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Fringe Benefits Tax (FBT) is a tax payable by employers for benefits paid to an employee. There have been some changes of tax rate on the fringe benefits of salary packaged meal and other entertainment benefits tool from the 1st of April 2016. Among those changes some will affect all the employees where as some will affect only not-for-profit organisations.
Changes for all employees
The following applies to all employees:
The above changes are only applicable for those benefits that are provided under a salary packaging arrangement. Such as, entertainment by way of food or drink, a corporate box, boats or planes for providing entertainment and other premises or facilities for providing entertainment.
Changes for non-profit employees
The following applies to all not-for-profit employees:
For the calculation of FBT exemption or rebate cap you must include the amount of separate grossed-up cap.
Per the new changes an employee can receive such benefits worth between $2,329.59 and $2,549.98 without exceeding the $5,000 cap depending on whether the employer is entitled to GST credits.