SPECIAL NOTICES

As many of you may be aware, Woolworths has decided not to accept debit cards through its terminals.

This decision does not affect the use of your Westpac Employee Benefits Card (EBC) which operates like a credit card and can continue to be used in the same way. While the cards offered by some other providers are adversely affected, the EBC remains the original and most effective card in use.

Equally, the Westpac Meal Entertainment Card (MEC) can continue to be used for those purchases which qualify as meal entertainment.

NO CHANGE TO THE EXEMPTION FOR THE MEAL ENTERTAINMENT CARD IN THE 2009 BUDGET

Prior to the 2009 budget there was some speculation in the media that the Government was going to amend or remove the exemption for meal entertainment expenses.

We can now confirm that the 2009 budget has made no change to the exemption for meal entertainment expenses for public benevolent institutions.  Therefore the Westpac Meal Entertainment Card continues to remain effective and can continue to offer tax free benefits to employees in addition to the relevant tax free cap for fringe benefits. 

Those organisations not currently familiar with the benefits of the Meal Entertainment Card can contact PBI either by phone on (02) 9314 0288 or email pbi@remuneration.com.au for more information. 

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.

Tax ruling:

Employee Benefits Card (Meal Entertainment)

Tax ruling:

Employee Benefits Card (Everyday Purchases)