For example, an employee who commenced on 1 July 2015 may claim from this date. movie tickets, amusement parks). This includes expenditure that may otherwise be exempt from FBT or not normally subject to FBT. 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. 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. If the answer is yes, by salary packaging meal entertainment benefits, you could enjoy a tasty side of tax-free savings when you dine out with family or friends. The annotation needs to clearly explain the entertainment connection of the food or drink purchased (e.g. Dinner/lunch/breakfast at a restaurant/caf for employee and family/friends. having the benefits reported on your income statement in myGov or payment summary. Your employer won't have to pay FBT on exempt benefits, such as: Salary-sacrificed super contributions under an effective salary sacrifice arrangement are considered to be employer contributions. Over 60% of Australian health, charity and PBI employees are salary packaging. Use your card to buy almost anything including groceries and clothes, or to pay for your bills. A package where food or drink is included but is not the primary purpose, e.g. Gasthaus Lehner Zum Storchennest - Tripadvisor Grocery and supermarket bills. But now you'd be paying for them with tax-free dollars. 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. Salary Packaging | Advantage Salary Packaging - Meal Entertainment and Entertainment Facility Leasing Expense (MEVH) Guidelines. The meals and drinks (including those of guests with the eligible employee) do not have to be related to employment with NSW Health. any receipt marked takeaway, drive through, carry out, will not be accepted. Credit guide for Maxxia Pty Ltd (as credit representative of Onboard) available here. 1 Theres a cap across Meal and Entertainment, Holiday Accommodation and Venue Hire benefits of $2,650 per FBT year (1 April 31 March). The MEC can only be used to pay for qualifying meal entertainment expenses as explained in the following. Purchases of food and drink for general consumption at home e.g. Entertainment Benefits | Advantage - Salary salary sacrificed superannuation contributions are classified as employer super contributions not employee contributions. GST) per employee (see here) Meal entertainment provided by PBIs, HPCs, public hospitals, non-profit hospitals and public ambulance services to employees is exempt from FBT. Read the. You aren't taxed on your RFBA. The meal cost must be included in the claim. You should seek financial advice before entering a salary sacrifice arrangement. Use your card to purchase meals at bistros, cafes, hotels, and restaurants. The maximum amount that can be claimed under meal entertainment is $2,649. This cap is separate to the $17,000 'grossed up' Salary Packaging cap. Mortgage, rent, car and credit card expenses are just some of the things you can use to minimise your tax. 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. Please call Beyond Bank on13 25 85immediately. Meal Entertainment | Smartsalary Dining at a restaurant, caf, club, pub or fast food restaurant with your family or friends Meal Entertainment allowance - Cap of $2,650. 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). Entertainment & Meals Fringe Benefits Tax TR 97/17 - atotaxrates.info Theyre the principles that guide how we create our teams, choose our leaders and build a company thats the right fit for everybody. 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. (Special declaration required). Some of the information on this website applies to a specific financial year. This provides you with an additional $2,650 tax free per year, saving you even more on tax. Its a great way to enjoy additional tax savings, stretch your pay packet further and start enjoying life more. 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. Please consider if this product is right for you. Make sure you have the information for the right year before making decisions based on that information. SalaryPackagingPLUS - FAQs Salary sacrificing for employees | Australian Taxation Office An annual $28 administration fee is charged from your gross salary (before tax is deducted) when you set up meal entertainment. providing accommodation or transport in connection with entertainment may be a residual fringe benefit entertainment provided by an employer who is exempt from income tax (for example, a registered charity) may be a tax-exempt body entertainment benefit. Salary sacrificing is also known as salary packaging or total remuneration packaging. Simply set push notifications on your Beyond Bank mobile app to let you know when your funds have been deposited. 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.