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Meal Entertainment Change A Step Closer

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.

To read the full Pro Bono article click here.


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