Not-for-profit organisations in Australia face new rules on fringe benefits tax entertainment caps, following the approval in both houses of Parliament this week.
Despite lobbying attempts from various groups, a $5,000 cap in the grossed up value of benefits will apply from 1 April 2016. This equates to a limit of about $2500 in actual entertainment expenditure that will qualify for an FBT exemption or rebate (depending on the organisation’s tax endorsement status). The cap applies to meal entertainment and entertainment facility leasing expenses. Salary packaged entertainment will become reportable on payment summaries and the 50-50 and 12-week register valuation options will no longer be available for salary packaged entertainment.