Fringe Benefit Tax
Currently, certain employers are capped on the amount of concessionally taxed fringe benefits they can provide to their employees, as follows:
- FBT-rebatable employers (e.g., certain societies, associations or clubs) are subject to a $30,000 cap (increased to $31,177 for the 2016 and 2017 FBT years due to the Temporary Budget Repair Levy) on the amount of fringe benefits (which are eligible for an FBT rebate) they can provide to each of their employees.
- Public benevolent institutions and health promotion charities are subject to a $30,000 cap (increased to $31,177 for the 2016 and 2017 FBT years) on the amount of FBT-exempt benefits they can provide to each of their employees.
- Public and non-profit hospitals, and ambulance services, are subject to a $17,000 cap (increased to $17,667 for the 2016 and 2017 FBT years) on the amount of FBT-exempt benefits they can provide to each of their employees.
Certain benefits are currently excluded from these caps, such as the following: Meal entertainment-related benefits (e.g., restaurant meals); and EFLEs (e.g., holiday accommodation, and venue hire for a special event, such as a wedding).
Additionally, meal entertainment-related benefits and EFLEs are also currently excluded from the FBT payment summary reporting rules.
From 1 April 2016, the Government will introduce a separate single grossed-up cap of $5,000 for salary sacrificed meal entertainment and EFLEs (meal entertainment benefits). Where these benefits exceed the separate grossed-up cap of $5,000, they can also be counted in calculating whether an employee exceeds their existing (relevant) cap.
Furthermore, all meal entertainment benefits will become reportable.