New limits on FBT entertainment benefits

New limits on FBT entertainment benefits

In the 2015-16 Budget, the Australian Government introduced a separate single grossed up cap of $5,000 for salary sacrificed meal entertainment and entertainment facility leasing expenses (meal entertainment benefits) for employees.

That cap will apply from April 1, 2016, to coincide with the start of the FBT year. The new limits are designed to improve fairness in the Australian tax system and will apply to the use of FBT salary packaged meal and entertainment facility leasing expenses.

Meal entertainment benefits that exceed the $5,000 grossed-up cap will count towards an employee’s existing FBT exemption or rebate cap.

All salary packaged meal and other entertainment benefits will be reported on an employee’s payment summary if their reporting threshold is exceeded.

Employers should consider how the changes may affect any of their clients or employees who may receive or provide salary packaged meal or other entertainment benefits.


If you believe the matters discussed above are relevant to your business, please contact Darren Smith of our office to discuss further.

Darren is a Chartered Accountant with extensive experience, including working in the big 4 and medium sized firms before becoming a partner of a city based firm in 2000.

He has gained much experience and has extensive knowledge in providing business and taxation advice, superannuation planning, negotiation of sales and acquisitions of businesses and property development. His client base covers a wide range of industry groups.

Darren works with business owners to grow their businesses and create personal wealth within and outside of their business.

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