Salary Packaging Changed Forever
8 March 2016 at 8:49 am
The capping of “entertainment” fringe benefits starts 1 April 2016. Salary packaged meal entertainment and holiday accommodation (venue hire) will only qualify for FBT exemption (or the FBT rebate) up to a grossed up value of $5,000 ($2,550 “cash” value).
Salary packaged meal entertainment and venue hire provided from 1 April will also be reportable on employee Payment Summaries for the year ending 30 June 2017.
The reporting will have implications for employees with Centrelink payments, HELP debts and child support from 1 July 2016.
Anton Gaudry, Chartered Accountant and CEO of Advantage Salary Packaging, said the new laws change the game.
“The restrictions remove some of the potential excesses of salary packaging. It also means we actually have a more complex system. We are now running two capped amounts within a salary package. This is harder than before,” Gaudry said.
Frank Sedmak, General Manager People and Culture at Cerebral Palsy Alliance, said “the changes do require a re-think of our salary packaging strategies. Whilst maybe not so relevant in the past, novated car leases in particular will now come into play for more staff”.
Anton Gaudry agrees.
“We think there are opportunities. Employers need to look closely at the legislation and identify the upside. You need the right salary packaging program more than ever,” he said.
Contact Anton at email@example.com or visit www.salary.com.au for more information on salary packaging.