Salary Packaging | EML Payments Address: Level 12,717 Bourke StreetDocklands, VIC 3008, Proudly partnering with Beyond Bank Australia -. Meal Entertainment - Frequently Asked Questions - HealthShare NSW In cases of doubt an employee needs to consider: (a) Why is the food or drink being provided? Once you know the taxable value of the benefits, you can calculate, report and pay your FBT. There should be an agreement between you and your employer. SalaryPackagingPLUS is one of Australias leading providers of salary packaging services to public health, charity/not-for-profit, rebatable and government organisations. Last modified: 12 Jan 2023 QC 71135 The meal cost must be included in the claim. Access to balances and transaction history 24/7 via internet banking or the Beyond Bank mobile app. Not-for-profit salary packaging If you are a not-for-profit employer, you may provide salary-packaged meal entertainment to your employees to take advantage of an exempt or rebatable cap. Download theBeyond Bank smartphone app. NSW Health may request further information from the employee where the information provided together with the statement is not adequate. You can access meal entertainment in two ways: A combination of the two methods can be used, however, double claims (i.e. from ATMs, or when making EFTPOS transactions. Dinner/lunch/breakfast at a restaurant/caf for employee and family/friends. 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). Whether youre ready to get started or would like to know more, were here to help. SalaryPackagingPLUS is proud to partner with Beyond Bank to provide our customers with Visa debit cards for general living and meal entertainment expenses. The FBT year is from 1 April 31 March. You can also call Beyond Bank on13 25 85. Tax-exempt body entertainment fringe benefits, exemptions and common scenarios for not-for-profits and government. Salary Sacrifice - meals & entertainment | ATO Community If you provide entertainment to employees and non-employees (such as clients), only the entertainment for employees and their associates is subject to FBT. 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. is more likely to be meal entertainment. It does not take into account your particular/personal objectives, personal financial situation or personal financial circumstances. Salary Packaging and Meal Entertainment Card | Smartsalary This material is general information only. This includes either: The benefit you receive may affect your eligibility for: Your salary-sacrificed super contributions are additional to your super guarantee entitlements. An annual $28 administration fee is charged from your gross salary (before tax is deducted) when you set up meal entertainment. 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. 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. 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. What is Salary Packaging and How Does it Work? - Eziway Salary Packaging | Advantage You should seek financial advice before entering a salary sacrifice arrangement. However, multiple functions can be combined e.g. 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. The easiest way to salary package your Meal Entertainment expenses is to use your Maxxia Wallet card. 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). Some of the information on this website applies to a specific financial year. 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. Capped Expenses | Smartsalary Therefore the taxable value of the benefit is 25% of the amount reimbursed to Mary. Your card is not able to be used for direct debit or BPay payments. Non-food related purchases for self-catering. DOCX Salary Packaging - Meal Entertainment Guidelines 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. Save even more money by salary packaging your vehicle finance and running costs with a novated lease. Takeaway meals now included in NFP salary packaging Taxi fares to and from the restaurant or event. By Ben Markovic 17 September 2021. Credit guide for Maxxia Pty Ltd (as credit representative of Onboard) available here. Smartsalary Meal and Entertainment Card Sign up for a Smartsalary Card to make packaging your meal entertainment expenses easier! Fees and Charges (deducted from the Value on the Card), Annual Fee per benefit, charged monthly*, Disputed transaction fee (per transaction). The $11,500running expenses includes registration, which is GST-free. Before entering into any salary packaging or novated leasing arrangement, you should consider your objectives, financial situation and needs, and, seek appropriate legal, financial or other professional advice based upon your own particular circumstances. Australian Taxation Office for the Commonwealth of Australia. Using this method, the taxable value of food, drink or recreation, and any associated accommodation or travel, is the actual amount you pay for the benefit of the employee. 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 an employee is not sure that an expense is a meal entertainment expense, the employee should not pay for it with the Meal Entertainment Card. Existing members can add a card by logging inhere. Your contract of employment should detail your remuneration, including any salary sacrifice arrangement. 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). Meals and entertainment benefits - employees can allocate up to $2,650 each FBT year towards entertainment benefits. . What an employee should do if they are not sure if an expense is meal entertainment. don't reduce the ordinary time earnings (OTE) that the employer is required to calculate the employee's super entitlement on. Salary packaging your restaurant meals is a simple way to put tax savings on the menu, Have you got an appetite for savings? Entertainment Benefits | Advantage - Salary Attending a ball, gala event or charity dinner. 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. i.e. However, before entering into a salary sacrifice arrangement you should consider impacts and associated costs. Mortgage, rent, car and credit card expenses are just some of the things you can use to minimise your tax. 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). An effective salary sacrifice arrangement will detail the amount of salary or wage income to be sacrificed. 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). Dining at a restaurant, caf, club, pub or fast food restaurant with your family or friends 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. There is an annual cap amount of $2,650 for Meal Entertainment. You can then add a card from My Salary Package. Overseas transactions incur a 2.99% foreign exchange fee. This is over and above your normal salary packaging amount. Let's tackle the tax-free thing first up. These are also known as salary packaging or remuneration packaging. You should read the Product Disclosure Statement (PDS) for this product before making any decision on the new Card (Maxxia Wallet). The availability of benefits is determined by your employer. EML's solution includes both physical and virtual cards. a salary sacrifice arrangement where employee contributions are provided. Use your card to buy almost anything including groceries and clothes, or to pay for your bills. We take the guesswork out of salary packaging. Make sure you have the information for the right year before making decisions based on that information. Alcoholic drinks that are not purchased in conjunction with a meal. If you are over the $30,000 cap, complete steps 15-20. It is common in many NFP sectors (e.g. salary sacrificed superannuation contributions are classified as employer super contributions not employee contributions. its not applicable if only household members are attending. 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. Smartsalary Salary Packaging and Meal Entertainment Card. Food or drink during working hours is less likely to be meal entertainment than food or drink provided after hours. These are ATO restrictions. Travel and accommodation costs where the purpose of the travel was for meal entertainment. 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. Salary+car (withoutemployee contributions), 3. Salary Packaging is an ATO approved method of restructuring your salary. A salary sacrifice arrangement reduces your taxable income, meaning you may pay less tax on your income. For new GO Salary members, apply now toget your salary packagingstarted in minutes. We are a small not-for-profit and I would like to set up salary packaging including the meal/entertainment/holiday allowance of . Entertainment & Meals Fringe Benefits Tax TR 97/17 - atotaxrates.info 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. Often this will occur by way of a 'meal card' being provided by a salary packaging provider to be used by the employee to pay for meal entertainment. Under a salary sacrifice arrangement, you should pay less tax than you would have without an arrangement. Salary Packaging & Payroll. You can save on groceries, bills, clothing, and just about anything else. It does not cover take-away meals or eating out on your own. Salary packaging is a great way to give yourself a pay rise If you pay income tax, then you could benefit from salary packaging Quite simply, with salary packaging you: Spend part of your pay before tax is calculated This reduces your taxable income You pay less tax Which means more money in your pocket Find out how it all works Breakfast/lunch/dinner with friends or family at a restaurant/caf (with knife & fork). 2. Meal Entertainment: COVID-19 Update. The card is aVISAdebit card and is therefore widely accepted in-store and online. Hi Elli, I found this on the Smart Salary website: Home Delivery and Takeaway meal purchases during 2020-21 . You can then select your cards and amounts when adding expenses to your salary package fromMy 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. We don't provide advice on entering or rejecting a salary sacrifice arrangement. The maximum amount that can be claimed under meal entertainment is $2,649. hotel, restaurant, caf, coffee shop, etc. What an employee cant pay for with the MEC. Holiday or cruise where fare includes all meals. A flat statutory rate of 20% applies for FBT purposes, regardless of the distance travelled. Simply set push notifications on your Beyond Bank mobile app to let you know when your funds have been deposited. Some of the information on this website applies to a specific financial year. How salary packaging can benefit you You can take home more pay There is no restriction on the types of benefits you can include in a salary sacrifice arrangement. This means they are taxed in the super fund under tax laws dealing with this subject. providing accommodation or transport in connection with entertainment may be a residual fringe benefit entertainment provided by an employer who is exempt from income tax (for example, a registered charity) may be a tax-exempt body entertainment benefit. Salary sacrificing is also known as salary packaging or total remuneration packaging. They are easy to use and paperless. by an associate of your business or organisation, your associate must tell you the value of the benefits by 21April. PDF Salary Packaging - Meal Entertainment Guidelines Travel and accommodation cost for a holiday e.g. you don't need to notify us your business records are sufficient evidence of your choice. Under an effective salary sacrifice arrangement: the employee pays income tax on the reduced salary or wages enter the arrangement before you perform the work, the amount to be sacrificed and any surcharges. In these circumstances the annotation needs to identify the particular meal entertainment event connected with the travel and/or accommodation expenses charged to the MEC. You and your employer agree for you to receive less income before tax and in return your employer pays for certain benefits of similar value for you. You can read the PDS here. During this unprecedented time, the ATO has provided an update relating to meal entertainment expenses. When is food, drink and recreation considered entertainment? Can a not-for-profit set up their own meal entertainment salary package The card should be used fordine-inmeals. A package where food or drink is included but is not the primary purpose, e.g. Elizabeth Street Depending on your employer a range of personal expenses can be salary packaged including rent, mortgage, credit card payments, meals and relocation. Expenses paid with direct debits from your pay are not salary sacrificed. It works the same way as a debit card - except the funds are drawn from your salary packaging account. 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. Eziway News | Eziway Salary Packaging For either card, you need to spend your funds by31 Marcheach year. You may be asked to provide your statement with appropriate explanation of any items that arent immediately identifiable as meal entertainment e.g. Can takeaway food be treated as 'meal entertainment'? - TaxEd Use your card for purchases anywhere in the world where VISA is accepted. Entertainment-related fringe benefits | Australian Taxation Office A salary sacrifice arrangement is also referred to as salary packaging or total remuneration packaging. Employees can use this to pay for things like holiday accommodation or eating out at restaurants or cafes. Travel and accommodation to attend a wedding dinner as a guest. If the arrangement doesn't meet the requirements of an effective salary sacrifice arrangement, you pay tax on the benefits as assessable (or taxable) income at the time you receive the benefit. Some of the information on this website applies to a specific financial year. What is included in Meal Entertainment packaging? Your employer won't have to pay FBT on exempt benefits, such as: Salary-sacrificed super contributions under an effective salary sacrifice arrangement are considered to be employer contributions. 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. the 50:50 split method - the taxable value is 50% of your total expenditure on entertainment facility leasing expenses for all people, whether they're employees, clients or others, during the FBT year. PDF Meal entertainment and holiday accommodation - CBB Salary sacrifice arrangements and not-for-profits It's a common remuneration practice endorsed by the ATO. A whopping $15,900 annually! weddings and birthday parties) may also be paid for using the card. 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, Aboriginal and Torres Strait Islander people. 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). Download MySalPack app for existing customers. These are ATO restrictions. Salary packaging is an ATO-approved employee benefit that affords you the ability to spend your pre-tax dollars. Car hire even if related to meal purchase. How much can an employee save each fortnight or each year? 484063) to provide credit assistance to you. Find out what salary sacrificing is, how to set up an effective arrangement and the tax implications of an arrangement. NSW Health is required to conduct random audits of statements to ensure compliance with meal entertainment policy. Please call Beyond Bank on13 25 85immediately. a department store appearing on your statement, any inappropriate use of the card will require a refund to NSW Health in post-tax dollars for the value of unauthorised use, where NSW Health is of the view that an employee continually breaches the policy, the employees card may be cancelled without further notice and the employee disqualified from applying for another Meal Entertainment Card for a period of time determined at the discretion of NSW Health, foreign currency fees may be incurred if the card is used overseas, NSW Health use an EML Payment Solutions Limited merchant block to allow restaurant and caf purchases only. Use your card to purchase meals at bistros, cafes, hotels, and restaurants. Melbourne, Victoria Credit card stub receipt only or receipt that is not itemised/does not show business name and ABN. Can I salary package takeaway meals under the Meal Entertainment benefit. Accommodation or travel 'in connection with, or for the purpose of facilitating', meal entertainment e.g. The dine-in meal must be for two or more persons. At LeasePLUS, diversity and inclusion are more than just words. Holidays or any other recreational activities do not meet the criteria of in connection with and are not allowed. for birthday party on such and such date). Please consider if this product is right for you. 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 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. Salary Packaging - Meal Entertainment and Entertainment Facility Leasing Expense (MEVH) Guidelines. Salary sacrificing for employees | Australian Taxation Office Food consumed in-flight. For example, you include expenditure on: If you choose to use one of the meal entertainment valuation methods: You cannot use these methods if the entertainment is provided under a salary packaging arrangement. See Meal entertainment provided by PBIs etc. Read the. If you have a carry-forward balance on your card from 1 April, this canreducethe amount you can salary package in the following year. The following conditions apply to all meal entertainment activities: In addition to the general conditions, the following must be met to claim your personal, personally/professionally catered meal entertainment: In addition to the general conditions, the following apply to self-catered events: In addition to the general conditions, the following apply to Meal Entertainment Cards: Meal entertainment claims can be made with original tax invoices dated on or after 1 July 2002 or from an employees commencement date, whichever is later. We are committed to providing you with accurate, consistent and clear information to help you understand your rights and entitlements and meet your obligations. (c) When is the food or drink provided? Salary packaging is an ATO approved method of using concessions available to your employer to reduce the tax you pay. It's a Mastercard prepaid card that you can use all over Australia whenever you eat out. When is food, drink and recreation considered entertainment?Find out if food, drink and recreation you provide to employees is considered entertainment that is subject to FBT. With a Maxxia Wallet Card you can: choose how much you wish to spend on your card (up to the yearly cap limit) Salary packaging is an ATO approved method of using concessions available to your employer to reduce the tax you pay. Last modified: 12 Jan 2023 QC 71137 Example: Salary sacrifice of a motor vehicle. We are committed to providing you with accurate, consistent and clear information to help you understand your rights and entitlements and meet your obligations. any receipt marked takeaway, drive through, carry out, will not be accepted. 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. The GST-exclusive value of the car expenses is $10,509. 1. What expenses can an employee pay with the MEC? We don't provide advice on entering or rejecting a salary sacrifice arrangement. Meal and Entertainment Benefits in the new FBT Year (2022-23) Back On April 11, 2022 In addition to the great benefits of Salary Packaging, the ATO allows eligible employees to package the cost of dine-in meals and accommodation in the entertainment benefits cap to extend your tax savings even further.