Ambos & Nurses: FBT changes that will effect you (Budget 2015)

We pay particular attention to issues affecting paramedics/ambos and nurses, as we count many of these outstanding professionals as part of our client base.

Currently, employees of public and not-for-profit hospitals and public ambulance services have a standard $17,000 FBT exemption cap ($17,667 for the first year). In addition to this FBT exemption cap, eligible workers can salary sacrifice meal entertainment benefits with no FBT payable by the employer and without the benefits being reported.

As part of the Budget reforms, the Government is introducing a separate single grossed-up cap of $5,000 for salary sacrificed meal entertainment claimable by certain workers.

Meal entertainment benefits exceeding the separate grossed-up cap of $5,000 can also be counted in calculating whether an employee exceeds their existing FBT exemption or rebate cap.

All use of meal entertainment benefits will become reportable.

What this means for you

From 1 April 2016, the amount you can spend on meal entertainment exempt from FBT, will be limited to between $2,300 and $2,550 depending on whether the items are subject to GST (ie taking you to the $5,000 grossed-up cap).

For further information, please Contact us to discuss your personal circumstances.