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. You should seek financial advice before entering a salary sacrifice arrangement. 1 Theres a cap across Meal and Entertainment, Holiday Accommodation and Venue Hire benefits of $2,650 per FBT year (1 April 31 March). Gunzenhausen (German pronunciation: [ntsnhazn] (); Bavarian: Gunzenhausn) is a town in the Weienburg-Gunzenhausen district, in Bavaria, Germany.It is situated on the river Altmhl, 19 kilometres (12 mi) northwest of Weienburg in Bayern, and 45 kilometres (28 mi) southwest of Nuremberg.Gunzenhausen is a nationally recognized recreation area. Technically, it is defined as the "provision of entertainment by way of food or drink. ), Entertainment (e.g. You receive some of your salary tax free, so you pay less tax and take home more pay. Salary Packaging & Payroll. Employees will need to provide hand written annotations on any items appearing on the statement that are not obviously meal entertainment from the entry appearing on the statement (eg items purchased from a hardware store, supermarket). Your not-for-profit organisation may decide to enter into salary sacrifice arrangements with its employees. 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 . The easier and safer way to 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 There is an annual cap amount of $2,650 for Meal Entertainment. 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. Save. 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).1, Dining at a restaurant, caf, club, pub or fast food restaurant with your family or friends, Hiring professional caterers to prepare and serve food and drinks for a party.2, Attending a ball, gala event or charity dinner. Can I use Meal Entertainment for take-away, home delivery etc.? 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 meal cost must be included in the claim. Mortgage, rent, car and credit card expenses are just some of the things you can use to minimise your tax. Drink only including purchases for consumption at BYO restaurant. Overseas meal purchase if receipt is in English. The dine-in meal must be for two or more persons. Make sure you have the information for the right year before making decisions based on that information. Travel and accommodation costs where the purpose of the travel was for meal entertainment. 3000. 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. Elizabeth Street from ATMs, or when making EFTPOS transactions. With the Meal Entertainment benefit, you could save hundreds of dollars each year. This is clearly marked. . You can use the actual value of the benefits that is, the amount you paid. An effective salary sacrifice arrangement will detail the amount of salary or wage income to be sacrificed. . This is the end of the salary packaging year. It's a Mastercard prepaid card that you can use all over Australia whenever you eat out. 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). Access to balances and transaction history 24/7 via internet banking or the Beyond Bank mobile app. 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. Depending on your employer a range of personal expenses can be salary packaged including rent, mortgage, credit card payments, meals and relocation. 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. Australian Taxation Office for the Commonwealth of Australia. Non-food related purchases for self-catering. However, multiple functions can be combined e.g. GO Salary offers aSalary Packagingcard for everyday household expenses, and aMeal Entertainmentcard for dining and holiday accommodation. When is food, drink and recreation considered entertainment? Paywise Salary Packaging with Apple Pay. (Special declaration required). 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. Expenses paid with direct debits from your pay are not salary sacrificed. It is common in many NFP sectors (e.g. Travel and accommodation to attend a wedding dinner as a guest. 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. These are not fringe benefits if your employer pays them to a complying super fund. Last modified: 12 Jan 2023 QC 71137 What expenses can an employee pay with the MEC? Breakfast/lunch/dinner with friends or family at a restaurant/caf (with knife & fork). The amount your employer reports is known as your reportable fringe benefits amount (RFBA). 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. 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). Salary packaging is an ATO approved way of paying for certain items before you pay income tax. Simply tell us how much pre-tax salary you want to spend on meals each pay period and well regularly transfer that amount straight to your Salary Packaging and Meal Entertainment card, you simply pay as you go. SalaryPackagingPLUS is one of Australias leading providers of salary packaging services to public health, charity/not-for-profit, rebatable and government organisations. These are ATO restrictions. Just touch to make purchases. Read the. 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. GO Salary has partnered withBeyond Bank, a member owned community bank and a leading provider of card solutions. SalaryPackagingPLUS is proud to partner with Beyond Bank to provide our customers with Visa debit cards for general living and meal entertainment expenses. You will not be able to claim a tax deduction for an expense your employer pays for as part of your salary package. Maxxia Pty Ltd | ABN 39 082 449 036 act as an authorised representative on behalf of a number of Australian financial services licensees. Money cannot be transferred from the card, nor can you top up your card with extra funds from your own bank account. Professional catering costs for a private function, e.g. 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. The annotation needs to clearly explain the entertainment connection of the food or drink purchased (e.g. Meals and entertainment benefits - employees can allocate up to $2,650 each FBT year towards entertainment benefits. a salary sacrifice arrangement where employee contributions are provided. 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. This is clearly marked. Purchase of general household food and drink. The ATO-approved CBB Meal Entertainment and Holiday Accommodation Card allows you to salary package meals, accommodation expenses and venue hire using tax-free dollars. Light meals such as morning tea are less likely to be meal entertainment as opposed to more elaborate meals. The MEC can only be used to pay for qualifying meal entertainment expenses as explained in the following. Holiday or cruise where fare includes all meals. Employees should note that on application for an MEC they are declaring that the MEC will only be used for meal entertainment expenses. 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, Benefits provided by associates and third parties, FBT guide: 14.12 Taxable value of recreational entertainment, FBT guide: 14.8 How to calculate the taxable value of a meal entertainment fringe benefit, Aboriginal and Torres Strait Islander people. Taxi travel to a club/restaurant etc. We don't provide advice on entering or rejecting a salary sacrifice arrangement. Yes. Use your card to buy almost anything including groceries and clothes, or to pay for your bills. A salary sacrifice arrangement is also referred to as salary packaging or total remuneration packaging. use their meal entertainment card and then apply for reimbursement) cannot be made. 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. This new limit is a combined cap across both benefits applicable each Fringe Benefits Tax (FBT) year (from 1 April to 31 March the following year) What does 'grossed-up' value mean? Send us a message using your GO Salary inbox, emailgetgo@gosalary.com.au, phone (03) 9955 7380, or Ask Amy! Ordinarily, you get paid in return for work but before this happens, your employer deducts income tax. Important information:This is general information only. They can close your card and issue a new one. tax invoices/receipts must identify the restaurant/caf/function centre/caterer. 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. 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. 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. Theyre the principles that guide how we create our teams, choose our leaders and build a company thats the right fit for everybody. The result is that you pay less income tax and increase your take-home pay. You can do this quickly and easily using the Beyond Bank smartphone app. wedding or birthday party. a salary sacrifice arrangement without any employee contributions. you don't need to notify us your business records are sufficient evidence of your choice. Make sure you have the information for the right year before making decisions based on that information. for birthday party on such and such date). 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. the card cannot be used to withdraw cash; e.g. Please consider if this product is right for you. 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 . Salary packaging your restaurant meals is a simple way to put tax savings on the menu, Have you got an appetite for savings? No, takeaway with Meal Entertainment is not available. 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. Salary Packaging - Meal Entertainment and Entertainment Facility Leasing Expense (MEVH) Guidelines. Link to download MySalPack app user guide, More information about our partnership with Beyond Bank Australia, Book a salary packaging phone consultation. Link to download MySalPack app user guide, More information about our partnership with Beyond Bank Australia, Book a salary packaging phone consultation. You should seek financial advice before entering into a salary sacrifice arrangement. 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). But it can also seem quite complicated in the beginning. travel to city and overnight stay for a celebratory dinner. Travel and accommodation costs where the purpose of the travel was for more than meal entertainment. Meal Entertainment: COVID-19 Update. To read more about how we handle your personal information, please read our Privacy Statement. Your employer will have to pay FBT on the value of the benefit they provide you. Food provided in a social setting, e.g. Some of the information on this website applies to a specific financial year. Its a great way to enjoy additional tax savings, stretch your pay packet further and start enjoying life more. $4,145if employee contributions of $7,000are made. Make sure you have the information for the right year before making decisions based on that information. Grocery and supermarket bills. 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. You will still salary package the same amount annually itll just be spread over one less pay (say, 25 fortnightly pays instead of 26). The GST-exclusive value of the car expenses is $10,509. (c) When is the food or drink provided? Credit card stub receipt only or receipt that is not itemised/does not show business name and ABN. 2. Conditions and fees apply. Salary packaging is an ATO approved method of using concessions available to your employer to reduce the tax you pay. Each year we help thousands of Australians change their lives with salary packaging. Read the PDS for more information. (b) What food or drink is being provided? is likely to place greater value on the benefit than its cost to the employer. 5. Entertainment in this sense does not refer to a performance or the like, but more generally to some gathering of people to carry out some activity with a view to enjoying themselves. Employees need to write at the end of the statement the following: . Add Card Benefits of our Cards Paperless. 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. Where original receipts are in a foreign language, they . Taxi fares to and from the restaurant or event. Address: Level 12,717 Bourke StreetDocklands, VIC 3008, Proudly partnering with Beyond Bank Australia -. The salary packaging provider calculates that: The following table illustrates how salary sacrificing and employee contributions work, by comparing the net disposable income for Sam in 3scenarios for 202122: 2. 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. Salary sacrifice arrangements for your not-for-profit organisation are the same as for businesses. 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. for the purposes of consuming food/drink at that venue. The FBT year is from 1 April 31 March. Simply set push notifications on your Beyond Bank mobile app to let you know when your funds have been deposited. Address: Level 12,717 Bourke StreetDocklands, VIC 3008, Proudly partnering with Beyond Bank Australia -. (d) Where is the food or drink being provided? Dinner/lunch/breakfast at a restaurant/caf for employee and family/friends. Beyond Banks community focus aligns perfectly with our dedicated customer service and value commitments throughout metropolitan and regional Australia. You aren't taxed on your RFBA. With a Maxxia Wallet Card you can: choose how much you wish to spend on your card (up to the yearly cap limit) Mary's employer works out the taxable value of the benefit using the actual value method on a per-head basis. This exemption only applies to meal entertainment and not to recreation. Salary packaging is an ATO approved method of using concessions available to your employer to reduce the tax you pay. Find out what salary sacrificing is, how to set up an effective arrangement and the tax implications of an arrangement. How salary packaging can benefit you You can take home more pay Example: Salary sacrifice of a motor vehicle. claims should only be made when at least $500 worth of receipts are gathered. The ATO-approved meal entertainment and holiday accommodation beneit allows you to salary package an additional $2,650 per year to pay for meals, accommodation expenses and venue hire using tax-free dollars. But now you'd be paying for them with tax-free dollars. This is over and above your normal salary packaging amount. periodical payments or direct debits cannot be set up on the card. This provides you with an additional $2,650 tax free per year, saving you even more on tax. e.g. 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 can access meal entertainment in two ways: A combination of the two methods can be used, however, double claims (i.e. 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. 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. Meal Entertainment Cards and Living Expenses Cards are provided through EML Payment Solutions Limited, a monthly account fee of $5.50 (including GST) will be charged for cardholders. If you are over the $30,000 cap, complete steps 15-20. Under a salary sacrifice arrangement, you should pay less tax than you would have without an arrangement. Mary entertains3 of her employer's clients at a local restaurant. 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. 1. 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. Hi Elli, I found this on the Smart Salary website: Home Delivery and Takeaway meal purchases during 2020-21 . We don't provide advice on entering or rejecting a salary sacrifice arrangement. 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.