MEAL TYPE CARD ARRANGEMENTS
The 08 Budget made a reference that theFBT exemption for certain meal type card arrangements will be tightened by excluding meals provided as part of a salary sacrifice arrangement.
The Treasurer’s Press release accompanying the Budget Papers goes on to say that:
Some employers and employees are currently exploiting the existing FBT exemption for property consumed on an employer’s premises through meal card type arrangements. Under these arrangements, an employer pays for an employee’s meals, provided by a third party (for example, a café or catering service) located on, or delivered to, the employer’s premises. The integration of meal facilities into business premises, such as cafés and ‘food court’ outlets in large office blocks, has facilitated the promotion of these arrangements.
The reference to the “FBT exemption for property consumed on an employer’s premises through meal card type arrangements” indicates that the exemption to be amended by these proposed changes is different to the exemption relied on by PBI clients using the Westpac Meal Entertainment Card (MEC).
Therefore, no changes to the taxation position of the MEC are anticipated as a result of the changes announced in the Budget.
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