Exposure draft legislation is being released for consultation on the 2015-16 Budget measure that limits the fringe benefits tax concessions on salary packaged entertainment benefits.
The measure will introduce a separate single grossed-up cap of $5,000 for salary packaged meal entertainment and entertainment facility leasing expenses (entertainment benefits) for employees of public benevolent institutions, health promotion charities and employees of public and not-for profit-hospitals and public ambulance services. Currently these employees can salary package entertainment benefits with no FBT payable by the employer and without the benefits being reported.
All salary packaged entertainment benefits will also become reportable fringe benefits.
This measure will improve the integrity of the tax system by introducing a limit on the use of these benefits.
The measure applies from 1 April 2016.