The government has moved a step closer to capping tax concessions on meal entertainment expenses for not-for-profits by introducing its legislation into Parliament.
Part of the Tax and Superannuation Laws Amendment Bill makes amendments limiting fringe benefit tax concessions for salary-packaged meal entertainment expenses to $5000 per year.
The Minister for Small Business and Assistant Treasurer, Kelly O’Dwyer, told Parliament in the legislation’s second reading that Schedule 3 would introduce a separate single grossed-up cap of $5000 for salary-sacrificed meal entertainment and entertainment facility leasing expenses for employees of certain not-for-profit organisations.
“All use of these salary sacrificed entertainment benefits will become reportable,” O’Dwyer said, noting that the use of this concession had moved beyond its original intention.
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